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COVID-19 Market Considerations
Current market conditions have made this the perfect time to invest in cryptocurrencies. The devaluation of the dollar and other "fiat" currencies worldwide is leading to a mass influx of interest in Bitcoin, XRP and numerous others. In the U.S for example, the government has effectively diluted the dollar by creating trillions of them from thin air. Simple supply and demand law states that the more availability, the less the value of an item. In this case the dollar is the item. Conversely, as more people flee to alternative currencies, their supply reduces, driving the value up.
Bitcoin Halving
In addition to these forces, the grandaddy of all cryptos (Bitcoin) has just experienced a "halving". In May of 2020, the amount of new Bitcoins being introduced into the market due to mining is cut in half. Again, supply and demand comes into play here, driving the value of Bitcoin up because there is a limited supply of Bitcoin. Historically massive gains have followed Bitcoin halvings within 12 to 18 months. The other cryptos, known as "altcoins" tend to follow Bitcoin's movements.
Anyone Can Get In Now
All this creates the "Perfect Storm" of conditions that will result in an incredible opportunity for many who are willing to put some money into cryptocurrencies. At the time of this writing, Bitcoin is hovering around $9,500.00 per coin. The good news is that you don't have to buy a full Bitcoin to be involved. Fractional purchases are available through the various exchanges. All the various cryptocurrencies available serve various purposes and function in different ways. Some are deeply undervalued and will surely create many millionaires in the months ahead. The trick is to identify the ones that you believe in and have a lot of room to grow.
Address: A unique code specific to a digital storage location for crypto. Addresses reside within wallets.
Altcoin: Any cryptocurrency other than Bitcoin.
Blockchain: A constantly growing record of transactions stored cryptographically.
Decentralized: A concept referring to management by a distributed network, meaning control is not left up to any one person or organization.
Faucet: A website or other source of a small amount free crypto coins, usually in exchange for some action on the part fo the recipient.
Fiat: Government issued currency such as the dollar, euro or yen.
Halving: Describes when mining rewards are cut in half, thus reducing the new supply of a crypto. For Bitcoin this occurs every 210,000 blocks.
HODL: A term describing the strategy of "holding" your crypto for a period of time.
KYC: "Know Your Customer", a term referring to the identification requirements for exchange accounts etc.
Limit Order: Triggers set for exchanges to buy or sell at a specified price. This can also be set for a percentage up or down.
Mining: Earning crypto through computing or other means.
Satoshi Nakamoto: Thus far, the unidentified person(s) responsible for creating Bitcoin.
Staking: The act of getting crypto rewards for holding an amount of a specific coin. Only available for those coins supporting it.
Wallet: A digital means of storing crypto coins. Also used for transferring coins in and out. Wallets can be digital or hardware (cold wallet).
Whale: A term used to describe owners of very large amounts of a crypto. Often blamed for unexplained price fluctuations due to large buy and sell orders.