Cryptocurrency these days doesn’t need a long introduction. Everyone knows that it is the new money that gains steam more and more.
The digital currency was indeed a breakthrough in the financial world. Its opportunities make payments and withdrawals faster, easier, and safer in many ways. Its numerous pluses make it a popular investment and a goal for trading. Still, we strongly recommend you find out more about these coins if you plan to trade them for your earnings.
6 Truths About Crypto Coins and Their Peculiarities
Here are some facts you might not know about cryptocurrency and that may help you decide if it is a good investment for you personally.
Fact 1. Crypto coins possess excellent processing power.
The Bitcoin network can handle over 80,704,200 petaflops which represent operations per second adding blocks of Bitcoins. This makes cryptocurrency even faster than the world’s fastest computer, the Summit.
Fact 2. Bitcoin has a limited supply.
This is the upper-end number of Bitcoin that can ever exist. The number is 21 million, and more than 17 million of them are already circulating. Still, it doesn’t mean Bitcoins will no longer be popular. The thing is that the rewards that miners get for mining coins get smaller every year, and thus, Bitcoin mining takes place more seldom.
Fact 3. There is a Bitcoin ban in some countries.
Not the whole world accepts cryptocurrency yet. For instance, Iceland, Bangladesh, and Bolivia don’t allow Bitcoin use at all. Other countries are suspicious about this coin, too, and call for their citizens to be careful buying or paying with Bitcoins.
Fact 4. If you lose the private key, you lose everything.
It is not good news for scatter-brained people, but if you happen to forget or lose your key for the crypto wallet, you lose the funds too. Many sources claim that over sixty percent of all Bitcoin wallets are not functioning or, in other words, are ‘ghosts.’ This means people lost their wallet keys and, sadly, can’t get their Bitcoins back.
Fact 5. Safety is never a guarantee.
Generally speaking, making crypto transactions is safe. Yet, even the most reliable service is possible to hack. Purely out of the digital nature of this money, they have always drawn extra attention from hackers. This is proven by several cases with MapleChange, Zaif, Bitcoin Gold, and Bithumb, which make only a small part of criminal cases when thousands of Bitcoins were stolen.
Fact 6. Mining takes enormous amounts of energy.
If you didn’t know this and thought Bitcoins were a more nature-friendly version of money, it’s time to break this illusion. Hardware for mining takes much electricity (5,000-kilowatt hours). It encourages more CO2 emissions, which, according to the Bank of America research, is the same as the carbon footprint produced by almost 2 million cars.
Perhaps, after digesting these facts about digital currency, you might find it a tricky business to invest in. Still, our mission is not to lead you away from investments but rather warn about possible dangers and risks and keep you more informed in this sphere.
As a final statement, we want to tell you that crypto investments are pretty ambivalent. Apart from hazards, it has a very attractive side. You can earn a lot and multiply your funds if you invest in the right coin at the right time, and you can lose it all if the system gets hacked.
Using legal exchanges still increases your chances of trading successfully. Consider Coinbase, Binance, Kraken, or BTC Superstar services to remain safer. So, if you ever decide on trading, choose one of these official places. The last option, Bitcoin Superstar, allows you to register very quickly. After you log in, you can make easy exchanges using helpful tools and cooperate with proven and practical brokers.
Anyway, we want you to understand that doing your research and being an educated, prepared, and critical cryptocurrency user can help a lot. This alone is your guarantee of more successful trades and thoughtful investing, which will turn out as profit.