Initial knowledge – [Basic Instructions #1]
WHAT IS CURRENCY? WHAT YOU SHOULD KNOW FIRST
Basic Instructions – Part 01
Like any currency you already know, cryptocurrency can be used to buy goods and services. But unlike other currencies, cryptocurrency is digital money combined with cryptography to protect your online transactions more securely, further (across borders) and more personally …
While cryptocurrencies can be used for a variety of purposes, most people’s interest in cryptocurrencies is mainly driven by the profits from buying and reselling them at a higher price. Since this market is still very new and wild, there is no shortage of traps and nifty tricks that you yourself do not know you are involved.
If you are someone who has been in the market for a while or is just starting out to know and learn about the cryptocurrency market, the articles are collected in 2 parts of the series.A beginner’s guideThese are all worth your reference.
Here are the first few questions or things to look out for when getting started:
TABLE OF CONTENTS
- What is electronic money?
- How many cryptocurrencies are there and how valuable are they?
- Why are cryptocurrencies popular?
- Is Cryptocurrency a Good Investment?
- How do I buy cryptocurrency?
- Is cryptocurrency legal?
- How do you protect yourself in the cryptocurrency market?
1. WHAT IS CURRENCY?
Electronic money is a new means of payment that has become increasingly popular in recent years and can be used for online exchange, as an asset, or as the main platform for a service.
Many companies or projects in the cryptocurrency market have issued their own cryptocurrency, often referred to as a token, which can be specifically traded for goods or services that the company or project is offering. Think of it like a coin or a slot that you play in an amusement park, you have to use your real money to exchange cryptocurrencies and access goods or services from there or exchange them with others on the common market.
Cryptocurrencies mostly work with a technology that is collectively known as blockchain. Blockchain is a decentralized network technology that extends over many different management computers and whose main task is to solve puzzles, then record transactions taking place in the network or various tasks in a block and assign this block to the chain that has already been formed (accepted by all).
The attraction of this technology lies in its very high level of security.
2. HOW MANY CURRENCIES ARE OUTSIDE AND HOW VALID ARE THEY?
To date, there are almost 5500 different cryptocurrencies that are publicly traded CoinMarketCap.com, a well-known website for market research in the cryptocurrency market. And in the future, cryptocurrencies will continue to multiply and capital through services like. procure
- ICOs: Increase in initial capital by the general community.
- IEO: Increase in initial capital through partners who are cryptocurrency exchanges.
- STO: The form of raising capital is currently not popular, as is the IPO.
The total value of all cryptocurrencies is $ 260 billion at the time of this writing, according to CoinMarketCap, and the total capitalization of the most popular cryptocurrency, Bitcoin, is currently $ 175 billion.
3. WHY POPULAR CURRENCY?
Cryptocurrency attracts its followers for several reasons. Below are some of the most popular.
- The most enthusiastic supporters of cryptocurrencies like Bitcoin are Currency of the future. More and more people are stepping onto this path to buy and hold as many bitcoins as possible before they become more valuable.
- Some other proponents believe that cryptocurrencies will partially lift central banks’ money controls. As history has shown, over time, cash denominated in a country will tend to depreciate in value due to inflation.
- This is an important core technology development group, proponents of the technology behind cryptocurrencies, blockchain technology (or other similar technologies) as it is the system that is managed and recorded over a decentralized network without anyone officially controlling it will be more secure than current traditional payment systems.
- A large number of speculators accumulate cryptocurrencies because they will appreciate in value and are not interested in the long-term introduction of this currency (which makes up a large part of the market). This is why most of the people enter the market, they may be disappointed and leave as soon as they realize they have been scammed, but there are also people who will stay who see the potential of the market; cryptocurrencies like that 3 groups of people I’ve mentioned about. Hopefully those of you reading this will stay and develop the community together.
4. IS CURRENCY A GOOD INVESTMENT?
Cryptocurrencies are likely to appreciate in the future, but many investors in the traditional market see them as speculation rather than real investment. What is the reason? It’s basically like a real world currency, but cryptocurrencies don’t generate cash flow. To make money or to be profitable, someone has to pay more than you used to deposit.
This is what the “Who’s the Fool” investment theory says. It is in stark contrast to a company that, if well managed, increases in value over time by increasing the profits from the products and services it offers and the cash flow from those activities.
For those of you who see cryptocurrencies like Bitcoin as the currency of the future, it should be noted that it needs stability as a currency.
That’s right, cryptocurrencies need price stability as a currency so that traders and consumers can determine a fair price for a commodity. Bitcoin and other cryptocurrencies on the market (with the exception of stablecoins) always lack one thing, namely stability. This is clearly evident from their price development.
It is this price movement that is puzzling. If Bitcoin could have a much higher value in the future, people today would be less inclined to spend and circulate it, which would make it even less viable as a currency. . Why spend 1 bitcoin when it could be worth three times its value next year?
Even so, there are many sources of opinion in the crypto community that Bitcoin should become a store of value in the future instead of turning it into money.
5. HOW DO I BUY CURRENCY?
There are currently only a handful of cryptocurrencies that can be bought with cash, including Bitcoin, Ether, and a few others. Most cryptocurrencies require you to be in Bitcoin or a USD denominated cryptocurrency such as USDT, USDC …
To buy cryptocurrency, you need to be prepared. We’ll talk about this in more detail in the next few articles. Basically, you need a wallet (a dedicated wallet for storing cryptocurrencies), an online application, in order to be able to store, receive, transmit and check incoming and outgoing transactions in your wallet.
You’ll need to create an account with a cryptocurrency-specific exchange and then transfer real money to buy crypto for sale like Bitcoin or Ethereum.
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6. IS CURRENCY LEGAL?
There is currently no clear answer to the legality of cryptocurrencies. In the world there are many countries that are gradually legalizing it in business, but it is still on a cautious level. There are countries that completely ban its use, typically China here. And most other countries are keeping an eye on the other, but the legal framework is gradually improving in many countries.
In Vietnam, cryptocurrency is not considered an official currency in the economy. Any transaction with cryptocurrencies can be considered illegal. You can buy it and keep it for the future, but not use it as a recognized currency.
Also, you should think more carefully about how to protect yourself from market scammers who view cryptocurrencies as a win-win opportunity, but one piece of advice for you: “As a buyer, you should be careful. “
7. HOW DO YOU PROTECT YOURSELF IN THE CURRENCY MARKET?
This is a very important topic, it is vital if you are to go far and be successful in this market. Here I will just introduce the basics for you, details will be written in the next articles.
Mainly, we will be focusing on the question of how to protect your money from the dangers of the market. It can be mentioned here that you stole money, lost money by accidentally losing your password, lost your wallet storage code, disclosed important information … or the project you invested in failed has suffered an error. Dangers in the system and many other reasons that I cannot list here …
Yes, danger and danger are always out there.
DISCLAIMER: This article should not be viewed as financial advice. All information is for …