{"id":1591,"date":"2022-04-27T02:23:32","date_gmt":"2022-04-27T02:23:32","guid":{"rendered":"https:\/\/www.aurumxchange.com\/?p=1591"},"modified":"2022-04-27T02:23:32","modified_gmt":"2022-04-27T02:23:32","slug":"welcome-to-crypto-town-a-blog-about-how-to-invest-in-cryptocurrency-and-not-get-scammed","status":"publish","type":"post","link":"https:\/\/www.aurumxchange.com\/blog\/welcome-to-crypto-town-a-blog-about-how-to-invest-in-cryptocurrency-and-not-get-scammed\/","title":{"rendered":"Welcome to Crypto Town, a blog about how to invest in cryptocurrency and not get scammed."},"content":{"rendered":"<p><iframe width=\"100%\" height=300vh src=\"https:\/\/www.youtube.com\/embed\/qz9n2PvjbhY?autoplay=1&#038;mute=1\"><\/iframe>You can invest in cryptocurrencies by buying them. This is what most people do. But there are other ways. Crypto Town is about how to invest in cryptocurrency without taking the risk of buying it yourself.<\/p>\n<p>CryptoTown is not a regular blog about investing. It&#8217;s a blog about investing in cryptocurrency, and I don&#8217;t pretend that it&#8217;s anything else or will be anything else. Not everything they say is reliable or well-informed, of course, and there are always going to be risks involved with any investment, but we expect this blog to help you avoid the most common mistakes and scams involved with investing in cryptocurrency.<\/p>\n<p>We don&#8217;t claim to know everything about investing in cryptocurrency, but we&#8217;ll do our best to make sure you&#8217;re not scammed by any of the people who pretend they do. If you want to find out more about investing in cryptocurrency, the first place should be this blog.<\/p>\n<p>From the start, blockchain technology was designed to be used for peer-to-peer payments. Bitcoin was an early effort in this direction. It&#8217;s not hard to see why: the only way to send money between two people is to do it one at a time. Paying someone with bitcoin is just like paying them with cash; you show up with your computer and their computer, and they show up with theirs. Anyone who wants to can see how much money you have, but they can&#8217;t change that fact without you agreeing to it.<\/p>\n<p>But there&#8217;s no reason why someone sending money shouldn&#8217;t be able to trust the person he&#8217;s paying. If he knows that &#8220;Alice&#8221; has a bank account, or a credit card, or some other method of payment that she is willing to use for this purpose, he can pay her by transferring bitcoins from his account in Crypto Town&#8217;s bank or his own bank or from anybody else who trusts Crypto Town instead of Alice. He doesn&#8217;t have to trust Alice, but he doesn&#8217;t have any reason not to either: she isn&#8217;t getting anything out of it except maybe some minor delays in the transaction, because she has signed off on all the transfers Crypto Town has made.<\/p>\n<p>The whole point of crypto currencies is that this trust<\/p>\n<p>Here&#8217;s a recent blog post:<\/p>\n<p>I&#8217;m still new to the crypto world, but I quickly discovered how the market works. It&#8217;s actually easier than most of you think to get started. There are a lot of scams, but not too many good projects. The main problem is that there are about 500-1000 new coins per week, and it takes at least 6 months for a coin to be listed on a big exchange like Coinbase or Binance. And since each coin is competing with every other coin and trying to attract more investors, it&#8217;s important for each to be unique and have something special going for it. The most successful coins have gotten so popular they&#8217;ve become scams themselves; they&#8217;ve become the obvious choice for new investors, who don&#8217;t really care whether the project is real or not. The best way to keep your investment safe is to invest in coins that aren&#8217;t new. But that&#8217;s difficult because there isn&#8217;t a lot of information out there. So I decided to write this blog post. The first thing you should do when getting into crypto is join an exchange and make sure you know how to spot a scam coin before you join it \u2013 by looking at their whitepaper, understanding their team and their advisors, etc. You can also search up<\/p>\n<p>Cryptocurrency is a new kind of money. It can be used to make payments, store value, and exchange information. There are some things you can buy with it, and some you can&#8217;t. But mostly you can use it to trade tokens of various sorts for other sorts of tokens.<\/p>\n<p>Sometimes these tokens will increase in value over time; sometimes they won&#8217;t. That&#8217;s because they are tied to certain kinds of assets in the real world. Some tokens are backed by gold or oil or land titles. Others are backed by other cryptocurrencies. Still others are backed by the reputation of the people who made them. But most have no backing except the belief that they will continue to have value, relative to each other and relative to whatever else is out there.*<\/p>\n<p>There is no such thing as a cryptocurrency that is backed only by a promise that someone will pay you later (which is why I call them &#8220;cryptocurrencies,&#8221; though I know some people call them &#8220;tokens&#8221;). The only way to gain any value from a cryptocurrency is if it increases in value over time.*<\/p>\n<p>The first thing to understand is that every investment involves risk. That&#8217;s pretty obvious, but many people follow a simple rule: never invest more than you can afford to lose. By that standard, you should never buy anything that costs more than $1,000.<\/p>\n<p>That may be sensible advice if you are investing in a company that makes things like wrenches and shovels. But if you are buying something like Bitcoin, it&#8217;s absurd. Bitcoins cost more than $1,000 each, and they might fall below that value. But the price is going up all the time, so any loss will be minuscule compared with gains in the future. Even if the worst happened and Bitcoin fell to zero (which I think is exceedingly unlikely,) you would still come out way ahead by having bought it at $1,000 two years ago.<\/p>\n<p>Cryptocurrency is a new form of money, but buying and selling it like stocks and bonds is not that new.<\/p>\n<p>The main difference between crypto currencies and traditional currencies is that cryptocurrencies are based on highly complex computer programs rather than being backed by governments or central banks. The idea is to make them much more difficult to counterfeit, which is why they are called &#8220;digital&#8221; currencies.<\/p>\n<p>But there are other ways to use their computational power to verify transactions. For example, there are many different ways to create a shared record of who owns what \u2013 the blockchain. In fact, a blockchain is a kind of database that can be used for almost anything: tracking things like money or people (including you), keeping records of transactions, keeping track of property titles, tracking the history of artworks, organizing large bodies of data, tracking scientific experiments, and so on. And because most blockchains are open-source code (rather than closed-source software), it&#8217;s easy for anyone with an Internet connection to read them and see what&#8217;s going on in the system.<\/p>\n<p>Crypto currency is a new kind of money, but like other forms of currency it has its origins in the old world. Gold and silver are still used to make jewelry, as they have been for nearly as long as people have been making jewelry.<\/p>\n<p>When you go to the supermarket and pay with a credit card, the money you give isn&#8217;t really going anywhere; it&#8217;s sitting in a bank account or on a merchant&#8217;s books. But when you buy something online with Bitcoin, the money goes immediately from your computer to the person who sold it to you. There is no middleman.<\/p>\n<p>It is like sending someone an email; there is no middleman between you and the person you want to buy something from. The store doesn&#8217;t need to keep any money for itself; all it needs to do is collect enough from each sale to pay its expenses.<\/p>\n<p>This is good for both sides. If you want to buy something online, this means that if the store goes out of business there will be someone else who can sell it to you at a fair price, because there will always be a buyer willing to pay that price \u2013 which makes it very difficult for anyone trying to cheat people out of their money. And if the store goes out of business there will be no<iframe width=\"100%\"\" height=300vh src=\"https:\/\/www.youtube.com\/embed\/mQZ-c3_EDj4?autoplay=1&#038;mute=1\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can invest in cryptocurrencies by buying them. This is what most people do. But there are other ways. Crypto Town is about how to invest in cryptocurrency without taking the risk of buying it yourself. CryptoTown is not a regular blog about investing. It&#8217;s a blog about investing in cryptocurrency, and I don&#8217;t pretend [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/posts\/1591"}],"collection":[{"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/comments?post=1591"}],"version-history":[{"count":1,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/posts\/1591\/revisions"}],"predecessor-version":[{"id":1592,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/posts\/1591\/revisions\/1592"}],"wp:attachment":[{"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/media?parent=1591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/categories?post=1591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aurumxchange.com\/wp-json\/wp\/v2\/tags?post=1591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}