Learn from this Cautious Guide to Cryptocurrency in Zambia, what cryptocurrency is, how it works, the risks, where to buy and sell in Zambia and investing
It is time we had a long overdue debate on the I Will lecture, ladies and gentlemen. A review of one of our time’s hottest financial trends:
Cryptocurrency in Zambia
Before that, you read about it. Perhaps when Bitcoin reached $20,000 in 2017 you read all the headlines. Perhaps you’ve got a buddy who won’t stop talking. Perhaps you opened your own Coinbase account and don’t know what to do about it.
We’d like to help you understand what cryptocurrency actually is and, most importantly, what it’s not.
Cryptocurrency in Zambia: Investment or Speculation?
The development and funding of cryptocurrencies should be differentiated. We have not many clear views on the tech side. Blockchain technologies are important and may be used for many purposes without cryptography.
However, cryptography is no good at all compared to “boring” inventories and bonds. We find cryptocurrencies speculation due to its unpredictable nature, relatively historic lack and high risk of failure.
You have a lot of cash flow in savings. Speculation means that there will be no potential cash flow, you only hope that the prices will increase. It’s gambling, basically.
It isn’t to say you’re never suppose you should invest in crypto. You can order your financial house first, and then purchase crypto, (for instance, invest in simple index money, open a savings account, obtain a good creditcard).
You will also hold to 10 percent or less the cumulative amount of speculation on your portfolio.
When you have developed a solid funding base and want to invest in cryptography. Where can you begin?
What Is a Cryptocurrency in Zambia?
Cryptocurrency is a digital currency that uses blockchain transaction processing technology.
We are decentralized as well. It means that a bank or an economic structure does not handle the capital. Therefore, it can not be abused by governments and corporate bodies.
It’s a ledger instead. A blockchain is a decentralized ledger run by a peer-to-peer computer network that manages and organizes cryptocurrencies transactions.
It is a little difficult to understand exactly how it works – it takes us to …
How Cryptocurrency Works in Zambia
Let’s look at an example to illustrate how cryptocurrencies function.
Think of two folks: Andrew and Bea.
Andrew is looking to buy the Bea painting, which accepts Bitcoin as payment. By logging into a digital wallet, Andrew transfers the amount due to Bea.
They are online platforms that hold your private key and communicate with the blockchain for tracking transactions. These are unique numbers and letters which record the amount of money you have.
All have to wait 10 minutes to complete the transaction. In this time, the payment details are analyzed by a network of computers working to verify pending transactions (as does a bank). The transaction is applied to the block chain after it has been checked.
Bea earns her money after the transaction has been applied to the block chain!
In short, this is how the transactions of cryptocurrencies function.
Most Popular Cryptocurrencies in Zambia
There are a number of different types of cryptocurrencies. Bitcoin (BTC) Bitcoin is the first decentralized cryptocurrency and the most common one today. The following are the most famous ones you can see today. You probably heard about it before. It utilizes technology from Blockchain to transfer money from wallet to wallet.
Bitcoin’s development reads like a spy novel itself. In 2009, the currency was created in the name of Satohi Nakamoto by a mysterious entrepreneur. This person’s true identity was not identified.
After it was founded, Bitcoin’s dedication to data security and decentralization has attracted tech enthusiasts, hackers, drug traffickers and hackers alike. By 2020, Bitcoin’s active users are over 7 million.
First created in 2011 by developer Charlie Lee Litecoin (LTC). Litecoin was developed. It is almost similar to Bitcoin in many technical aspects.
Unlike Bitcoin, Litecoin depends on blockchain transaction technology. The difference is that Litecoin transactions are processed faster than Bitcoin. Where Bitcoin takes 10 minutes, Litecoin takes 2 minutes and 30 seconds to complete a transaction.
This crypto also provides more money than Bitcoin with a total of 84 million Litecoins (compared with 21 million Bitcoin).
Ethereum (ETH) is another common cryptocurrency that uses blockchain transactions technology.
Designed by Vitalik Buterin and Gavin Wood developers in 2015, Ethererum has some features that differentiate from its cryptocomponents. One of the major differences is the “intelligent contracts” for the currency. These are the contracts produced by the machine which help to execute an activity. For example, if you buy a car, you may want to use an intelligent contract. It gets rid of the necessary paperwork and without an intermediary you can transfer ownership of the vehicle.
How to Invest in Cryptocurrency in Zambia without getting scammed the legit way
You may want to start investing in crypto now that you know a few basics.
This is close to every other investment: Step 1: Buy it.
Phase 2: Appreciate the benefit of it.(let its value increase)
Phase 3: Sell it. Phase 3: Sell it.(sell and get your profit)
Guess what’s the most difficult step? This is correct: letting the interest be appreciated.
This is due to how unpredictable cryptocurrency is an investment — an investment that leads us to …
Crypto has a High Risk in Zambia: Here is Why
Investment in cryptocurrencies is an extremely high risk. We have proof worth more than a decade from the market to illustrate that.
For instance, take Bitcoin. Bitcoin traded for roughly $900 / Bitcoin in early 2017. It rocked to almost $20,000/Bitcoin in December.
This means that in January if you had invested $10,000 in Bitcoin, the initial investment would be $172,966,546 in a year.
Yet the market was then right, and Bitcoin dropped down to $6,800 in April, then $3,700 in November 2018. (All the time to pick up your jaw from the floor.)
Which means you would have lost $6,810.35 by November of the next year if you spent $10,000 in Bitcoin as big as in December.
Why? Why? This is because there is no true way to evaluate cryptocurrencies. All is speculation, making it dangerous and unpredictable.
The money is backed up with a traditional currency. Whether it’s not gold-like products, the government or the bank must fund them.
It also differs from conventional investments like stocks in several critical ways. Where do you learn that you invest in an undertaking or business with stocks? You will look at client reports and investor comments. Crypto is not the case.
How to Buy Cryptocurrency in Zambia
For Zambia, use localbitcoins for both buying and selling.
But you can never invest in crypto. That doesn’t mean. There could be plenty of explanations for this.
You may like technology, or maybe you want to buy, or you may want to guess. You need two items for cryptocurrency buys: a place to purchase it. There’s a number of different places you can purchase called cryptocurrency exchanges. Such exchanges allow you to buy cryptocurrent with plain old money fiat (e.g. US dollars) or other currencies. (Remember: we suggest keep the amount of risk on your investments to 10% or less.)
We recommend you use Coinbase if you just start looking to dip your toes in crypto.
It’s one of the most famous exchanges of cryptocurrency – and for good reason. You can quickly buy and sell from the site for cryptocurrencies such as Bitcoin, Litecoin and Ethereum.
Coinbase also has a wallet to store your cryptocurrency,
How to store crypto after you buy in Zambia
In wallets, usually is cryptocurrency carried.
No, that’s not like an old tri-fold of your dad. This wallet houses the whole Bitcoin digitally.
A public key and a private key are given for each wallet. These numbers and letters are random and special to you and your wallet (and your assets, therefore).
To withdraw money from other accounts, you use your public key. You can post it online, as the name suggests. Your private key is used to sign your public key transactions. You want to secret this key and never share it.
Three types of wallets are available:
Software: All such wallets as web, smartphone or desktop (e.g. Coinbase) exist digitally. You can access them practically anywhere, since they’re interactive. Yet you fear it will be vulnerable to cyber attacks.
Fixed hardware. Such wallets live on hardware components like an optical drive or a USB stick. While users of these wallets will need to make their transactions online, they may store their cryptocurrencies for extra protection on a physical piece of media. But if you misplace it, you run the risk of losing it all for ever.
Paper. Paper. Another method of storage involves you printing and using your public and private keys on a sheet of paper for every transaction. As such it makes your cryptocurrency one of the safest types of storage. You just need to take care of a piece of paper, after all.
No matter what you want to do, note that for all there is no 100 per cent successful solution. Each storage option comes with its advantages and disadvantages.
Will you have to buy Crypto?
Crypto-currency can be a fun way to use your money until everything else is in order in your financial home. There is no question that the technology behind it is fascinating, and promises an exciting future.
Just know it’s speculation — not an investment.