We invest

Cryptocurrency – what are they and is it worth buying them?

Cryptocurrency
Written by loan

Bitcoin, litecoin, Ethereum… That it was an unreliable surrogate financial or investment instrument with ultra-high potential returns? Whatever was the answer to the question, for a new phenomenon, it is useful to follow.

All cryptocurrency is approximately nine hundred. Analyze the situation-for example, the most famous of them.

Where does cryptocurrency?

Bitcoin (aka btc, BTC, bitcoin, bitcoin) is a unit in the same payment network that allows you to transfer from purse to purse through the “world wide web”. This electronic system is not controlled the economic levers of a state, it is decentralized.

For decentralization to avoid failures — the fake payments, etc. — is called mining. Mining transaction verification, which involves everyone. As a reward for this procedure, the network creates new bitcoins through a special mathematical algorithm. The user who confirms the first transaction block, gets a prize. Now, note that to obtain such an award is not easy — it goes to the people who combine the power of computers in the farm and bottom on a regular basis.

Bitcoin buy, store, sell.

Any person has the right to create a wallet for cryptocurrency, just click the relevant online services; especially well-known blockchain blockchain.info.

The total number of coins is limited (the program code will not allow you to “produce” more than 21 million of BTK.), and the number of wallets no.

The pros and cons of bitcoin

The cryptocurrency market is very young, this explains his characteristic shortcomings.

First, the inexperienced players on it — they are either too addicted or too cautious. As a result, the exchange rate fluctuates greatly. However, interest in digital money is already manifest and professionals who are able to some extent to adjust the setting.

Secondly, this market is not a reliable regulator. The attachments on it are not insured: the investor runs the risk of instantly losing everything to discover that to make a complaint no one (for example, imagine someone hacked into your crypto — where are you going to complain?);

Now about the benefits of electronic currency:

  • it is convenient to translate: the operation is performed very quickly and without intermediaries;
  • cryptocurrency wallets are not directly connected with the name of the owner.

In some countries it is legally allowed to pay with bitcoins. Their turnover In Russia — the “shadow” area of the law. No institution in our country is not yet able to officially accept the cryptocurrency as payment for goods or services.

Public authorities aware of the issue and are set up to streamline legislation in this area.

Where and how to buy digital money?

Now the Russians acquire cryptocurrencies, hoping to earn an income due to growth of their course.

Bitcoins are sold on the Internet. Exist:

  • special online exchangers;
  • bitcoin faucets (resources that pay digital currency for performing certain types of work);
  • cryptocurrency exchanges.

Stock exchanges differ in the accessibility of the interface, the volume of trading, the rules of identification and other parameters. Sometimes they display a valid cryptocurrency, and sometimes real money (say, on a mobile phone).

The transfer of money to the stock exchange involves a number of disadvantages. Transfer fees e-wallet is quite high, and to use the services of the Bank is obtained only in the case of a lot of luck. Banks refer to transactions of this kind with suspicion and try to evade them.

Councils to investor

Some experts believe that bitcoin in the medium term will continue to grow — for example, this opinion was expressed currency strategist of company “Alpari” Vadim Antonov (see economic information Agency “Prime”, “Bitcoin — where to stop?”).

However, it is often possible to hear a very cautious views about the future of cryptocurrencies.

Senior analyst IR “freedom Finance” Vadim Merkulov (gazety “the Russians lay their bitcoins on old age”) recommends:

If you want to keep and increase their investments, the cryptocurrency, not the best way. The risks in this market is several thousand times higher than, say, the risks of investing in the shares of the US market.

Indeed, many cryptocurrencies are not ready to a jump in demand at least for technical reasons — the sharp increase in the demand for complicated requests for translations, will panic and the price drops. In the fall of 2017 have already been a considerable decline after its recent impressive growth.

Practice also shows that bitcoins would be sensitive to negative public statements by the “powers that be”. When the head of JP Morgan Chase James Dimon at a major banking conference called crypto currencies money out of thin air, they fell by 10%.

Perhaps, most appropriate for novice investors approach to new money describes the expert of investment company “ZERICH capital Management” Oleg Yakushev (The Village, “Should I buy bitcoin”):

As in the case of any investment asset, we suggest to follow the famous rule of “Not putting all your eggs in one basket”. Since in this case we are talking about very fragile eggs, it makes little sense to invest in bitcoins more than 10% of the available funds.

You can try to risk money, without which you will be able to do. Do not rush to buy bitcoins; it might make sense to give preference to other, less popular and less “overheated” currency.

About the author

loan

Leave a Comment