Cryptocurrency FAQs and Simple Answers

It stands to reason that people interested in investing in cryptocurrency have questions. This kind of digital currency has seen remarkable growth since Bitcoin was first introduced in 2009.      

 For some people, investing can be intimidating. However, that’s not necessary. Here’s some information on these digital assets that can help you make a good decision about whether to invest.

What, Exactly, Is Cryptocurrency?

Cryptocurrency is a form of digital asset that does not exist physically but usable for buying services and goods. One of the big attractions is the fact it’s decentralized, meaning it is not controlled or issued by any kind of central authority.

 Secure transactions go through online ledgers and have strong cryptographic controls. This makes these digital assets almost impossible to duplicate, corrupt, or counterfeit. 

Where Cryptocurrency Value Comes From

Usually, these cryptocurrencies are not secured by more traditional means or assets like silver or gold.  There is one exception. Stablecoins receive their value from fiat currency values and other assets. However general factors like demand, scarcity, and utility influence its current value. 

What Cryptocurrency Types Are Available?

There are thousands of different types of cryptocurrencies to choose from. Some of the bigger names include Ethereum. Others, like Dogecoin, play on popular jokes or memes. Some have a temporary appeal like NFTs or non-refundable tokens. 

How Do More Traditional Institutions Feel About Cryptocurrencies?

Big Banks and other more traditional ending institutions have started to adopt this type of digital money. Some of the bigger players like JP Morgan Chase have even put together services for wealth management clients that teach them how to invest in cryptocurrency funds.

 Wells Fargo is offering some of these products to their clients. Even Goldman Sachs is beginning to look into Bitcoin futures. It’s also important to understand something about the digital ledger that works with cryptocurrency.

What Is Blockchain? 

This is the catchphrase for the distributed database that acts as an online ledger for the transactions. blockchain technology stores cryptocurrency data in what are called blocks. these blocks get chained together chronologically.

The blockchain itself runs on a decentralized network of computers. One of the big security bonuses to these blockchains is the fact that they are immutable. That means that all of the transactions on them are irreversible and permanent

Ethicalfinance.co is revolutionizing homeownership with a decentralized common sense token rooted in a rent-to-own Sharia-compliant real estate model. we like to say that we’re giving a new coat of paint to what was a more traditional path to home ownership.

Here’s a link to some more information on how the system works and what it can do for you.