Who is the right person to invest in cryptocurrency? How do I create my own cryptocurrency?

Dec 09,2022
Who is the right person to invest in cryptocurrency? How do I create my own cryptocurrency?

Recently, many people are asking whether cryptocurrencies can be invested. Cryptocurrencies can be invested, but I think cryptocurrencies should be called speculation rather than investment. The author's view on cryptocurrency is the same as that on futures and decision-making power. These are speculative tools rather than investment tools. Compared with individual stocks, cryptocurrency, futures and decision-making power have something in common, which is essentially a zero sum game. So, who is suitable to invest in cryptocurrency? How to create your own cryptocurrency? Next, let's have a look.

Who is the right person to invest in cryptocurrency?

1. Blockchain advocates

At present, blockchain is being actively developed all over the world. If you agree that blockchain is the trend and this technology will change our lives, you can speculate in cryptocurrencies. The development of blockchain applications will certainly promote the overall value of cryptocurrency.

2. Long term investors

Suppose you think cryptocurrency is a trend and you are willing to invest for a long time. Then cryptocurrency may be an opportunity to gamble. The history of cryptocurrency is too short for us to verify whether it will rise as long as individual stocks.

According to the current data, cryptocurrency does appreciate gradually. Of course, if you think cryptocurrency will not be a foam, your long-term investment win rate will also increase a lot.

3. Current hedge trader

If you like short-term entry and exit, or even trading on the same day, cryptocurrency is a good choice. Cryptocurrency fluctuates greatly. If you have a high degree of control over information technology and transaction growth, you can certainly make a fortune from it.

4. Financial observer

At present, two cities in Switzerland can pay taxes with BTC.

There is no financial enterprise to control the cryptocurrency anywhere, but the governments of all countries will further liberalize the cryptocurrency.

If you are good at judging the international, political and financial situation and can find out the truth about cryptocurrencies from the government's mentality, you are also suitable for speculating in cryptocurrencies.

Once the government supports (or opposes) cryptocurrency, the trend of cryptocurrency will be greatly affected.

How do I create my own cryptocurrency?

At present, there are three main ways to create cryptocurrency: creating a new blockchain, forking the current blockchain and using the current platform.

1. Create a new blockchain

Start to create a new blockchain again, and then a new cryptocurrency is generated. BTC and Ethereum are created in this way, which requires a lot of numbering skills and knowledge, and is the most complex way to create cryptocurrency.

2. Fork the current blockchain

This is much faster and easier than re creating the blockchain, but it requires finding the open source code of the original cryptocurrency first, and then changing it to release a new currency with different names. For example, Litecoin is created by the developer based on the BTC fork, but this method still requires the creator to master how to modify the current code and some knowledge of numbering.

3. Apply current platform

For those unfamiliar with numbering, this method is relatively simple and convenient. At present, new cryptocurrencies are made on Ethereum, NEO and other current platforms. Many new projects use ERC-20 to create currencies on Ethereum networks.

Speaking of this, I believe you have a certain understanding of who is suitable for investing in cryptocurrency and how to create your own cryptocurrency. In general, Xiao Bian also reminds all investors that although cryptocurrency is a good speculation tool and is promising in the long run, both investment and speculation are accompanied by certain risks, and there is no secure trading. In addition, the cryptocurrency market is volatile and unpredictable, so we suggest that everyone must have a comprehensive understanding before entering the market and not blindly follow the trend.