Future Is Cryptocurrency - Waqar Khalid.docx

1. Future Is Cryptocurrency ?
By Waqar Khalid
Cryptocurrency, often known as cryptocurrency or crypto, is any digital or virtual
money that employs encryption to safeguard transactions. Cryptocurrencies operate
without a central issuing or regulating body, instead relying on a decentralised
system to track transactions and issue new units.
Cryptocurrency is a digital payment mechanism that does not rely on banks for
transaction verification. It's a peer-to-peer system that allows anybody to make and
receive money from anywhere. Digital wallets are used to store cryptocurrency.
Cryptocurrency payments exist as digital entries to an online database identifying
transactions, rather than as actual money carried around and traded in the real
world. When you move bitcoin funds, the transactions are recorded in a public
ledger.
What is cryptocurrency and how does it work?
Cryptocurrencies are based on the blockchain, a distributed public database that
keeps track of all transactions and is updated by currency holders.
Cryptocurrency units are formed through a process known as mining, which entails
employing computer processing power to solve complex mathematical problems in
order to earn coins. Users may also purchase the currencies from brokers, which
they can then store and spend using encrypted wallets.
You don't possess anything concrete if you hold bitcoin. What you possess is a key
that enables you to transfer a record or a unit of measurement from one person to
another without the involvement of a trustworthy third party.

2. Cryptocurrency examples
There are thousands of cryptocurrencies. Some of the best known include:
Bitcoin:
Bitcoin was the first cryptocurrency, and it is currently the most widely traded, having
been launched in 2009. Satoshi Nakamoto – largely assumed to be a pseudonym for
an individual or group of individuals whose true identity is unknown – created the
currency.
Ethereum:
Ethereum is a blockchain platform that has its own cryptocurrency, Ether (ETH) or
Ethereum. It was created in 2015. After Bitcoin, it is the most widely used
cryptocurrency.
Litecoin:
This money is quite similar to bitcoin, but it has moved quicker to build new
innovations, such as speedier payments and processes that allow for more
transactions.
Ripple:
Ripple was created in 2012 as a distributed ledger technology. Not only can Ripple
be used to track bitcoin transactions, but it can also be used to track other types of
transactions. Its creators have collaborated with a number of banks and financial
organisations.
To separate themselves from Bitcoin, non-Bitcoin cryptocurrencies are referred to as
"altcoins."

3. Buying cryptocurrency
You may be wondering how to buy cryptocurrency safely. There are typically three
steps involved. These are:
Step 1: Choosing a platform
The first step is to choose a platform to work with. In general, you have the option of using a
regular broker or a cryptocurrency exchange:
 Traditional brokers. These are online brokers that allow you to purchase and
sell cryptocurrencies as well as other financial assets such as stocks, bonds,
and exchange-traded funds (ETFs). These platforms often have reduced
trading expenses but fewer cryptocurrency functionality.
 Cryptocurrency exchanges. There are a variety of cryptocurrency
exchanges to select from, each with its own set of cryptocurrencies, wallet
storage choices, interest-bearing account options, and other features. Asset-
based fees are charged by several exchanges.
Step 2: Funding your account
After you've decided on a platform, you'll need to fund your account before you can
start trading. Although this varies by platform, most crypto exchanges enable users
to buy crypto with fiat (government-issued) currencies such as the US Dollar, the
British Pound, or the Euro using their debit or credit cards.
Credit card purchases of cryptocurrency are deemed dangerous, and some
exchanges do not allow them. Crypto transactions are also not permitted by some
credit card companies. This is because cryptocurrencies are extremely volatile, and
risking getting into debt — or perhaps paying hefty credit card transaction fees — for
particular assets is not recommended.
ACH and wire transfers are also accepted by some sites. The payment methods that
are accepted and the time it takes to deposit or withdraw money vary each platform.
Likewise, the time it takes for deposits to clear varies depending on the payment
type.
Fees are an essential consideration. These fees might include transaction fees for
deposits and withdrawals, as well as trading fees. Fees will vary depending on the
payment method and platform, so do your homework ahead of time..
Step 3: Placing an order
You can use the online or mobile interface of your broker or exchange to make an
order. If you wish to acquire cryptocurrencies, go to "buy," pick the order type, enter
the number of coins you want to buy, and complete the order. Orders to "sell" follow
the same procedure.

4. Can we store cryptocurrency?
Once you've acquired bitcoin, you'll need to keep it safe to avoid being hacked or
stolen. Coins are often held in crypto wallets, which are physical hardware or online
software that securely hold the private keys to your cryptocurrencies. Some
exchanges provide wallet services, allowing you to store your funds directly on the
platform. However, not all exchanges or brokers will immediately give you with a
wallet.
There are different wallet providers to choose from. The terms "hot wallet" and "cold
wallet" are used:
 Hot wallet storage: " "Hot wallets" refer to cryptocurrency storage that use
internet software to safeguard your assets' private keys..
 Cold wallet storage: Cold wallets (also known as hardware wallets) rely on
offline electrical devices to securely store your private keys, as opposed to hot
wallets.
What can you get for your bitcoins?
Bitcoin was designed from the start to be a daily transactional currency, allowing
users to buy everything from a cup of coffee to a computer, as well as big-ticket
things like real estate. That hasn't happened yet, and while the number of institutions
adopting cryptocurrencies is increasing, major transactions involving
cryptocurrencies are still uncommon. Despite this, crypto may be used to purchase a
wide range of things from e-commerce platforms. Some instances are as follows:
Technology and e-commerce sites:
Several tech businesses, like newegg.com, AT&T, and Microsoft, accept
cryptocurrency on their websites. Overstock, an online retailer, was one of the first to
take Bitcoin. It's also accepted by Shopify, Rakuten, and Home Depot.
Luxury goods:
Some high-end stores accept cryptocurrency as a means of payment. For example,
online luxury store Bitdials accepts Bitcoin in exchange for Rolex, Patek Philippe,
and other high-end timepieces.

5. Cars:
Some vehicle dealerships now accept cryptocurrencies as payment, ranging from
mass-market brands to high-end luxury brands.
Are we safe with cryptocurrency?
Blockchain technology is commonly used to create cryptocurrencies. The method
transactions are recorded in "blocks" and time stamped is described by blockchain.
It's a lengthy, complicated procedure, but the end result is a secure digital ledger of
bitcoin transactions that hackers can't alter.
Transactions also need a two-factor authentication process. To begin a transaction,
you might be requested to provide a login and password. Then you may be required
to input an authentication code given to your personal mobile phone through text
message.
While security measures are in place, this does not mean that cryptocurrencies are
impenetrable to hackers. Several high-profile thefts have wreaked havoc on bitcoin
startups. Coincheck was hacked for $534 million, and BitGrail was hacked for $195
million, making them two of the most expensive cryptocurrency attacks of 2018.
Three tips to invest in cryptocurrency safely
All investments, according to Consumer Reports, include risk, but some experts
believe bitcoin is one of the riskier investing options available. If you're thinking about
investing in cryptocurrencies, these pointers can assist you in making informed
decisions.
Research exchanges:
Learn about bitcoin exchanges before you invest. There are around 500 exchanges
to select from, according to estimates. Before making a decision, do your homework,
study reviews, and speak with more experienced investors.
Know how to store your digital currency:
You must store cryptocurrency if you purchase it. You can save it in a digital wallet or
on an exchange. While there are several types of wallets, each has its own set of
advantages, technological needs, and security features. You should research your
storage options before investing, just as you would with exchanges.
Diversify your investments:
Diversification is essential to any successful investment plan, and this is especially
true when it comes to cryptocurrencies. Don't invest all of your money in Bitcoin just
because it's a well-known name. There are dozens of possibilities, and it's best to
diversify your portfolio by investing in other currencies.

6. As crypto evolves, we will see a lot more stability, which will make it easier to
transfer and a store of value, which will make it more valuable.