There has been a surge of interest in cryptocurrency from people who have recently discovered it. The dramatic increase in bitcoin’s price has appealed to many to think about investing in cryptocurrency. However, cryptocurrency runs on different mechanics and this has got people asking a lot of questions. Among these questions, some are recurring and require general clarifications. Jason Guck is a popular proponent of cryptocurrency. His crypto campaigns date back to when it was wildly unpopular. He has discussed and promoted crypto in many seminars and workshops. I feel he has the best insights into these questions.
Here are Mr. Guck’s answers to the five frequently asked questions about cryptocurrency.
What is Cryptocurrency?
In a nutshell, a crypto is a form of digital currency that is secured through cryptography. Might sound fancy, but it is just money that exists in the digital world. Bitcoin is perhaps the most well-known crypto but a few others are gaining a share of the light for example Ethereum. Crypto’s underlying technology is known as the blockchain. According to Mr. Guck, the blockchain acts as a form of ledger where all the transactions are recorded. To learn more about the blockchain you can check out Mr. Guck’s courses related to cryptocurrencies.
All cryptocurrencies are decentralized. This means that no one entity is in control of the currency as you would have with normal money. The units used in crypto are generated using complex algorithms done by miners using supercomputers. The miners later hold the coins or sell them to prospective buyers.
How is Cryptocurrency Used
The use of cryptocurrency spiked in the previous decade with a rise in its use to sell and buy things. It is particularly amazing because of its potential to store and grow value. Unlike ordinary printed money, the number of bitcoin does not change. The only thing that changes is the value of each coin. The demand-supply economics is used to determine the value of each coin at a given time. The owners of crypto have a digital wallet that is used for online exchanges. As foreseen by Mr. Guck, digital facilitators of money transfer like PayPal, have adopted the use of crypto making its use fairly easy to use. You can still find more information on how crypto is stored.
Is Cryptocurrency Safe
Most people feel unsure about the security of money that is not tangible. This is understandable. However, Mr. Guck assures you, that crypto is as safe as your money will ever be. The blockchain stores every transaction which means that no transaction can ever go through without being recorded. Additionally, the system is decentralized which means that no one has access to crypto except for the owner. On top of that, every transaction is highly encrypted. Some people might say that cryptocurrency is not backed, is susceptible to fraud and therefore, it is not as safe as normal money. However, proponents of Crypto like Mr. Guck have been adamant about the safety of cryptocurrency.
Is Cryptocurrency Illegal
The exchange of cryptocurrency is not considered illegal. According to Mr. Guck, there are no violations whenever a transaction is conducted. It is a simple exchange that does not require a regulatory framework to safeguard any interests. The decentralized aspect of crypto suggests that everyone is in charge of their own and no one can take from another. The lack of a uniform regulation for this currency is what makes it peculiar to most investors. However, this is the face of the future.
How to Start Trading Cryptocurrency
Now that you know a bit about it, how do we start trading?
The first step is to identify how you want to trade. According to Mr. Guck, you can speculate prices using CFDs or buy crypto with the hope that they will increase in value. This step is followed by intensive research about how the crypto market works. You can then open an account and build a plan on how you intend to trade. Mr. Guck suggests that technical chart analysis is the best way to make decisions about your trade. There are also a few more details that go into the preparation to trade cryptocurrencies.
Most people against cryptocurrency have little to no knowledge about it. The truth is, the future of cryptocurrency has never been brighter. Listen to Mr. Guck and take a step toward a worthy investment.
For more information on how to safely and successfully trade in crypto, visit https://jasonguck.com/