Everyone knows that people who bought Bitcoin and other cryptocurrencies a year ago have become millionaires. With many of these cryptocurrency currencies, gains of 1,000 percent or more are not only possible but have also been common. If a person had purchased Bitcoin in May 2016 for less than $500, they would have seen a 1,400% gain in about 17 months. Also, Bitcoin lost almost $1,000 in the last few days, so to say these cryptocurrencies are volatile would be an understatement. Crypto news

We at Trend News have been skeptical about the viability of cryptocurrencies ever since Bitcoin's inception in 2008, given that they clearly pose a threat to governments that want to see and tax all transactions. However, we are well aware of the potential of the technology behind these electronic currencies, despite our current caution regarding the actual crypto currencies. In point of fact, we are of the opinion that this technology will have a significant impact on the management of data and will affect every sector of the global economy, similar to how the internet affected media.

To get us started, here are some questions and their answers: Q: What exactly are digital currencies?

BITCOIN is the most well-known cryptocurrency (CC). 2008 marked the beginning of the first CC. Over 800 cryptocurrencies are "virtual" today, including Ethereum, Litecoin, Dash, Zcash, Ripple, and Monero. There are neither "physical" currency nor coins.

Q: How do CCs function?

Virtual currencies known as CCs are stored in extremely extensive distributed databases. The technology behind these databases is BLOCKCHAIN. Since there is no central point of attack and every transaction is visible to everyone on the network, it is believed that each Blockchain database is immune to hacking due to its widespread distribution. A group of administrators known as "miners" validate transactions for each CC. Ethereum is a cryptocurrency that uses "smart contracts" to verify transactions. In upcoming news publications, Crypto TREND will provide additional information.

Q: How does BLOCKCHAIN work?

The technology that underpins all CCs is blockchain. A BLOCK that is added to the chain is entered for each purchase, sale, or exchange of CCs. This technology is complicated, so we won't go into detail about it here. However, it has the potential to change the financial services industry because transactions can be done quickly and easily, which can cut down on or eliminate fees. Additionally, numerous other sectors are being investigated for potential uses of the technology.

Q: Are CC Exchanges subject to government oversight?

The majority of users will respond "NO," which is one of this market's main draws for them. It's the "wild west" right now, but most developed nations are looking into this market to see if it needs to be regulated. Whether to treat CCs as a commodity or security or as a currency is a big decision. CCs are currently legal in Canada and the United States, but the reporting and tax implications remain unclear. Crypto TREND will monitor these developments and provide updates.

Q: How can I put money into this market?

Using the services of specialized "Exchanges," which function as a brokerage, you can buy, sell, and exchange CCs. Selecting an Exchange, creating an account, and depositing fiat currency are the first steps. After that, you are able to make BUY and SELL CC orders. There are numerous global exchanges. These exchanges all have their own rules regarding initial funding and withdrawals, and opening an account is fairly simple.

In the future, Crypto TREND will recommend CC Exchanges.

Q: Where should I store my CC?

You will need a digital wallet to be able to move your crypto currencies around freely and pay bills. Desktop, cloud-based, hardware (USB), mobile phone, and paper versions of these wallets are available. Although many of them are free, security is important because no one wants to lose or have their wallet stolen. In the future, Crypto TREND will recommend digital wallets.