There are currently thousands of cryptocurrencies in the world, including bitcoins, but their value in the market is not stable.
It was May 2010 when Laszlo Hanyecz, a Florida resident, applied for two pizzas in exchange for 10,000 cryptocurrencies through an online advertisement, which was accepted by a pizza company.
Today, when the value of bitcoins has reached millions, the incident with Laszlo is often cited as an example. Those interested in the subject mock Laszlo’s simplicity, citing the current importance of cryptocurrency.
At that time, the value of a cryptocurrency was many times less than one cent. However, a bitcoin currently costs more than $50,000 in the international market, meaning Laszlo paid $40 for two pizzas for about $200 million.
Ten years later, there are about 7,000 types of cryptocurrencies circulating the world, ranging from trade to online buying and selling and other services. And then more and more crypto cards have come into the market.
This erratic and unorganized online currency is mostly used for making a profit. That is why this currency has not been stable since its inception.
What is a cryptocurrency?
As the popularity of this currency has increased all over the world, it is also very popular in every country nowadays and most of the time on social media accounts, especially in WhatsApp groups, people keep forwarding messages of cryptocurrency. Let’s see what it is and how to make a safe profit from it.
Cryptocurrency is the name of an online digital currency that is used to buy and sell online. Different companies around the world have introduced it in the market under different names, which is also called token in common parlance. It can also be compared to a bond because the real money is paid to buy the currency.
Cryptocurrency is run through a technology called ‘blockchain’. Blockchain is run individually by various computers without government patronage, which manages the money and keeps a record of the sales.
Types and volumes of cryptocurrencies
Haider Chingiz, a Pakistani-born New York-based man who has been doing business online and investing in cryptocurrency on Wall Street, the US business hub, for several years, told The media that at the moment, the whole of cryptocurrency there are more than 7,000 species in the world with a total volume of trillions of dollars. The most popular of these is the bitcoin cryptocurrency, which is worth more than a trillion dollars.
Haider Genghis said: “Cryptocurrencies such as the bitcoin are currently the focus of public interest because people see it as the currency of the future. One of the main reasons for its support and use is that it is not monopolized by the federal banks as most people think that these banks continue to devalue money in the name of inflation. This is not the case with cryptocurrency.
Haider Genghis says that he invests cautiously in cryptocurrency, because the money in this business is invested based on estimates, and it has nothing to do with the actual investment. He says: “Buying and possessing a cryptocurrency cannot be profitable unless it is raised in the market and sold.”
Bitcoin is currently (March 9) the largest cryptocurrency in the world in terms of volume, according to the Coin Market Cap, a website that collects information on cryptocurrencies and the trade and investment made in them. At number one, Ethereum is at number two with a total volume of $221 billion, at number three is Binance Coin with a volume of $37 billion, at number four is Tedder with a total volume of $36.8 billion and at number five is Cardano with a total volume of $36.3 billion.
None of the top ten cryptocurrencies in the world is available for free.
“The types of cryptocurrencies that are being advertised on social media and being said to be available for free are non-existent currencies, so no justification of buying them,” he said.
At present, various brokerage firms are offering cryptocurrency trading facilities including ‘Coin Base’ 30 types of cryptocurrencies, E-Toro 15 types, Robin Hood seven types, Sophie Active Investing three types, and Trade Station five types of cryptocurrencies. Is helping to buy and sell. Among these companies, Robin Hood is more famous because he does not receive any commission.
How to create an account for buying and selling
According to Haider Chingiz, a cryptocurrency trader, to open an account, he first downloaded an online investment application from his mobile app store, which could be Robin Hood, eToro, CoinBase, or any other application. After entering your real name, address, and other information, you have to associate your real bank account with it.
To avoid fraud, opening an account with a well-known company or owner can protect you to some extent. It is also important to see that the currency you are buying is already on the market or that a company is introducing itself at your own expense.
He said that after downloading the application, to buy the cryptocurrency of one’s choice, one goes to the search bar and buys the cryptocurrency which goes into the vault inside the app itself.
However, this is not the end of the story. After buying a currency, you have to be aware of the daily market conditions, the fluctuations in the value of the currency, and in case the price goes up or down, it is up to the account holder to decide. What does he want to do with this currency?
Pi Coin popularity in Pakistan
In Pakistan, most of the advertisements for ‘Pi Coin’ are common, but the mention of this currency in the list of coin market caps does not even exist in the top ten.
Uzair Ahmed, a young man from Peshawar, told Newsnblogs that he had been hearing the name of the coin for a long time, so his curiosity grew and he created an account in it.
“It’s a free account so I don’t have to spend any money,” he said. Friends say that this account has to be opened daily. And a button is pressed in which coins are collected at the speed of an hour.
On the other hand, Kashif Khan, an IT expert and a Pakistani Ph.D. scholar with a keen eye on the subject says that the ‘Pay Network’, which runs Pai, and the applications available from it, give consumers no idea. To no avail
According to him, due to the proliferation of cryptocurrencies in the market, people keep the Pi Coin app in their mobiles only because one day the value of their fictitious money will increase like a bitcoin.
Most of the world’s financial institutions and central banks, while refusing to sponsor cryptocurrencies, have warned their residents from time to time that they will be responsible for the financial losses incurred while doing business and transactions in this currency.
In 2018, the Central Bank of Pakistan, the SBP, had similarly warned that they could use cryptocurrency but they would be responsible for the loss. However, they never declared it illegal.
In November last year, the Securities and Exchange Commission of Pakistan (SEC) acknowledged the importance of digital currency and stressed the importance of establishing a system to monitor it. He said the new system does not fit into the existing regulatory framework.
The SECP added that it wanted to investigate the effects of the currency. The agency also sought suggestions from the public. This shows that Pakistan does not yet have a government system to monitor and secure it.