Can A Regular Person Make Money By Trading In Litecoin Or Other Cryptocurrencies?
Crypto is an internet-based digital currency that is used to pay for items and services on the Internet. A cryptographic currency, cryptosystem, or cryptocoin is a digital currency designed to function like a virtual cash vault where private coin ownership documents are stored in an offline form of a database. Unlike other digital currencies, such as credit cards and PayPal, one does not need to have a bank account to be able to spend their cryptocoin. Cryptocurrency works on a distributed ledger system, much like the physical network of banks. It is an internet-efficient form of money transfer.
There are three types of cryptocurrencies. Namely, there are Determine-oracle proofs of concept (DPC), Determine-izable outcomes (DOTs), and Pseudo Detervable outcomes (PDOs). DPCs are the most popular. A Determine-izable proof of concept is a proof of concept that has already been evaluated by the cryptography community and accepted as adequate cryptography; a DOT’s proof of concept is one that has been evaluated but not accepted by the cryptography community, and a pseudo Detervable outcome is one that is not yet established by the cryptography community but that is being considered by the cryptography community.
In the case of a Determine-izable result, a specific action can be taken in order to ensure that the desired output (the decentralized monetary system) will be produced. For example, in the case of cryptosystems like the Dash wallet, a deterministic result can be programmed into the wallet. If you wish to buy something off of the Dash store, you would enter a purchase order with the amount you wish to spend and the time frame in which you want the product to be delivered. The encrypted fiat currency used to fund your order is then sent to the designated address provided in the Make Payment Request (MCP) of the transaction.
In the case of a pseudo-cryptocurrency like the Litecoin currency, the pseudo-cryptocurrency is managed by an entirely separate entity. The managing entity is called the Litecoin Pool and is what actually determines the state of the Litecoin economy. As such, a Litecoin Pool cannot just change the state of the economy with the help of their own incentive mechanisms, as is done with cryptosystems such as Dash and Monero. Therefore, a pseudo-cryptocurrency like Litecoin does not have the ability to ‘self-manage’ its self since no government or company has control over it. Hence, a new threat has been posed by the Dash network itself: the Dashniks.
The Dashniks are an unknown group of people who have formed as a result of an unfortunate economic recession in Venezuela. A group of entrepreneurial thieves with money to spend have apparently taken notice of the collapse of the country’s economic infrastructure, namely the currency exchange rate, and have decided to take advantage of it. By manipulating the exchange rate of the Bolivar against the US dollar, they hope to earn profits by exchanging the virtual currency for a real one, thus creating a crisis for the national currency. Thus, the Dashniks have entered the scene.
So, the question remains – can a regular person make money by trading in Litecoin or other cryptosystems? Yes, you can, but there is a catch. You would need to use your own money to purchase the Litecoin you want to invest in. Therefore, using a debit card to fund your Litecoin is the only safe way to go. After all, Dashmex is an open source project, and if we can trust theDash folks, then why can’t we trust otherICO companies who deal in traditional currencies?