Things you really need to know about Cryptocurrencies

Things you need to know about Cryptocurrencies 

The bitcoin has taken over the world of internet and has became one of the most searched topics on google in a very short span of time ,all because of its high value as compared to other currencies.By the time I am writing this post the 1 bitcoin is equivalent to 13543.39 USD, this alone tells us how powerful cryptocurrencies are.

As cryptocurrencies are becoming a global phenomenon more and more people are trying to buy them, increasing their demand and hence the market is now flooded with several crypto currencies.

But still crypto currencies were the most misunderstood topic throught the last year.People are still confused about it as china has banned bitcoin exchanges (and other countries 

may do it too) and countries like russia trying to make there own cryptoRuble.

With so much happening everyone irrespective of whether he will invest in the cryptocurrencies or not must know about them.Here are some things you need to know about cryptocurrencies. 

1).Their origin

The first cryptocurrency was created in 2009.

Bitcoin, was the first cryptocurrencyand since then, many other have been created often known as altcoins,(bitcoin alternative). and all of them use decenterlized system as compare to the centralised  system that is used by our well known currencies.

2).Who decides there value

The price of every cryptocurrency is determined by the demand and supply(at the exchange where it gets traded. ) of that cryptocurrency.But this not the only factor,price may be driven by many other things such as..,

     1). Supply and demand on the exchange

2). Utility of currency

3). People like you and me ( our perception )

4). Media and its Investors

5). Scams

6). Innovation.

7). Legal/Governmental affairs and bodies.

3).Should I buy some/Invest in cryptos

Lets get it straight, it is very risky currently. The question in the heading is most asked

and answered question in the world right now(ah...maybe not). You see Price of Bitcoin can fall up to 30% in a day and that is very normal. So its more like gamble, but in long term you will win something. Let's break it down..

 Do not under estimate or overestimate it.

People either over estimate or under estimate the cyptos, some look at form the perspective that once it costed  $1/BTC and some look at it as nothing but some new overhyped technology that they don't understand properly.But in reality, its just another type of investment, like when you invest in share market.Its not something which make millions from few dollars(atleast not so fast), but may double your money.

Invest only that much which you can loose, don't put your life savings

Time is everything

As market is open 24*7 and things changes very fast,  Even second of delay can cause a huge loss.

Buy when the prices are down and sell during the high time 

this will save you from losing money.The intermediate time is very important to identify here as knowing where the graph is going is very important.

4).Why and How to stay updated with them

As I said the time is very important in cryptocurrency market, so its really very important to stay updated. Now without wasting your time here the links to the some of the best source that i found very useful.

The Father Of All  -  Google

Google is the best way to find the news about any topic, and  for most of the things like knowing the current price or

just searching for latest news google will work fine

Reddit

Cryptocurrencies

BIG COLLECTION OF THE BEST CRYPTO NEWS SOURCES TO

Twitter

Search for Bitcoin-related hashtags on Twitter like #bitcoin, #cryptocurrency, and, for example, #BTC or  use Twitter’s search functionality.

On Android you can follow the coindesk app. I haven't personally used it but many people recommend but in general above sources must work fine.

Final Note

Whether or not you like it, understand it, cryptocurrencies are like internet in 1990s,

It may change a lot after 10 years from now but it will affect our lives to some extent, knowing then properly will help us prepare ourselves for near future.