There are many ideas about Cryptocurrency, especially for those new to investing in this digital form of tender. And while there are hundreds of statistics available and various domain and web hosting services that focus on cryptocurrencies, everyone thinks a few facts are accurate.
1. No one knows who started it all
The name associated with the developer of Cryptocurrency is a pseudonym. Speculation has been given to those who may have started it all. Some claim that it was an individual, while others say it was a group of individuals.
2. Cryptocurrencies change drastically
Cryptocurrencies are not on a central exchange platform, which means they have somewhat elasticity to their worth. Bitcoin, for example, has changed 20% in less than a year. While bitcoin remains the top Cryptocurrency, it has shown how volatile the market is.
3. They may gain backing
Currently, Cryptocurrency does not have any government backing. Yet, with the increase in Cryptocurrency and low-cost domain registration for sites offering bitcoin services, it is predicted that the Euro will back Bitcoin by 2023.
4. There are several cryptocurrencies
There is a misconception that only a few cryptocurrencies are on the market. While there are ten leading cryptocurrencies, over 6000 variations are currently on the market.
5. Transactions are safe and efficient
Cryptocurrencies rely upon Blockchain technology. Due to the transparency of the wallet and having a record of the purchase and previous purchases, vendors, buyers, and sellers, the transactions are safer and more efficient than digital purchases with traditional online tenders.
6. No center of operations
Unlike many credit card companies' global currencies, there is no centralized base of operations for Cryptocurrency. The cryptocurrencies are housed on the servers of the providers. Since providers span globally, it is less likely that you will have a cyber-attack that devastates your wallet than that of traditional digital currencies.
7. Blockchain technology is joining the marketplace
Blockchain technology has shown its sustainability so much that over 200 major companies such as JPMorgan Chase, MasterCard, and Microsoft have started using it on various projects. Although these companies have not rolled out any significant projects, it is speculated that integration will be forthcoming.
8. Cryptocurrency has entered the trade market
Recently, cryptocurrencies have entered the trading market. In times past, investors have kept away from the digital coin/token exchange. Due to the thriving nature of the currency, however, investors have started to use bitcoins within trading. This has put cryptocurrencies within NASDAQ and NYSEMKT.
9. Globally Available but not globally accepted
Cryptocurrency is available on a global market. However, this does not mean that you can use your Cryptocurrency in all countries. Several countries around the world still hold a ban on using Bitcoin and other forms. These countries include Bolivia, Nepal, Morocco, and Ecuador, to name a few.
The USA remains one of the top investors in Cryptocurrency. Various domain and web hosting services catered to US investors have sprung up. Europe's market has also seen growth in recent years. As the global consciousness of cryptocurrencies increases, it is estimated that many countries will lift their ban on Cryptocurrency.
10. Cryptocurrencies are taxable
Just because Cryptocurrency is not backed or regulated by the US government does not mean that the profits are left unchecked. Any profits you yield must be reported to the IRS and taxed. Even if your investments are not with USA-based cryptocurrencies, if you are a resident of the United States, you must report any profits gained.
11. There is still many questions and speculations
Although Cryptocurrency has been around and thriving for more than a decade, many people still do not know its crucial functionality or if Cryptocurrency is legal. To clarify, Cryptocurrency is digital coins/tokens used to purchase goods, products, or services. While you may find ATMs for Bitcoins (about 14,000), transactions remain primarily online.
12. You can never lose your digital wallet
One of the biggest concerns with Cryptocurrency is that your funds can vanish or be hacked easily. Since a private key maintains your wallet, you are the only one to access the information. Blockchain technology minimizes the risk. Cryptojacking does occur, but this is very minimal and usually occurs in the mining phase.
13. There is no exchange rate
Because Cryptocurrency is on a global market, there is no variation between countries. For e-commerce websites, this is a massive advantage as you do not have to worry about varying profit margins.
14. The value of your Cryptocurrency is based on the Node Count
The value of your Cryptocurrency is based upon the number of active wallets associated with that variation. In addition, the blockchain's security features help determine the value of the currency. Because of the volatile nature of cryptocurrencies, potential investors are encouraged to invest with caution.
