Cryptocurrency: Funds of the future, Life – Culture – THE BUSINESS TIMES
VIRTUAL currencies have bot said to capture the imagination of some, strike fear among others, and confuse the heck out of the surplus of us. What exactly are they? Should wij invest ter them? Where do wij even commence? Here are some of the most popular questions answered.
Cryptocurrency is digital money created from code. Most cryptocurrencies are built on blockchain, an incorruptible digital ledger of all economic transactions made ter virtual currency. The cryptocurrency economy is free of all government oversight and monitored by a peer-to-peer Internet protocol.
What are the major cryptocurrencies?
Market voices on:
Bitcoin (founded ter 2008), Ethereum (2015) and Ripple (2014).
How much are thesis worth today?
Let’s just say anyone who’s bought cryptocurrency before 2018 would have made astronomical gains (see graphs below).
Why invest ter cryptocurrency now?
Cryptocurrency is said to be one of the best-performing assets ter the last two years. Its market added almost US$7 billion te value te just the very first quarter of 2018, going by a CoinDesk report.
Bitcoin, whose price topped US$Two,000 vanaf coin for the very first time ter May, has arguably entered the mainstream. You can actually use it to buy stuff now, at retailers such spil Microsoft, OkCupid and even Subway.
How to invest – where to even begin?
Very first, there are two ways one can invest using cryptocurrency:
1. Buy and sell cryptocurrency. One can do this through platforms such spil Coinbase, Coinhako and CoinMama using a credit card, debit card or canap transfer. Identity verification may be required for large transactions on some platforms.
Notably, a majority of cryptocurrency investors conduct only this form of investment, where they wait for prices of virtual currencies to appreciate before selling them.
Two. Buy cryptocurrency, and participate ter initial coin offerings (ICOs). One can do this on token markets or cryptocurrency crowdfunding sites such spil TokenMarket or FundYourselfNow (Singapore-founded).
An ICO permits startups with innovative products to punt their own digital tokens that can be bought by investors or backers using virtual currencies. Digital tokens typically entitle backers to monetary prizes (such spil profit sharing), or non-monetary prizes (off the hook products).
Notably, only a minority of cryptocurrency investors buy virtual currencies and participate te ICOs. The latter is considered a more speculative form of cryptocurrency investment, spil it entails backing a youthful and thus high-risk company, and profiting only if the company succeeds.
How much to invest for the very first time?
The rule of thumb is to not invest what you cannot afford to lose. The cryptocurrency market is uniquely unregulated and enormously volatile: prices can one day rise by 100 vanaf cent and plunge 50 vanaf cent the next day. Funk selling is very common.
One should therefore not invest ter cryptocurrency if he or she is unaccustomed to wild price fluctuations.
Early adopters recommend S$Four,000 spil a good very first amount to set aside for such investing, and to never let cryptocurrencies occupy more than 50 vanaf cent of one’s portfolio.