We created this article to provide accurate, professional and easy to understand information on the world of cryptocurrencies. Lately cryptocurrencies have become fashionable: if until some time they were used only by a small group of experts in the sector, today everyone can use them both to make transactions and purchases and to obtain results by investing in the cryptocurrencies themselves.
This article was created with the aim of informing about cryptocurrencies but also of training readers to avoid falling into scams and scams of all kinds. In fact, making money with cryptocurrencies can be easy but at the same time there are many profiteers who try to exploit the notoriety of cryptocurrencies to steal money.
Scams can be of different types: there are Ponzi schemes that use phantom cryptocurrencies as a pretext and there are cryptocurrency exchanges that work for some time and then, when they finally start to gain a reputation for solidity, they shut down.
We do not want to demonize the world of cryptocurrencies, but it is clear that the only way to get results with cryptocurrencies without running the risk of being scammed and without facing the pitfalls of the deep web is to use regulated and secure trading platforms that work thanks to to the CFD mechanism (Contracts for Difference). Click here to get valuable info.
Therefore, the best way to invest and earn concretely with the cryptocurrency markets is first of all to avoid scams. The bad guys roam the maze of the network every day, to avoid them it is enough to operate exclusively with regulated and authorized investment platforms such as that of eToro (click here for the official main page) or XTB (click here for the official website). Platforms of this type, in addition to being very simple to use, are 100% safe because they are authorized and regulated by international control bodies. For the sake of completeness, here is the complete list of the best platforms, which have stood out for their safety, reliability and low costs:
In this case, we do not operate directly on cryptocurrencies but on financial contracts that have cryptocurrencies as underlying. These contracts are called CFDs. The difference is subtle but it is fundamental.
Thanks to these platforms, in fact, it is possible to operate with cryptocurrencies without the risk of being scammed, given that they are authorized and regulated platforms by the competent authorities
The second great advantage is represented by the fact that thanks to these platforms it is possible to obtain high profits by speculating with cryptocurrencies, both when their value rises and when it falls.
Cryptocurrencies: What are they?
What are cryptocurrencies and how do they work? Cryptocurrencies are full-fledged currencies, usually decentralized that rely on cryptography to ensure maximum security. The main function of cryptocurrencies is to make online payments without the need for intermediaries in a completely secure way. Cryptocurrencies are based on the proof-of-work scheme, which allows you to avoid online scams and counterfeits. Most cryptocurrencies work thanks to a peer-to-peer (p2p) decentralization scheme thanks to nodes, i.e. computers scattered around the world. On these computers programs are therefore run that allow you to have a real wallet, which allows you to send and receive money.
Except for some cryptocurrencies like Ripple, almost all cryptocurrencies operate in a decentralized way, so without a single element controlling the network or acting as an intermediary. To date, there are more than 1000 alternative cryptocurrencies to the first cryptocurrency: Bitcoin.
Most cryptocurrencies have been designed to be issued in a controlled manner over time, in order to introduce new units gradually over time, placing a maximum number of units. For example: Bitcoin has a total number of coins that asymptotically tends to the limit of 21 million, a limit that will be reached beyond 2030.
The difference with the central coins is therefore abysmal. If in Europe the European Central Bank controls the cost of money through the printing process, the government cannot interfere with cryptocurrencies as their technology is completely decentralized and free (and allows you to send and receive money in a pseudo- anonymous). A cryptocurrency also allows you to send and receive money at very low commissions, which are earned by computers (called “miners”) that allow the flow of payments and guarantee network security through the resolution of complex mathematical formulas.
Bitcoin is the queen of all cryptocurrencies, it was the very first cryptocurrency to be introduced and is still the one with the largest market capitalization and price per unit. Bitcoin was introduced in 2009 by an inventor who is still anonymous, known under the pseudonym of Satoshi Nakamoto. He developed an idea that was introduced on a cryptographic mailing list through a search called: “Bitcoin: a peer-to-peer electronic money system”.
Nakamoto then presented the open source code, which was released in January 2009. Nakamoto’s identity still remains anonymous. In the same year, Bitcoin begins to work, with the issue of the first bitcoins. Satoshi Nakamoto mines the first block of Bitcoin (called the Genesis Block) with a reward of 50 bitcoins.
Bitcoin is now accepted by more than 100,000 merchants. The main advantage of using Bitcoin are the commissions, which fluctuate between 0-2% (compared to 2-3% of the commissions applied to payments with credit cards). To date, sites such as PayPal, Microsoft, Stream, Expedia, Virgin Galactic, WordPress, Zynga, Mozilla.
After Bitcoin, many other cryptocurrencies were born. Among all we point out the Ethereum: which was born in 2013 as a next generation decentralized platform, for the creation and publication of p2p smart contracts. The peculiarity of this cryptocurrency are smart contracts, protocols that allow you to enforce a contract without the need for clauses.
After all, what are cryptocurrencies opinions?
What are the most popular opinions on cryptocurrencies? Some think cryptocurrencies are an easy way to make money, others think cryptocurrencies are some kind of scam. However, these two views are both wrong. It is true, speculating on cryptocurrencies can bring excellent results but to get them it takes a minimum of effort and above all you need to use the right platforms.
Not everyone has the ability to directly manage a bitcoin wallet, to say, but everyone is certainly able to use a CFD trading platform: it takes study, time but in the end the results arrive and pay off all the efforts.
And for those who think cryptocurrencies are a real scam? In this case we can say that the opinion was born because there have actually been numerous scams in the past. However this does not mean that cryptocurrencies are a scam.