Bitcoin has just risen to a value above $57,000. This is the highest since May, where bitcoin reached an all-time high. The last year has brought a massive increase in the value of bitcoin.
In March 2020 the worth of bitcoin was less than $10.000. In October 2021 it was above $57.000. This is the highest since May where it reached an all-time high. The value of bitcoin is of course a direct reflection of the massive interests, where many big companies are buying this particular cryptocurrency. But bitcoin is not the only cryptocurrency that keeps rising in popularity. The interest in cryptocurrency keeps increasing.
How does it work?
The popular cryptocurrencies are decentralized digital valutas. This means that they are not regulated by any banks or financial institutions. This also means that the value rate fluctuates which makes the value of bitcoin and other cryptocurrencies very unstable. Cryptocurrencies use a technology called a blockchain. This allows transactions to be made anonymously and directly. The money is directly transferred from one crypto wallet to another using blockchain.
Part of the big appeal of cryptocurrencies is their blockchain technologies. The main reason is the security that it provides when transactions are made online. Another appeal is of course the possibility that the value of a certain cryptocurrency will suddenly go up. This can make the investor a lot of money. You can find endless crypto information here
Storing the crypto
There are several ways to store cryptocurrency. Some keep them at their crypto exchange, but must transfer them to their own crypto wallet. This is the safest way to store your cryptocurrency. There are several types of e-wallets. Some are online hot wallets. Others are called cold wallets; they store your crypto offline. This is the safest way to store your crypto. Every wallet has a unique wallet address that you type in when you transfer money to or from your wallet.
Building a crypto portfolio
Anyone can buy bitcoin or other cryptocurrencies online. It is very easy to buy. You can use a cryptocurrency broker or a cryptocurrency exchange platform. If you want to possibly make money by buying cryptocurrency, you will build a crypto portfolio. When you build your portfolio by buying different currencies, you should do your research and check out the recent rates and predictions. Most altcoins don’t last a cycle, which is something to be aware of. You can read more about how to build a good crypto portfolio here.
Even though bitcoin has reached close to an all-time high, it is not guaranteed that the value will stay up. As cryptocurrencies are not regulated, they have fluctuating rates that can go from high to low in a second. As mentioned above, most altcoins don’t last the first cycle of four years. This means that if you buy brand new cryptocurrencies, you should be prepared for the coin to potentially be worthless at some point.