Cryptocurrency

Bitcoin, Blockchain, Dogecoin, Ethereum….

Everyone is talking about CryptoCurrency right now. But what does it all mean? Let BetBeast take you on a journey as we uncover the pros and cons, the ins and outs and the highs and lows of Crypto.

What is cryptocurrency?

So, let’s get to the basics. Crypto currency is typically decentralised digital money designed to be used over the internet. Bitcoin, the first cryptocurrency, was launched in 2008, and although it remains to be the most influential and best-known, there are several different alternatives such as Ethereum, Litecoin, and Dogecoin.

Why is it different from Fiat?

With Crypto, you can transfer value online without the need for a middleman like a bank or payment processor. This means that you can transfer globally, almost instantly, 24/7 for low fees. Cryptocurrencies allow individuals to have complete control over their assets. Now I know what you are thinking. How can this be secure if there is no bank or government involved? Buckle-in because it’s time to talk Blockchain

Block-who?

Blockchain. A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes (online code).

In layman’s terms, imagine, using blockchain is like using Google sheets to collaboratively edit a spreadsheet – and everyone in the world can view and edit it. Except, there are a few extremely special rules you must use for making any changes. To ensure that you can’t change stuff which you don’t have permission to change, you must have a password (called a private key). A blockchain—THE blockchain—is like the ever-growing Edit History of that spreadsheet.

This is how Blockchain records who has bought or sold Cryptocurrency. No one person, company, country, or third party is in control of it, and anyone can participate.

Why should I use Cryptocurrency?

Crypto really is the new kid on the block, but it really does give fiat a run for its money (pun intended). Unlike fiat, crypto can’t be manipulated by any central authority, simply because there isn’t one. Your cryptocurrency will remain secure, regardless of what happens to your government. And anyone can have access to it, from a local fisherman in the West to a crowned prince in the East. Regardless of where you were born or where you live, if you own an internet-connected device, you are good to go.

How do I get started?

So you want to buy some cryptocurrency but don’t know where to start? Don’t worry you aren’t alone. Luckily you don’t need to be a blockchain expert to purchase crypto. Here is a quick run-down of what you need to do:

• Choose your platform
• Set up an account
• Fund your account
• Make a Purchase
• Store your crypto securely

Need to know more? Head over to Crypto: Getting Started for more information.

Risks and challenges

Buying, selling, and holding cryptocurrency is highly speculative and involves a substantial degree of risk. But like a lot of things, if you learn how to stay safe and protect your portfolio, you can enjoy the benefits that cryptocurrency has to bring.

Here are some common risks:

Price volatility:

Cryptocurrency’s price fluctuates because it is influenced by supply and demand, investor and user sentiments, government policies & regulations, as well as media attention and publicity. All of these elements work together to create price volatility.

Custody of keys:

As mentioned earlier, a private key is used to access a crypto wallet. It is essential to keep this key secure because whoever possesses it can sign transactions on behalf of the wallet owner. Make sure to choose a secure wallet and backup method. Typically, software wallet providers will prompt you to keep a backup of your private keys in a secure location such as a USB flash drive or a paper copy in a safe place to prevent loss of access. It is crucial to remember that you alone are responsible for safeguarding your private keys. Therefore, it is important to avoid keeping any private key backups on internet-connected devices. Never share your private keys with anyone or expose them publicly in any way.

We all make mistakes

When sending cryptocurrencies, you need to input a receiving address. These are a long string of a mix of numbers and letters, and it’s not unusual for someone to make a mistake while typing or copying & pasting the address, even for experienced users. And transactions made on the blockchain are irreversible, so if you make a mistake and send 1 BTC to the Content Creator of BetBeast rather than the seller of the Rolex you are buying, then thanks, but there is no way of getting them back. Make sure to check, double-check, and even triple-check the address before sending, perhaps even sending a small amount at first to ensure you have the right address, before sending the full amount.

Watch out for scammers

All in all, it's a good idea to be careful when using the internet and online services. When using cryptocurrencies, it's important to create strong and unique passwords and turn on two-factor authentication to keep your information safe. The same can be said for any other accounts you use that have personal information within them. Bad guys are constantly becoming better at hacking into computer programs to try to steal your information or take control of your device, so it's important to keep your computer programs up-to-date.

Anyone who uses cryptocurrencies can be targeted by scammers who try to trick them into giving away their passwords or private keys. And they don’t always use sophisticated tools to get them. Most of the time, people are tricked into giving away their personal details online with a simple sob story or by being made to think they are talking to the company directly. Be careful when using websites and opening emails from unknown sources that may be pretending to be reputable cryptocurrency companies. Remember that legitimate companies will NEVER ask for your passwords or private keys.

Bottom Line

An old saying goes: ‘If you take no risks, you will suffer no defeats. But if you take no risks, you win no victories.’ Investing in cryptocurrencies can be risky because it is a new and constantly changing technology, but as time goes on, many believe they have benefits over traditional financial systems. As more people and businesses use blockchain technology, the cryptocurrency market becomes more and more stable. But as we have mentioned before, learning about cryptocurrencies, staying safe online, and managing your risks is extremely important in this highly sophisticated online world.