The first thing you need to know about cryptocurrency, no matter where in the world are you, you need the internet so you can use cryptography for money transaction. The most popular technology is the blockchain technology, which is also decentralized and transparent. The cryptocurrencies are not controlled by any authority.
In the last years, they became a phenomenon that affects a lot of people who decide to invest, dig, mine and trade Bitcoins and other popular virtual money. So, if you want to be a part of this global economic system, you should follow a few rules, so you can be safe and successful in this job.
The first lesson you need to learn is that there are a lot of hackers and scammers. Maybe this is not the most positive thing, but it is very important. In the world of cryptocurrencies, this scamming process is named cryptojacking.
What is cryptojacking?
After the hackers installed malware on your computer, they will use the power to mine cryptocurrencies. The user won’t even see what is happening in the background because it is very difficult to detect. The cybercriminals can attack you through email or via websites that you visit.
The easiest way to detect if something like this happened to you is to be aware of your computer performance. If you see any decrease in the basic functions or if the device overheats, there may be some malicious activity in the background. The steps you should follow when you invest in cryptocurrencies are awareness, detection, and prevention.
How can I get Bitcoins or other cryptocurrencies?
The most traditional way to get them is to mine and dig them alone. But, there are also many other ways. Once you have some amount of Bitcoins or other cryptocurrencies, you can sell some goods and be paid with them, you can exchange them, or you can trade them using trusted platforms.
It may sound really simple, but you need a high-quality computer that will solve all of the complex calculations that are later rewarded with cryptocurrencies. You sure have a lot of questions about mining Bitcoins, but the answers are available at crypto-profit.io.
Is it safe to buy Bitcoins in the UK?
You should be aware that the crypto values are not traditional money, and you can’t use them like that. There is no particular answer to this question because the Bitcoins investment is different in every part of the world. The rules are not the same. In the UK, for example, there are no specific laws and cryptocurrencies, including the Bitcoins, which are not considered as a legal tender.
So, if you need to exchange or trade your Bitcoins, you will have registration requirements and tax obligations. There will be gains, but also there will be some losses.
If you have to exchange cryptocurrencies in the UK, you first need to register with the Financial Conduct Authority (FCA), so you can get a license because crypto transactions require authorization. The question about cryptocurrency regulation is still opened, and the FCA needs to make strict rules on how this type of transaction will work in the future.
Are there any risks with this type of transaction?
Cryptocurrencies are not monetarized, and it is normal to be followed by a lot of risks. Their legal status varies between the countries, and many of them still haven’t defined the nature and rules of crypto transactions.
The first risk, instead of cryptojacking, is that the values of Bitcoins and the other currencies can decrease quickly as it raised previously. The cryptocurrency investors are easy to detect and target, so if you are not careful, you may quickly become a victim of hackers and scammers that steal your money and electricity to get more Bitcoins.
You should be extremely careful if you use peer-to-peer exchange systems to buy and sell cryptocurrencies because there are a lot of people that wait for inexperienced investors, so they can get their money with cheating and scamming.
How Bitcoins and other cryptocurrencies work?
A little known fact is that cryptocs are a side product of another invention. Their inventor, Satoshi Nakamoto, never had an idea for something like this. He was trying to develop a safe peer-to-peer electronic cash system, so he came to the idea about digital cash that can be used as a legal currency all around the world.
The crypto networks consist of peers that solve cryptography assignments, so they can find where the Bitcoins (and others) are hidden. After the money is found, the transaction happens almost immediately, and you just need to confirm it. If you wait too long to confirm the transaction, you may lose it, or someone can get to it and confirm it before you do that. But, once the money is confirmed, they can be reversed.
You should be a miner so you can confirm the transaction. Once the miner confirms it, it becomes a part of the blockchain. Everyone can be a miner if they have an appropriate computer that can perform all of the needed tasks. They have to find a hash, that needs to be connected to the machine, so the algorithm can work. After the miner solves the problem (the cryptologic puzzle), he can build a block that will be added to the blockchain. Some of these puzzles need a lot more power than the usual computer software, and that is why the cryptocurrency digging is a lot more complicated than it sounds.
So, the most important things that you should keep in mind are that:
– Once the transaction is confirmed, it can’t be reversed by anybody.
– None of the transactions can be connected to real people since they are pseudonymous.
– Everyone can be a cryptocurrency miner if they have the proper machine.
– The mining is pretty safe, but trading can be difficult and catchy.
– The cryptocurrency market can be dirty, but that should motivate you to do your research before you start investing.
These are the rules that are valuable today. Tomorrow, everything can be different, and you may need to learn a lot more things about cryptocurrency investment because the rules are changing every day.