Dealing with cryptocurrency: my experience

Blockchain innovation underlies Bitcoin and numerous other digital currencies. It depends on a public, constantly refreshing record to record all exchanges that happen. Blockchain is pivotal because it permits exchanges to be handled without a focal position—like a bank, the public authority, or an installment organization. The purchaser and dealer associate straightforwardly with one another, eliminating the requirement for confirmation by a confided-in outsider mediator. It accordingly removes expensive mediators and permits organizations and administrations to be decentralized

Earlier this year I started seeing many articles about cryptocurrency. Around the time bitcoin was worth between 40000 and 50000 dollars. During this time, financial analysts predicted that it would even hit 100000 in no time. My interest started to grow since I knew nothing about cryptocurrencies. I started researching using google about the same.

I started reading all the articles about cryptocurrencies while also following any news about the same. My first take was that it was a get-rich-quick scheme when I saw all the price fluctuations at the time.

I have been in the Crypto game for about a month, taking notes on the coins and their development.

Opening an account

There are many crypto trading platforms to choose from depending on what you want or need. I picked binance since it is broadly utilized and upholds numerous digital currencies. There are two choices when purchasing cryptographic money. One is through P2P exchanging. The other one involves third-party installment.

P2p exchange is whereby an intermediary connects the buyer and the seller. In this case, the buyer and the seller know each other. In a third-party installment, the company buys and sells the cryptocurrency.

I decided to use p2p since I did not have a third-party payment account. I wanted to buy using PayPal since it is the most used form of payment in the world. I proceeded with that. The entire process of opening and funding my account took me about 25 minutes.

The next step was to decide which cryptocurrency to invest in. you can either choose to spread your risk or go with one coin. In my case, I decided to invest in bitcoin since it is the most famous cryptocurrency. Also, the online adverts promised a high return on investment.

Making money

The first after buying bitcoin, I could barely focus on anything else. I kept checking my phone now and then to see if my money had disappeared. (I was a bit skeptical since I thought it was a pyramid scheme.)At the end of the day, I checked my account for the last time before going to bed and noticed nothing had changed. The following morning I checked my account and saw a balance of $248.95! I could hardly believe my eyes. In just a span of less than 24hours, I had gained an incredible $48.95.

I started imagining all the things I could do with my newly found extra income. dreams of me being a millionaire at such a young age started floating in my mind. Over the next couple of weeks all I could talk about was my newfound haven; cryptocurrency.

For 3 weeks, I saw my investment rise by an astronomical 201%totaling up to more than 40000 dollars. I was over the moon at this point and was thinking about cashing out. But then my greedy side has worn over me. I started thinking whether I have made this much in such a short period, what would I stand to gain if I went long instead of short?

Using cryptocurrency in day to day operations

After making so much money in cryptocurrency I decided to test the practicality of using cryptocurrency in my everyday operations. Since I’m in Kenya I could not find many businesses which would accept cryptocurrency. However, new small businesses, especially those owned by young people have started accepting payments in cryptocurrency. It is a bold move considering the volatility of cryptocurrency.

Other places you can spend your cryptocurrencies are mostly online stores and gaming sites. I found out that transacting with cryptocurrency when dealing with online sites is quite popular. Some gaming sites offer their rewards in cryptocurrency.

Losing can be very easy 

It is not always an upward spiral when it comes to cryptocurrency. This is due to its volatility which makes it highly unstable. As the prices went up and down, so did my earnings. The market is highly dependent on current affairs so a small change affects the prices.

For example, when Tesla CEO Elon Musk announced that Tesla will not accept bitcoin since most mining pieces of equipment use fossil fuel, the value of bitcoin depreciated. This is when I started losing my investment. This trend continued for several weeks until I decided I had had enough. I then sold my bitcoins and I’m happy to say I was able to exit with a healthy profit.

Peer to peer trading

Peer-to-peer trading is probably the greatest advantage of digital forms of money in that they don't include monetary establishment go-betweens. For vendors, the absence of an intermediary helps bring down exchange costs. There is a gigantic benefit for buyers if the monetary framework is hacked or again if the client doesn't confide in the customary framework. For examination, if a bank's data set were hacked or harmed, the bank would depend on its reinforcements to re-establish any missing data. With cryptographic forms of money, regardless of whether a bit was compromised, the leftover segments would keep on having the option to affirm exchanges.

Conclusion

The slightest bit of counsel I would provide for individuals is that putting resources into general isn't an easy money scam. It requires some investment, industriousness, a solid attitude, and a craving for a hazard to receive the rewards of any venture.

 Likewise, you should reliably investigate where you put your money and find that it is so normal to take a couple to get back some poise when there could be no other choice.

Presently, I'm certain there is A LOT more to discuss with regards to Crypto and its spot on the world today and its future, yet that is for some other time.

Another advantage I found of using blockchain is that the ledger guarantees that all exchanges between advanced wallets can figure a precise equilibrium. All exchanges are checked to ensure that the current high-roller possesses the coins utilized. This public record is additionally alluded to as the exchange blockchain. Blockchain innovation guarantees secure advanced exchanges through encryption and "savvy gets that make the substance practically unhackable and bereft of misrepresentation

When dealing with cryptocurrency trading companies caution should be applied. A great deal of exchanging and venture tricks have jumped up since the coming of Bitcoin particularly since the pandemic since many individuals were searching for monetary security. It was easy to convince people times were hard. The people handling these scam schemes have successfully taken advantage of people’s little knowledge about cryptocurrency investment. Due diligence must be exercised in dealing with trading companies.

You should consult a professional financial advisor before investing your hard-earned money. Cryptocurrency is one of the best ways of earning a passive income. This article contains general information only.