The pace of all digital technologies has accelerated significantly over the past 20 years and continues to grow exponentially. Digital technology and education are increasingly intertwined with everyday life: from education to financial management. and health. The rapid development and emergence of digital technologies are driving political participation in innovation and new applications that often profoundly affect our lives. While digital presents many different opportunities and aspirations, as more people use it to purchase goods and services online, it is also important to understand and mitigate the challenges it poses to society. Watch Bitcoin, the most popular digital currency, rise in value in recent years, making it a popular investment for those looking to make a quick buck. However, digital currencies are not regulated by any central authority, which means that they may be subject to fluctuations in value. This makes them a risky investment capital, but if the market moves in your favour, you can be well rewarded.
What are digital currencies?
They are virtual currencies with serial numbers that exist only in electronic form, are not bound by any financial institution in the world, and are traded online. One of the most famous digital currencies is Bitcoin, which is traded on exchanges such as foreign exchange, etc. It has become a means of payment for online purchases and transfers. It relies from person to person on technology that transfers funds and payments securely without the need for a third party such as a bank or financial institution. Bitcoin is the most popular digital currency, created in 2009. To some extent, many other digital currencies have been developed since then, including Ethereum, Litecoin and Dogecoin. These currencies are often used for online transactions and can be bought and sold on cryptocurrency exchanges.
It's history:
The RSA algorithm appeared in 1977, invented by Leonard Adelman, Adi Shamir, and Ronald Rivest of the Massachusetts Institute of Technology, who announced and published their invention paper
• In 1993, mathematician David Chum invented what was said to be the first crypto-based electronic currency.
• In 1996, E-gold was launched, the first gold exchange and trading site, which required opening an account and using it to buy and sell gold.
• In 1999, the first electronic bank, PayPal, was launched, which facilitated the transfer of funds over the Internet.
• In 2008, Japanese programmer Satoshi Nakamoto announced the first digital currency.
• First traded between Satoshi Nakamoto and Hal Finney in 2009
• New currencies appeared in 2015, namely Litecoin and Ethereum, which raised $75 million.
• In 2019, Facebook announced its own currency, Libra, which will be launched in 2020.
Types of digital currencies
Virtual currency:
The European Central Bank defined a virtual currency in 2012 as an unregulated digital currency, usually issued and controlled by developers, used and accepted by members of a particular virtual community. The US Treasury defined it more succinctly in 2013 as an effective medium of exchange as a currency in some contexts, which does not have all the characteristics of real money. According to these definitions, the main feature of no virtual currency is its status as legal tender.
Cryptocurrency:
A cryptocurrency is a digital token that relies on cryptography to link digital signatures together for token transmission and peer-to-peer networks and decentralization. In some cases, Proof of Work schemes are used to create and manage coins.
How to use it:
Digital currencies are used for direct commercial transactions, electronic payments and payment transactions, as well as the rapid transfer and transfer of funds between users, without intermediaries, with minimal cost and effort, without the need to familiarize themselves with the geographical or sovereign borders of the country. It is not subject to the constraints of its local laws, even without considering the value of the country, which is its national currency. The most important question is how do these currencies work? How is it distributed? Cryptocurrencies are often decentralized, which means that no government or agency can control their production, but rather they are issued through a technology called blockchain.
Blockchain is defined in the book (Blockchain Revolution) as the electronic ledger for recording financial and economic transactions, keeping records of all things of value, encrypted for each user in the form of blocks, then all the blocks are linked together to form a distributed block chain and stored on all private computers to users all over the world, making hacking or tampering almost impossible because, as mentioned, it is user-specific, making it impossible to change or
Delete it, except by controlling all users around the world in computers, which is currently not possible.
Types of digital currencies and their prices
Some people think that there is only one digital currency, Bitcoin. However, it is not. With more than 6,700 digital currencies traded publicly, the cryptocurrency market continues to grow every day, according to CoinMarketCap.com. While Bitcoin was the most popular and valuable digital currency, there were a number of companies that started issuing their own currency. that you can use to purchase the services and products of that particular company. It's like the points you get when you buy something from a particular website, you can calculate the actual amount of the product you bought from the same website (and not from any other website). Below is a list of the most popular types of digital currencies and their prices,
With Bitcoin at the top of the list with a price or market capitalization of around $969 billion.
• Bitcoin: market capitalization $969.9 billion.
• Ethereum: with a market capitalization of $222.3 billion.
• Tether: valued at $33.1 billion.
• Binance Coin: $30.5 billion.
Cardano: $28.3 billion.
• Polkadot: $28.1 billion.
• XRP: worth $24.4 billion.
• Litecoin: worth $15 billion.
• Chain Link: worth $13.3 billion.
• Bitcoin Cash: $13.1 billion
The importance and advantages of digital currencies There are many reasons that made digital currencies attract the interest and support of many people around the world, including:
1- A potential future currency Many cryptocurrency proponents believe that the latter, especially Bitcoin, will be the best. The official currency of the future, so they are now buying fast before their value and price rise. But will this really happen? We will answer your questions about investing in cryptocurrency in the next section!
2- The advantages of decentralization: Digital currencies are not linked to any central authority or entity (such as a bank), so in this case digital financial transactions do not need a broker to do them, and this eliminates transaction fees, which is the matter of many cryptocurrencies. Supporters like. Also Read: How to Start a Successful E-Commerce Business?
3- Security and Difficulty of Counterfeiting As we explained above, digital currency is based on blockchain technology because the technology is decentralized in registration. Money transactions and remittances are among the safest ways to pay and transfer money because the blockchain network is not easily hacked and cannot be forged. This makes cryptocurrency the first choice for many people.
In order to understand which of these strategies may or may not work for you, you should follow and monitor each trading strategy without breaking the rules you have set. It is also useful to create a trading diary or ledger where you can analyze the performance of each strategy.
1- Active Trading Strategies
Active strategies require more time and attention and are described as active strategies because they involve continuous monitoring and ongoing portfolio management.
1. Intraday trading
2. Trading as directed
3. Swing trading
4. Quick speculation
2- Passive Investment Strategies
These strategies should be followed, but to a lesser degree than active strategies, as portfolio management requires less time and attention.
1. Buy and keep
2. Investing in indices
How can I protect myself from fraud when trading cryptocurrency
Coins are simply that you are only allowed to use these digital currencies and you do not have any other powers or functions.
1- Who owns the company? If the owner is well known and respected, this is a positive sign that you are in the right place.
2- Are there other investors in this crypto company? If there are other investors who also want to own the coin, this is likely a solid company.
3- Will you own a stake in this company or will you just buy cryptocurrencies? The difference between the two is very important, owning a stock (or name) in a company means that you will contribute to its profits (you are its owner/partner) while buying means
4- Has this currency been developed? Well, digital currency is a very complex chain of coding and programming, and it requires super powerful hardware and very skilled programmers to set it up. So before you buy any coins make sure that it is already encrypted and you can use it right after you buy it. If the coin you want to buy still requires more programming and setup, this is a strong indication that you may have been scammed and that the company just wants to get paid to complete the crypto process. It is really exhausting to read all the details of the company selling you cryptocurrency, but always keep it in mind.. the more details, the better, the more likely it is that it is real and not fake.