The first cryptocurrency, Bitcoin, was launched in 2009, but the cryptocurrencies gained fame for the first time in 2017 when bitcoin’s price skyrocketed and reached from $600 per coin to $4700. This indicates that bitcoin offered 6 x returns on investments, which was when it gained prominence. Therefore, the year 2017 was highly lucrative for Bitcoin as at the end of 2017, its value crossed $19000, but as we all know, bitcoin’s market is extremely volatile; it dropped dramatically in 2018.
The details about bitcoin might have excited you, and you must have wondered whether if you are too late to invest in this volatile cryptocurrency. Before you take a look at bitcoin, you need to know that there are many cryptocurrencies that are no less than bitcoin and offer great benefits on investments. You must learn the basics of all cryptocurrencies and study them to know which is better to invest in according to your needs and preferences. Get the app of bitcoin trading by visiting https://bitcoin-investor.app/
Before that, let’s learn what cryptocurrencies are.
Cryptocurrencies are virtual digital currencies that can be used to make purchases and transfers online. Out of all the cryptocurrencies that exist, bitcoin is the most remarkable cryptocurrency, but there are many more in bitcoin’s competitions. Other most noteworthy coins that exist include Litecoin, Ethereum, Ripple, Bitcoin Cash and more. All these cryptocurrencies are built on a decentralized network, but each has its features and working methods. In addition, cryptocurrencies vary in their prices as compared to fiat currencies.
How are bitcoins created?
Bitcoins and other cryptocurrencies are different from traditional currencies. Conventional currencies like the U.S. dollar are easy to understand as these were initially tied to gold and other precious metals. The U.S. dollar is trusted more as it is backed by credit and the faith of the government. But the case of cryptocurrencies is entirely different as these aren’t backed by any government or precious metals. Still, the crypto coins are mined by high processing computers and, in fact, by a massive network of computers known as nodes.
The network of computers run according to time as the complex equations keep on running, which are required to be solved to mine bitcoins. New bitcoins are rewarded to computer owners known as miners for their contribution to the mining process.
Do cryptocurrencies make risky investments?
Any asset or government doesn’t back cryptocurrencies, and the value of the cryptocurrencies is based on what users are willing to pay and on the price at which the currency is traded. So while bitcoin grew around 600% in 2017, it is highly volatile and can fall easily or crash down. This is why bitcoin investors must take careful steps and invest the amount they are prepared to lose.
Since the rise of bitcoin in 2017, it has failed about half the price, which proved that it is a risky investment. Even the CEO of JPMorgan gave a statement in 2017 that digital currencies are a complete fraud and are not real.
Should you invest in bitcoin to earn a profit from it?
The fans of digital currencies are rising across the world, resulting in the increasing value of bitcoin over time. People that are the early investors of bitcoin have earned huge profits, and you are never late for this game. You can choose to invest in bitcoin or other cryptocurrencies to earn a profit, but you need to be highly careful because the market of cryptocurrencies is highly volatile. Today, there are over 4400 cryptocurrencies that exist in the bitcoin market, and there are multiple popular bitcoin alternatives that include:
Litecoin
Litecoin was launched back in October 2011, and the working of Litecoin is identical to bitcoin. It is one of the well-known digital currencies and is considered a stable cryptocurrency.
Ethereum
Ethereum was released in 2015, and it is the second-largest cryptocurrency that works more like bitcoin. It is one of the successful coins that facilitates the feature of decentralized applications and smart contracts.
While many other cryptocurrencies, including Dogecoin, Ripple, Dogecoin, SiaCoin, Monero and more, hold low market value than popular cryptocurrencies like Bitcoin and Ethereum.
