Welcome to AltNetPedia. The Cryptocurrency guide. Here you can read about different cryptocurrencies and what they can be used for.
What is a cryptocurrency?
There is no set definition for what is a cryptocurrency and what isn’t a cryptocurrency. Some people would claim that a cryptocurrency is any currency that is based on blockchain technology (or similar). This would make the JPM coin, the coin that JP Morgan is about to launch a cryptocurrency. Others think that a currency needs to have a number of other traits to be considered a cryptocurrency. Example of such traits that would be required for a currency to be considered a cryptocurrency include:
- Anonymity: No one should be able to track who makes which transaction.
- Decentralization: The coin should not be controlled by any one single entity.
- No jurisdiction: The currency should not fall under any single jurisdiction. It should be global.
- No restriction on use: There should be no restriction on how, and for what you can use the currency.
- Floating rate: The currency should have a floating market value against other currencies.
If you think that a cryptocurrency needs to meet these criteria then the JPM coin would not be a cryptocurrency. Something I tend to agree with. The JPM coin seems like a gimmick more than anything else. They simply change the currency of the money JP Morgan keep in the accounts of people who want to keep JPM coins. It can sometimes be hard to say what is, and isn’t a cryptocurrency.
There are no regulations surrounding the term cryptocurrency. Anyone can start a cryptocurrency, and anyone can call any currency a cryptocurrency.
What can you use Cryptocurrencies for?
You can use cryptocurrency to do almost anything you can do with regular currency. There is always someone willing to accept cryptocurrency in exchange for the product or service you want to buy. It is not unusual for sellers to charge a higher price if you want to pay in cryptocurrency than you would have to pay if you paid using another currency. The reason for this is the high volatility of cryptocurrencies. The seller has to make sure that the price he charges in a cryptocurrency is high enough for him to be able to convert it to a regular currency to cover his costs. Prices set in cryptocurrencies can change several times a day.
Investing in cryptocurrencies
Investing in cryptocurrencies is extremely high risk. Bitcoin and other cryptocurrencies have gone up and down in value a lot over the last few years. Investing in cryptocurrencies have made some people into billionaires but investing in cryptocurrencies have also cost a lot of people a lot of money. All those who brought Bitcoin at the top have seen their investment lose almost 80% of their value. If you invest in leverage certificates based on cryptocurrencies you can earn or lose even more.
Trading cryptocurrencies can be extremely profitable if you are able to predict the market movements of the currency you trade. If not it is likely to be an expensive experiment that cost you a lot of money. I do not recommend investing in cryptocurrencies if you need the money you invest. Only invest money that you feel comfortable loosing. Read more about investing in/trading cryptocurrencies.
Most people will be better of investing in blue-chip dividend stocks. That is a low-risk long term strategy that is very likely to make you a millionaire. Cryptocurrency is similar to a lottery ticket. You might win big, but you are more likely to lose money.
Gambling using cryptocurrencies
The gambling industry was one of the first industries to adopt cryptocurrencies. A large number of different online casinos accept bitcoin and other cryptocurrencies. Most casinos will convert your cryptocurrencies to USD that you use while gambling. The USD is then converted back into cryptocurrencies when you want to withdraw it (unless you chose to withdraw it using another banking option). There are a few casinos that allow you to keep your money in cryptocurrency and use the cryptocurrency to gamble. Fortunejack bitcoin casino is an example of a casino that only accepts cryptocurrencies. You can not deposit money using regular currencies. Fortunejack accepts Bitcoin, Litecoin, Dash, Monero, Ethereum, Zcash, and Dogecoin.
If you want to try other types of gambling such as bingo, online poker, or sports betting, you will find plenty of gambling sites that accept bitcoin and other top cryptocurrencies. Using cryptocurrencies to deposit money to an online casino is a great way to keep your gambling secret.
Why should you use cryptocurrencies?
You do not need to use cryptocurrencies. In fact, there is no reason for most people to use cryptocurrencies. They can be very useful for some things but are nothing that you need in your everyday life. There is no need to use cryptocurrencies for your daily purchases. You can do so if you want to but it is not practical to do. The most widely accepted cryptocurrency is Bitcoin and Bitcoin is unsuitable for most transactions. The value of bitcoin is fluctuating widely making it risky to keep money in Bitcoin, and the transaction fees are very high on small transactions. I really love the idea of Bitcoin and other cryptocurrencies but the fact is that Bitcoin has turned into something that is unsuitable for most transactions. It was supposed to be a cheap and easy way to trade online but have turned into a very expensive way to buy and sell things as miners have started to charge fees to register transactions in the bitchain. Bitcoin is now only suitable for large transactions where the relative size of the fee is lower.
The only reason to use cryptocurrencies right now is to conceal your identity. If you want to buy something that you do not want to be traceable to you then bitcoin and other cryptocurrencies is a good alternative. It is well known that cryptocurrencies can be used for illegal items such as drugs and weapons. But there are also many legal transactions that you might not want to be traceable to you and where you are willing to pay a premium to stay anonymous. This might include paying for a membership on a porn website or depositing money in an online casino. Two activities that you might not want your partner or anyone else to be able to tell that you engage in. Use cryptocurrency if you want to keep something secret if not, use cash or a regular credit card.