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CRYPTOCURRENCY

CRYPTOCURRENCY: THINGS YOU NEED TO KNOW

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Bitcoin Is Not The Same As Blockchain.

You might have heard about blockchain being almost equal to Bitcoin, and some people out there think it is Bitcoin.

The truth lies in the fact that blockchain technology only supports BTC functions.

Anything can be “put on the blockchain”, as it is a system of storing data and transactions.

What is Cryptocurrency Mining?

Cryptocurrency mining is about putting some work in order to handle a transaction on the network.

Ways of mining has evolved as BTC is mined via proof-of-work.

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Now alts can be mined with proof-of-stake – where you stake a certain amount of tokens or coins and mine more.

Tokens-Coins Difference

Simply put, tokens are interim of a coin. A coin has its own blockchain, while tokens are usually used in Initial Coin Offerings and are later obsolete.

Starting A Crypto Project Takes A Lot Of Money

If you wish to go on a wild train and start your own crypto project, know this – you will have to deal with a lot.

Mostly scammers, people who promise but do not deliver, FUD, hate, hate groups even, claims that you are a copycat, and you will have to spend a lot of money on ads in order to make people believe you.

I am not talking in hundreds, more in thousands of dollars. To have a successful ICO, you will need a solid team too, which comes at a cost.

Market Manipulation

There is truly a lot of market manipulation. Think about it – the early adopters were people who received BTC via forums for free.

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Many sold, but many stayed in the market, moving millions of dollars today.

And do not get me started on SEC’s decisions and lack of regulatory documentation to support BTC.

But The Market Is Still Young

That is probably the reason why many people are getting in now.

The crypto market is really young – 10 years only. For example, we can start tracking gold prices from as early as 1919.

What Is Even The Point?

People, who blindly enter the market actually miss seeing the bigger picture – the whole point of Bitcoin and alts is to allow you to be your own bank.

This is not necessarily to avoid taxes, but simply to be in full control of your money.

Which Brings Us To Private Keys

This is the only way of you being able to access your funds. Should you lose a private key to a wallet, your fund is gone.

Now, holding crypto on exchanges brings additional risks.

If you enable 2-factor authentication but lose your phone, you will go through hell to get your account back.

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Luckily – all your funds are always stored on the blockchain. Therefore, the loss is impossible.

But Hacks Are

Hopefully, every exchange out there does their best to prevent hackers from penetrating the system.

After all, they not only store everyone’s funds, but also IDs sent for the know-your-customer verification.

On the other side, your computer might be susceptible. Some of the common attacks are:

  • Dusting – a scammer would send a small amount of BTC (few satoshis) to your wallet and later try to determine if he can penetrate it.
  • Ransomware – a scammer would “lock” your important data and demand a certain amount of crypto to release it.
  • Phishing – this is well known, a “prince” would ask you to help him or a lawyer would contact you for your “inheritance”, asking for personal info. The funniest I’ve seen? “FBI” contacted me. Sure. I’m a criminal.

Project Exploration.

There is way more to a project than only a white paper. Pay attention to what the project actually is about.

If they hide their real point, it is probably a scam.

A lot can be said about people behind a certain cryptocurrency project by observing their website.

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Do they have an SSL? Was it made lazily? Are they only focused on you spending money on their sale? Do they promise ROI?

THINGS TO IGNORE – for sure are FUDDERS. There will always be at least one FUDDER who hates the project for no reason.

Before Investing Your Money, Use Your Brain, Not Emotion.

People get into projects because other people did before them.

Those other folks – they shill. Shilling a project is basically overpraising it. Shilling is overkill.

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There will always be in some sort of danger.

You can lose your funds if you don’t play your hand right. You might get hacked. Some additional advice on how to be safer:

  • Ensure you’re dealing with a correct tipping bot.
  • Always make sure not to give your private key to anyone.
  • Ensure to transact through good channels.
  • One more time – do not give your private key to anyone.
  • Use a good antivirus for your computer.
  • Avoid using clouds for storing data.
  • Be careful of spam emails and phishing scams and even some ads. Never click on anything weird-looking.

Nothing comes for free and entering a crypto universe, just as an investor or to start a project might make you question your sanity late at night.

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The candles are in red currently, but have this in mind – high risks bring high rewards.

Mileva Stankovic was a former Elance Freelancer, a blogger at www.inspirationwise.com and crypto-moth.com.

She is a published author as she has one foot in the writing world, another in cryptocurrency, creator of magical worlds.

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