Crypto is a popular way for people to invest in virtual assets that have the potential to increase significantly in value. However, it’s also extremely volatile, and if not handled carefully, investors may lose money. It’s essential to do your homework before investing in cryptocurrency, and be wary of companies that make baseless claims or use shady business practices.
While Bitcoin is the most famous cryptocurrency, there are thousands of others that have popped up over the last few years. Most of them are speculative, meaning that their prices fluctuate and aren’t tied to any physical asset like gold or silver. This makes them more risky than traditional investments like stocks and bonds, which are backed by real estate or company earnings.
Most cryptocurrencies are created through what’s known as mining. Powerful computers, called miners, use expensive processing power to record transactions on the ledger that holds a cryptocurrency’s records. For this, they earn a unit of the currency. This process isn’t free and uses a lot of energy, which has led to criticism that the coins are wasteful in an era of climate change. In addition, the number of units of a cryptocurrency is usually limited by design to prevent inflation and other economic problems.
To keep your crypto safe, you need a digital wallet. These are available for both smartphones and PCs, and they’re designed to protect against hackers. A smartphone wallet is called a hot wallet, because it’s connected to the internet and can be accessed by anyone who has your phone number or email address. A desktop wallet, on the other hand, is stored on your computer and requires you to plug a special USB dongle into it to use. This means that a thief would have to get your physical hardware wallet before they could gain access to your crypto.
The popularity of cryptocurrencies has prompted governments to take notice, and many are starting to craft rules for this emerging sector. Regulators need to ensure that these rules limit risks like fraud, tax evasion, and cybersecurity while allowing them to function as currencies and allow for global payments. It’s an ambitious endeavor that will likely take years to complete.
Video games
Whether you’re a PC gaming loyalist or play on Xbox, PlayStation, or Nintendo, you can spend your crypto in games with the BitPay Card. The cards can be used at any retailer that accepts MasterCard and can also be converted into bitcoin at the exchange rate of your choice. You can buy everything from CS:GO skins to V-bucks for Fortnite with the BitPay Card.
Another great use of crypto is to purchase a new cell phone and pay your monthly bill with it. You can do this directly through the Newegg website using BitPay or at a retail store that sells your preferred brand of cellphone. Be sure to read the fine print before making a purchase, as some retailers may require you to have a certain amount of BTC in your account before they’ll accept it for payment.