Investment in Cryptocurrencies and the global trend • [Eng]
Since 2017, investing in cryptocurrencies has been a global trend, and the number of investments in these virtual currencies continues to grow.
A cryptocurrency is a digital currency that is used to manage transactions. Why be a virtual currency there is no bank to regulate its operation, because the technology with a chain of blocks provides transparency in the processes. There are more than 1500 virtual currencies and every time a digital mathematical process called ICOS is created and carried out
Making money with cryptocurrencies is possible, but you have to know which one to bet on and how to bet. In this sense there are different ways of investing in them, from trading with cryptocurrencies to mining virtual currencies. Choosing the asset and the form of exploitation is key, especially when they are so volatile and have so much risk.
The second way to invest is to mine cryptocurrencies. In other words, join the group of people who seek to solve the mathematical algorithms that will give you a fragment of the digital currency that you are mining.
To become a virtual miner. To start you will need a machine, a computer. In theory, any computer serves but in reality, if you want your activity to be profitable you must have a specialized machine.
The more value you have the currency you want to mine, the more power the machine will need, the more electricity it will consume and the more noise it will produce. The reason is that there are many more mining and if your machine is not powerful or you do not have many machines, it will not be profitable because you will spend more energy to get it than you will get to mine.
In recent times an alternative has arisen to mine cryptocurrencies without a computer. It's about cloud mining. In this case what you do is to hire the power of mining that you want in a mining farm. The greater the power, the greater the profits. So, instead of having equipment in your house dedicated to mining cryptocurrencies, you pay because they are elsewhere. Obviously, the performance will be lower because you will pay the Cloud Mining company because you rent the machines or, rather, they give you mining power.
Among the currencies that can be invested in the future are:
Bitcoin is the virtual currency pioneer in the world of cryptocurrency. It is already used for the purchase of products in many companies. Its value has increased exponentially and decreased in recent years to exceed $ 5,000. It should be noted that there is a total limit of 21 million Bitcoin and then no more can be manufactured.
Ethereum is the system that controls the ether currency. It is considered one of the most important alternatives to Bitcoin. It is characterized by having one of the currencies with the highest transaction speed and is easier to get than Bitcoin. This currency has no limit and includes the concept of intelligent contracts, which allows secure transactions without the need for an intermediary.
Litecoin works very similar to Bitcoin, so many consider it its little brother. The simple use makes it perfect for people who have less experience in the world of cryptocurrencies. It has a limit of 84 million Litecoins.
Ripple is the virtual currency used by banks, to which it offers a series of advantages. In this way, banks skip all kinds of government controls to carry out their transactions. You have the objective of creating a decentralized system so that banks can easily access external financing.
If you are thinking of investing or diversifying your investment portfolio and are looking for other possibilities to increase returns and reduce risks, cryptocurrencies may be a good idea. Evidently to be successful you must know how to choose.
Publicado en el blog de Cryptofera
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