Technology has revolutionized the way people work, communicate, shop and even pay. Businesses and consumers no longer necessarily use cash to pay for purchases, and this behavior has spurred the emergence of contactless payments such as Apple Pay. With a simple tap on a smartphone, consumers can pay for items at digital checkouts. Now, a new payment system is emerging: cryptocurrencies.
Everyone has inevitably heard of Bitcoin. It was the first cryptocurrency to go mainstream, but others are gaining in popularity. There are more than 2,000 different types of cryptocurrencies, and more are being developed every day.
According to one study, most people have heard of cryptomonies but don’t really understand what they are. So, what is a crypto-currency, is it risk-free and how can you invest in these currencies? To help you out, we will answer these questions. Here are some of the basics of investing in cryptocurrencies.
What is a crypto-currency?
A cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a P2P (peer-to-peer) sharing system that allows anyone to send and receive payments anywhere. It is not physical money carried and exchanged in the real world: cryptocurrency payments are purely virtual entries made in an online database and corresponding to certain specific transactions. When you transfer funds in cryptocurrencies, the transactions are recorded in a public ledger. You store your cryptocurrency in a digital wallet.
These virtual currencies are so named because they use encryption to verify transactions. In other words, they incorporate sophisticated encryption to store and transfer cryptocurrency data from wallets to public ledgers. Encryption is intended to ensure security.
Are cryptocurrencies really risk-free?
Cryptocurrencies are generally based on blockchain technology. Blockchain describes how transactions are recorded in “blocks” and time-stamped. It’s a fairly complex technical process, but in the end, it provides a digital record of cryptocurrency transactions that is difficult for hackers to falsify.
In addition, transactions require a two-factor authentication process. For example, you may be asked to enter a username and password to start a transaction and then an authentication code sent via SMS to your cell phone.
While security measures are in place, cryptocurrencies are not immune to hacking. In fact, several major hacks have cost cryptocurrency startups dearly. In 2018, criminals launched an attack on Coincheck amounting to $534 million and BitGrail to the tune of $195 million, the two largest cryptocurrency hacks in 2018, according to Investopedia.
4 tips for investing in cryptocurrencies safely
Investments are always risky, and some experts say cryptocurrencies are one of the riskiest investments, according to Consumer Reports. However, digital currencies are also among the most popular products. Earlier this year, CNBC estimated that the cryptocurrency market is expected to reach a value of $1 trillion by the end of 2018. If you’re considering investing in cryptocurrencies, these tips can help you make informed choices.
Get informed about the trading platforms
Before you invest, learn about cryptocurrency exchange platforms. They allow you to buy and sell digital currencies, but Bitcoin.com reveals that there are 500 of them, so do some research, read reviews and talk to more experienced investors before you jump in.
Find out how to store your digital currencies
If you buy a cryptocurrency, you need to store it. You can store it on a trading platform or in a digital “wallet,” such as one of the cryptocurrency wallets featured in our Which cryptocurrency wallet to choose blog post. While there are many different kinds of wallets, each has its own advantages, technical requirements and security. As with exchange platforms, you should consider your storage choices before investing.
Diversify your investments
Diversification is essential in any good investment strategy, and that’s especially true when you’re investing in cryptocurrencies. Don’t invest all your money in Bitcoin, for example, just because that’s the name you know. There are thousands of options, and it’s best to spread your investment across multiple currencies.
Be prepared for currency volatility
The cryptocurrency market is volatile, so be prepared for fluctuations. You will see dramatic price swings. If your investment portfolio can’t handle them or your temperament doesn’t sit well with these jolts, crypto-currencies may not be a wise choice for you.
Crypto-currencies are all the rage right now, but remember, they are still in their infancy. Investing in something new is not simple, so prepare yourself properly. If you’re thinking about getting started, do your research and invest carefully to get started.
If you want a site that keeps things simple and provides low-cost investment from a low entry point, Clanity is worth a look. Offering you a new platform, a new world where you can invest your money safely and easily. Obviously, we are not financial advisors so please do your due diligence before investing.
What is Clanity?
- Clanity connects brick and mortar businesses to customers through its blockchain rewards and engagement program.
- Clanity is the first blockchain technology that attempts to simplify and efficiently reward a large number of individuals who make subjective contributions to local businesses all around the world with a universal utility token.
- Clanity offers several uses that go beyond the average peer-to-peer trading of Cryptocurrency. Clanity plans to go mainstream and ensure mass adoption
Benefits
- Purchase Rewards — Clanity will incentivize users who complete a purchase at a business partner through their rewards program. Business partners will get an advertising or community engagement incentive for every customer purchase
- Community Engagement Rewards — Clanity will allow business partners to engage with their customers through their advertising and engagement program. Users will be more inclined to participate due to the token rewards once a community engagement task is completed using their social media platforms. At the same time, this will provide a low-cost customer acquisition, increase brand awareness and brand loyalty to their business partners.
- Staking Rewards — users who hold a minimum of 15,000 Clanity tokens will be able to get interest rewards. This reward mechanism will be dependent on the number of coins staked, which are also dependent on the lock-up months.
Clanity Platforms
The lists below are the planned platforms that Clanity wants to create for the ecosystem.
- CLANwallet — This is the planned web or application that seamlessly connects brick and mortar businesses and their customers once a purchase is completed. CLANwallet will process, hold rewards and serve as an actual token wallet for users.
- CLANswap — This is a planned swap exchange platform built on the web or application for Clanity tokens that users can connect to CLANwallet. Cardano, Cardano native tokens, and possibly other cross-chain cryptocurrencies will be easily traded on this platform.
- CLANbuzz — This is the planned smartphone application to materialize the community engagement and reward efforts for business partners and community members. Both parties can sign up and add specific tasks or complete certain tasks to get rewards and perks.
- PayCLAN — This is a planned payment gateway application for business partners to accept Clanity tokens as payment from users. Using this, they will get token rewards per transaction with no or low transaction fees.
- DataCLAN — This is a planned platform to allow users to sell their data to business partners for their desired amount. Business partners may also offer a price to buy a user’s data.
How Clanity Token will solve problems:
Clanity proposes the following solution via its unique business model and value proposition.
50% of points gained from reward programs are unused till expired, this industry needs to be revolutionized. Clanity uses Blockchain and token technology to introduce a reward mechanism where rewards (tokens) can be gained for purchases made by customers, participating in community engagement activities, etc.
“Clanity will pioneer and revolutionize the rewards program by creating a universal reward token.”
Introducing Blockchain to add value in unlikely areas
Clanity is introducing Blockchain to new areas such as rewards programs to benefit its market participants. Blockchain technology will increase the number of people benefitting from Blockchain’s efficient and transparent transaction mechanism and provide businesses with opportunities to attract and provide unique benefits to their customers.
Small businesses unaware of the technology would be taken on board as partners, increasing the adoption rate of blockchain technology, creating a network effect where more and more businesses would also move towards the technology adoption to remain competitive.
Clanity, with its business model, would help such businesses in their adoption while remaining competitive and improving their customer acquisition.
Supports low funded schools or high impact nonprofit organizations
Clanity strongly believes that our future depends on the younger generation, and providing them the educational resources is essential for scientific and economic advancement, which highly impacts the community. Part of Clanity’s goal is to support low-funded schools and high impact nonprofits to ensure that the younger generation is well equipped to take over the responsibilities of world innovation.
This shall be achieved by engaging schools to join our community to promote businesses by performing community engagement activities and earn rewards in return.
An example of community engagement can be a business partner creating a task for engagers to complete. This task could be sharing social media posts, engaging with the brand on social media,creating user-generated content for the business, etc.
The business partner will pay clanity tokens to access the functionality of creating these tasks. These tokens shall be used to pay engagers or users who complete these tasks. This creates advertisement opportunities for businesses and revenue for users (in this case, schools).
Furthermore, Clanity plans to establish Clanity Foundation to donate to schools on a need and merit basis.
Finally, we can say that Clanity Token will soon be taking place worldwide as one of the best and promising blockchain projects in 2021.
Visit www.clanity.com for more information.
Visit www.clanity.com for more information.
