Last Updated on
Our normal Banking system has a lot of draw back one that has caused the economy of the world to continue to fluctuate and most times destroy so many investment.
There various types of Crypto currencies all over the world the most famous of all is Bitcoin, others are Ethereum, Litecoin, Zcash , Ripple and much more is being created and mined every minute.
Cryptocurrencies has being a major boost in the finance industry with little or very few people ready to tap and fully understand the benefits.
What is a CryptoCurrency.
A cryptocurrency is a digital currency that is completely decentralized from any form of government or bank control.
Meaning it is a global tender that is used for transactions without the government or bank’s influence and approval.
In a lay man’s Term, Cryptocurrencies can be simply called internet money.
The decentralized control of each cryptocurrency works through distributed ledger technology, called a blockchain.
A blockchain simply serves as a public financial transaction database
History of Crypto Currency.
In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash.
Later, in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient.
This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.
In 1998, Wei Dai published a description of “b-money”, characterized as an anonymous, distributed electronic cash system.
Shortly thereafter, Nick Szabo described bit gold.
Like bitcoin and other cryptocurrencies that would follow it, bit gold (not to be confused with the later gold-based exchange, BitGold) was described as an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published.
A currency system based on a reusable proof of work was later created by Hal Finney who followed the work of Dai and Szabo.
The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto.
It used SHA-256, a cryptographic hash function, as its proof-of-work scheme.
In April 2011, Namecoin was created as an attempt at forming a decentralized DNS, which would make internet censorship very difficult.
Soon after, in October 2011, Litecoin was released.
Cryptocurrency Stats You Should Know.
Have you ever wondered the current state and future of cryptocurrencies ? this statistics should guide you.
1. A post about Cryptocurrency appears every 3 seconds on social media.
2.The price of Bitcoin sky rocketed by 2,000% in 2017.
3. The market cap for cryptocurrencies was over $209.2 billion in 2018.
4. There are over 27 million bitcoin wallet address in total.
5. There are 2k + cryptocurrencies in the world.
6. Bitcoin accounts for over $7 Billion transactions daily.
7. There are over 5k+ Bitcoin ATM’s available worldwide.
8. Turkey is the only country with the highest adoption of cryptocurrency.
9. Ecuador became the first country to launch it own cryptocurrency in 2015.
10. The U.S Dollar is the most traded national currency for the Bitcoin.
Benefits Of CryptoCurrency.
Just to broaden your understanding, here are some amazing benefit you enjoy when you intend to start trading cryptocurrency.
There’s paperwork, brokerage fees, commissions, and any number of other special conditions which may apply when dealing with traditional transaction using our banking systems.
But not in cryptocurrency, Cryptocurrency are free to use and does not require a middle man.
All transactions costs are free and do not attract any commission.
2. Easier International Trade.
cryptocurrencies by their very nature are not subject to the exchange rates, interest rates, transactions charges, or other levies imposed by a specific country.
And using the peer-to-peer mechanism of the blockchain technology, cross-border transfers and transactions may be conducted without complications over currency exchange fluctuations, and the like.
3. Strong Security.
Once a cryptocurrency transfer has been authorized, it can’t be reversed as in the case of the “charge-back” transactions allowed by credit card companies.
This is a hedge against fraud which requires a specific agreement to be made between a buyer and seller regarding refunds in the event of a mistake or returns policy.
Dangers Of cryptocurrencies
There are ups and down’s to every business, cryptcurrencies are not left out, here are some very few dangers associated with ccryptocurrency business.
1. Crypto currency can easily be used for money laundering.
There are no official body and organization associated with monitoring cryptocurrency transaction, so therefore money can be easily laundered using this platform without anyone knowing.
how to make money buying and selling cryptocurrency
In time past, millions of Dollars have been laundered via Crypto Currencies.
2. Crypto currencies are volatile.
Cryptocurrencies are still struggling to enter the limelight as most government have not fully accepted it into their legal systems as a result of this crypto currencies are highly unstable, it can fall and rise at anytime.
A lack of acceptance is another of the risks you face when you use cryptocurrency. There are at least a couple of reasons for this.
Some businesses fear cryptocurrency due to the changes in value it has experienced. This makes them reluctant to accept it as a form of payment.
If you try to pay for purchases strictly with cryptocurrency you could end up out of luck with some businesses.
Additionally, cryptocurrency is not classified in the U.S. as legal tender. This fact alone causes some people and businesses to fear it, mistrust it, and not accept it.
3. Crypto currencies are easy to Loose.
Cryptocurrencies are stored in ledgers called Wallets. Wallets are online services that allow you store, accept and send any form of Crypto currency of your choice.
As sweet and interesting as this solution might be, you can easily loose your cryptocurrencies of you forget the login details to your Wallet.
So choose one Crypto wallet broker.
4. Cryptocurrency transactions cannot be reversed.
Cryptocurrencies are powered by block-chain technology which is the most safest and most secured for now.
Transaction carried out cannot be undone so be careful when sending out cryptocurrencies, make sure your verify the hash very well because once it is done.
it is registered on the blockchain server and it only requires you to locate the person you mistakenly made the transaction and convince him/her to send the crypto back to you and in most case you might not find such person again.
How to make money from cryptocurrencies.
There are 5 Crypto currency business opportunities that you can use to make money with bitcoin in Nigeria Africa, or anywhere around the world and they are
1. Crypto Trading.
There are millions of people who want to trade their cryptocurrency for physical cash.
This is the most common way to make money with cryptocurrency, it involves trading your preferred cryptocurrency for physical cash or other cryptocurrency or vice versa, it just like the modern Foreign exchange business.
2. Crypto Investment.
This involves buying any cryptocurrency of your choice with the sole aim of making profit in the nearest future.
Those that bought Bitcoin 10 years ago at $1,000 experienced huge profit as the price of Bitcoin skyrocketed in 10 years later.
If you want to invest in a profitable business, cryptocurrency may not be a bad idea at all.
3. Crypto Exchange Platforms.
Crypto exchange are platforms that people signup on to buy and sell any cryptocurrency of their choice to each other.
The cryptocurrency exchange may collect a commission on every transaction that happens or may even charge a monthly subscription fee to use their platform.
If you are a developer or have the passion and vision to begin your own cryptocurrency exchange business starting a crypto exchange business would be e very good business.
A perfect example of cryptocurrency exchange platform are.
Crypto Mining is a validation of transactions. For this effort, successful miners obtain new cryptocurrency as a reward.
Cryptocurrencies are mined, but digitally.To mine any kind of cryptocurrency, there are certain tools needed to perform the talk.
crypto mining can be very hectic and require heavy cash and equipment, If you have the financial capacity to invest in bitcoin mining tools, you could start a bitcoin mine and grow from zero to hero
5. Blockchain ICO (Initial Coin Offering).
Are you a Crypto currency lover and want to create your own custom currency, then this is the way to go around it.
This involves creating your own cryptocurrency and introducing a brand new cryptocurrency into or industry.
Essentially, it helps people launch their own cryptocurrency through the cryptocurrency network, thereby making the founder of the new cryptocurrency a part of the blockchain initial coin supply and owning a significant amount of the cryptocurrency whose value could either rise or fall.
Like any investment, make sure you do your research, invest wisely, and you could someday make a big hit from buying and selling cryptocurrencies.
The simple tip to making it big in Crypto Trading is to “Buy Low” and “Sell High”. Crypto Currency is still very much in it’s infancy so it very wise to buy now and hope for a better updates ahead.