Cryptocurrency is quickly becoming the most popular form of investment. Every day, people are making huge profits from the coins they own.
The process is simple. You buy a coin when the value is low and sell when it is high. But, this process is not without its difficulties.
There are certain principles you need to know, and a basic understanding of the market movement is always a bonus. On the bright side, there are numerous platforms where this analysis is carried out every hour or minute.
Bitcoin is the largest cryptocurrency out there. At this moment, it has a market cap of almost 700 billion dollars, and it still has the potential to increase.
Right now, one coin is worth as much as $40,000, and this price is expected to double and go as high as $100,000 in a couple of years. It’s a really interesting investment to go into.
However, there are some grey areas. That is why we interviewed Nimrod Santo again, an experienced Digital Marketer, and Cryptocurrency Enthusiast, on the aspects of cryptocurrency that everyone should know.
Does cryptocurrency mean Bitcoin?
This is a popular mistake, and the answer is no. Cryptocurrency does not strictly mean Bitcoin, even though the latter is a form of cryptocurrency.
That sounds really confusing. So, let me explain it this way.
Cryptocurrency is an umbrella, and Bitcoin just happens to stay in that umbrella. There are other coins there too, and they are called Altcoins as a general term. They came after Bitcoin, and some of them are Litecoin, Monero, Ethereum, and Cardano.
Cryptocurrency refers to a form of digital currency that can be mined with the use of special machines from the internet.
How Do You Store Your Bitcoin?
Bitcoin is not really a physical entity. It refers to internet money and has to be saved in a non-physical entity with enough security. It is from this entity that you can sell it or send it to a buyer. You can also receive Bitcoin from a seller. This entity is called a wallet. Personally, I use …., but that’s not an endorsement of it.
There are four different types of wallets, depending on how it can be accessed. We have the mobile, web, desktop, and hardware wallets. Some people have added another type, which is physical and paper to it.
A mobile wallet, on the other hand, is on the phone. It can be downloaded and is capable of being used on the go. The problem with it is that it can be easily hacked.
Another downside to it is that if you lose your phone and another person finds it, they can access your wallet. To fix this, you can get one that requires a two step authentication to access at every time.
I won’t be able to explain all the types of wallet at this moment, but you can read up on them on this website.
That’s great! So, the Bitcoin price fluctuates a lot, who is in charge of setting it?
Okay. You seem to think that Bitcoin is an organization or company of some sort. IT IS NOT! Its nature resembles that of a product, and as a commodity, its price is affected by the rules of demand and supply.
When the demand for it is extraordinarily high in comparison to its supply, the price goes up, and when it is low, the price comes down. This means that the price is being set by the market or exchange.
There are different platforms where you can easily get Bitcoin. Two of them are Luno and Binance. Based on how much the buyers and sellers on these platforms/exchanges are selling, a price is fixed.
A general price is an estimation through various exchanges. It is why the market is so volatile.
What’s so spectacular about Bitcoin?
For me, it’s the idea that whatever I put in it has the potential of growing to become big. In a few years, I can even get a 100% profit. But for many people, it’s the fact that it’s a deregulated currency. It is not governed by any law, and since it’s not physical, it can’t really be tracked.
There’s also some mystery surrounding its development. Since the first time it appeared on the internet in 2008, the creator still hasn’t been pinpointed. An interview has never been granted, and it is because no one has ever laid claim to Bitcoin that makes people trust it more.
How do you think cryptocurrency can affect financial structures in 2021?
I think cryptocurrency is going to become more popular and bigger. Many platforms that have been reluctant in the past may have to accept it as a proper medium of transaction.
If SEC drops the case against Ripples or the company wins in February, it may change the whole cryptocurrency game as we know it. In fact, it may unite the diverse currencies in the world. But, that’s not certain.
However, what we do know is that cryptocurrency is radicalizing the concept of investing. Before, we were talking about interest rates, and now we’re talking about something larger.
I think 2021 is going to see a higher increase in the value of cryptos more than the years before, and I think many people are going to be ready for it. The question is, are you?
Nimrod Santo’s previous interview with us: https://coinreviews.io/nimrod-santo-direct-response-marketer-and-online-entrepreneur/