Now everybody is well aware of what cryptocurrency is and what it is capable of doing. There is no doubt that this digital currency has changed the lives of it many people. Cryptocurrency is a virtual currency and volatile. It is hard to predict, but last week’s sudden decline in value has shocked its users. Before going any further, we will discuss the different cryptocurrencies.
What is Bitcoin?
Bitcoin is an electronic currency that does not exist in physical form. Bitcoin was originated in January 2009 by software developer Satoshi Nakamoto. He visioned creating a digital system that is independent of Government and Banks.
Unlike physical currency, these are not run by banks. Instead, they are run by a decentralized authority that records transactions in an apportioned ledger called a blockchain. This digital currency is very volatile, can earn a profit if the market is correctly anticipated.
How to buy Bitcoin?
You want to try investing in Bitcoin, buy bitcoins for the long term believing that its price will increase regardless of the ups and downs. Then, you want to try trading, purchase and sell bitcoin in a short time whenever you think it’s suitable for profit.
It takes no more than 20 minutes to buy a bid coin as long as there is an internet connection. This process of purchasing bitcoin involves the following
⦁ Download Coinbase and make an account.
⦁ Confirm your email by clicking on the confirmation link.
⦁ Please secure your account by connecting it with your mobile. It’s a two-step verification process where you will be given a code via SMS.
⦁ You have to submit your details, profile photo, and address to confirm your identity.
⦁ After verification, you will reach the dashboard.
⦁ Click “Add a payment method” or go to the setting.
⦁ After the card verification process, you can proceed to buy Bitcoin.
⦁ In the menu, select “Buy/Sell” also confirm the option of Bitcoin.
⦁ Now enter the amount you want to buy. Click ” Preview Buy” to see the whole transaction.
⦁ At last, click “Buy now,” and your wallet is filled with Bitcoin.
You have bitcoin now; decide how you are going to earn profit through it. There are fluctuations in bitcoin prices, so be good observant. Find out the present-day bitcoin price to have a handsome amount of profit.
What is Dogecoin?
Dogecoin is an Altcoin (Alternative to bitcoin) that gained popularity in this pandemic. In 2013, it was created by Billy Markus and Jackson Palmer. They made the doge internet meme into a cryptocurrency for the growth of altcoins. Despite its sarcastic nature, it was given birth as a joke, became a well-known investment in cryptocurrency due to its low price. There was a tremendous increase in return from dogecoin in the year 2020 and left bitcoin behind. Unlike bitcoin, dogecoin has a 1-minute block interval which ultimately makes it faster than blockchains.
What is Ethereum?
Ethereum, the second-largest cryptocurrency, is a fully decentralized network having many computers running under it. It is a platform but not a currency that connects people without a central authority. Ethereum endorses the blockchain automation of bitcoin and has contractual functionality.
Ethereum is a do-it-yourself platform for decentralized programs known as Decentralized Apps (apps). The most effective way to earn money from it is by long-term investment. Convert your fiat currency into Ether when the cryptocurrency token is underrated in the market.
Why is cryptocurrency crashing?
The price of cryptocurrency is falling below as China cracks down on cryptocurrency mining. China is not in favor of bitcoin mining, the process which is involved in building new units. In May, China’s government approved the ban on these dealings. In addition, the people’s Bank of China’s WeChat account published a statement regarding internet industry associations and banking views that banking companies shall not accept or offer services relating to cryptocurrencies. It further added that cryptocurrencies are not real and are not and should not eligible to be used as a currency.
The resulted in a fall in cryptocurrency
⦁ Bitcoin regularly started falling from last week, had reached $41,000, and is at $33,000 now.
⦁ Ethereum followed the same lead and fall below $2,000 from more than $26000.
⦁ Dogecoin has also experienced a fall and decline in value at around $0.25.
Out Come
Cryptocurrencies are volatile that makes it extremely difficult to foresee them. Before China’s ban, it was hard to believe that cryptocurrency with experience such a decline. Nevertheless, it is no doubt a risky investment.
In the last week, both Bitcoin and Ethereum have experienced a hard blow. Dogecoin, which was a success, is now experiencing a sell-off. Only the short-run dealers are at an advantage as trading size has risen across the interchanges.