We have all heard the proverb “curiosity killed the cat.” But did you know of its not-so-known continuation of “but satisfaction brought it back?” Questioning what you do not know about is a very admirable quality.
People constantly have a lot of questions about cryptocurrency that, honestly, are getting a bit repetitive now. From is it actually legit to how much does it cost? Here are some of the most asked questions on the topic of cryptocurrency that could give it to you once and for all.
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How does the determination of the value of cryptocurrency take place?
The assertion of the value of cryptocurrency is in unit times and the market capitalization of the cryptocurrency unit is based on the cost of the exchange to buy. The market capitalization is merely an estimate of the actual value of the cryptocurrency.
What are the well-known cryptocurrencies?
- Bitcoin has been the best and most traded cryptocurrency out there since its conception in late 2009. The last we heard each bitcoin had a capitalization of 45 billion dollars in the market.
- Ethereum has seen its own share of ups and downs but has fought to achieve its position of being the best right after bitcoin. From being worth as little as ten cents to $400, Ethereum is worth 18 billion dollars in the market as of 2017.
- With a comparison of being the silver to bitcoin’s gold, Litecoin is a cryptocurrency coming from the MIT graduate and former Google engineer, Charlie Lee.
When can you sell cryptocurrency?
Cryptocurrencies are extremely volatile, meaning their value and market capitalization are constantly on the move. One can easily lose 95 percent of it or even easily earn the same amount in no time at all.
Can you trade cryptocurrency between different countries?
One of the factors that popularised the use of cryptocurrencies is the feature of conducting international transactions at an unbelievably low cost for the transaction. So, yes you can trade globally.
The whole process takes anywhere from three seconds to fifty minutes based on varying factors. But cryptocurrencies allow for the exchange of virtual currencies in a matter of seconds from anywhere on the earth. Not even country regulation causes hindrance to this process.
Is cryptocurrency legal?
Cryptocurrencies are completely legal for trading and the exchange of services and products. But a lot of countries, such as Russia, have highly restricted the use of them. While other countries such as Thailand have issued a limit to their use.
Can a cryptocurrency become of no value?
There are close to 800 different cryptocurrencies. Many have arisen and failed as well. The German Mark and the Zimbabwean dollar are examples of physical currencies that have become worthless. Hence, it would be childish to assume that cryptocurrency cannot fall victim to the same fate.
What is the downside to cryptocurrency no one wants to talk about?
The major problem with cryptocurrency is how serious the whole process is. There are no second chances in virtual currency. To worsen this situation, virtual wallets are extremely easy to hack in comparison to robbing a bank.
This means that even if one wrong move can cost you all of your money forever, you can kiss it goodbye. Not even the highest authorities can help you recover this digital currency as being virtual steps the whole game up.
The best time to sell would be when you have achieved a 25 percent increase. The increase is compared to what you paid for the purchase of the token. If the achievement of this level of profit has yet to occur, it would be best to hold off on the selling.
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Here are a few frequently asked questions on cryptocurrency that should quench your thirst for knowledge on the subject. The world of cryptocurrency is endless and there is always something new to learn. But this here is a small insider looks into the vast void of virtual currency.
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