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Understanding Cryptocurrency Basics Before Buying Crypto

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The digital revolution has propelled cryptocurrency to the forefront of finance, captivating investors and enthusiasts alike. It represents a potential paradigm shift, offering a decentralized financial future with greater user control.

However, navigating this exciting yet volatile market requires a solid foundation in its core principles. And after reading this guide, you’ll be well equipped to make informed decisions.

We’ll explore the fundamentals, including the revolutionary blockchain technology that underpins it. We’ll delve into the benefits and risks associated with cryptocurrency, equipping you to weigh the potential rewards against the inherent challenges.

But knowledge is just the beginning. This guide equips you for action. We’ll explore the different types of cryptocurrencies and guide you in selecting projects aligned with your investment goals. 

More importantly, you’ll learn how to create your wallet to secure your holdings and, most critically, generate a strong wallet keyphrase – your master password to your crypto. Remember, safeguarding this keyphrase is paramount, as losing it means losing your investment.

By the end of this guide, you’ll be well-equipped to enter the world of cryptocurrency with confidence, understanding its potential and possessing the tools for responsible participation.

What is Cryptocurrency?

Cryptocurrency breaks away from traditional currencies by existing solely in the digital realm. It bypasses central banks and instead relies on cryptography and decentralized networks (blockchains) for security and exchange.

Key Concepts:

  • Blockchain: A distributed ledger technology that acts as a secure public record of all transactions. Imagine a giant, shared spreadsheet constantly being updated and verified by a network of computers. This eliminates the need for a central authority to oversee transactions.
  • Cryptography: Acts as the secret ingredient in cryptocurrencies. These sophisticated encryption techniques safeguard transactions and meticulously control the creation of new units, making counterfeiting and double-spending virtually impossible.
  • Mining: The process of adding new transactions to the blockchain and releasing new cryptocurrency units (for certain currencies). Miners wield powerful computers to solve intricate mathematical puzzles. The victor in this digital competition is rewarded with newly minted coins, adding to the cryptocurrency circulating supply.
  • Wallets: Digital storage solutions for your cryptocurrency holdings. There are different types of wallets, each with its own security features and functionalities.

Benefits of Cryptocurrency: A Deeper Dive

Cryptocurrencies offer unique advantages that are revolutionizing how we think about money and financial transactions. Here’s a closer look at the key benefits:

  • Decentralization and User Control: Unlike traditional currencies controlled by central banks, cryptocurrencies operate on decentralized networks. This means no single entity can manipulate the money supply or dictate transaction fees. Users have greater control over their finances and can send and/or receive funds directly without relying on intermediaries like banks.
  • Enhanced Security: Blockchain technology forms the backbone of most cryptocurrencies, providing a robust security framework. Transactions are encrypted, chronologically recorded on a public ledger, and verified by nodes (network of computers). This distributed ledger system makes it extremely difficult to tamper with transaction records, reducing the risk of fraud and counterfeiting.
  • Transparency and Trust: All transactions on a blockchain are publicly viewable, offering a level of openness absent in traditional financial systems. This allows participants to verify the legitimacy of transactions and fosters trust between participants who may not know each other. Additionally, the immutability of the blockchain ensures that transaction records cannot be altered, further bolstering trust in the system.
  • Faster and Potentially Lower-Cost Transactions: Cryptocurrency transactions can be significantly faster than traditional bank transfers. This is especially true for international payments. Cryptocurrencies can reduce transaction fees by eliminating the need for intermediaries and streamlining the process. However, it’s important to note that transaction fees on some blockchain networks can fluctuate depending on network congestion.
  • Borderless Transactions: Cryptocurrencies transcend geographical borders. Unlike traditional currencies restricted by national boundaries, cryptocurrencies can be sent and received anywhere in the world. All it takes is an internet connection. This eliminates the need for currency exchange and associated fees, making conducting international transactions easier and cheaper.
  • Potential for Programmable Money: Certain cryptocurrencies, particularly those built on the Ethereum platform, leverage smart contracts – self-executing code that can automate transactions based on predetermined conditions. This opens up a world of possibilities for programmable money, enabling applications like automated payments, escrow services, and decentralized finance (DeFi).

Risks and Challenges:

  • Volatility: Cryptocurrency prices can fluctuate significantly – a major downside for those seeking stability.
  • Regulation: As a relatively new technology, cryptocurrency regulations are still evolving, leading to uncertainty.
  • Security Risks: Crypto wallets and exchanges can be vulnerable to hacking and cyberattacks. Users need to be vigilant about security measures.
  • Environmental Impact: This refers to the energy consumption required for mining specific cryptocurrencies is a growing concern.

Different Types of Cryptocurrencies:

  • Bitcoin is the first and largest crypto by market cap, known for its limited supply and decentralized nature.
  • Ethereum: A platform for building decentralized applications (dApps) with its own cryptocurrency, Ether (ETH).
  • Stablecoins: Cryptocurrencies pegged to a stable asset (fiat currency) like the US dollar, aiming to reduce price volatility.
  • Altcoins: A broad term encompassing all cryptocurrencies other than Bitcoin. There are thousands of altcoins with diverse purposes and functionalities.

Before You Buy Crypto:

  • Do Your Research: Don’t just follow the hype. Before investing, understand the project, its technology, and its potential use case.
  • Define Your Investment Goals: Are you looking for a short-term trade or a long-term investment? This will guide your choice of cryptocurrency.
  • Only Invest What You Can Afford: Cryptocurrencies are risky investments. Only invest what you’re comfortable potentially losing.
  • Choose a Reputable Exchange: Select a reputable and secure cryptocurrency platform to buy and sell your crypto.
  • Learn About Wallets: Understand the different types of wallets (storages) and choose one that suits your needs and security preferences.
  • Stay Informed: Keep yourself updated on cryptocurrency news, regulations, and technological advancements.

Additional Considerations:

  • Taxes: Depending on location, cryptocurrency transactions may be subject to capital gains taxes.
  • Security: Always practice safe online practices and store your cryptocurrency securely.
  • Scams: Be cautious of scams and Initial Coin Offerings (ICOs) that typically promise high returns with little risk.

Conclusion

Cryptocurrency offers a glimpse into the (potential) future of finance, but it’s a complex and evolving landscape. By educating yourself, understanding the risks and benefits, and approaching it cautiously, you can make informed decisions about buying cryptocurrency and potentially participate in this exciting revolution.

Remember: This guide is a starting point; there’s always more to learn. Explore reliable resources like educational websites, articles, and white papers (a document outlining a cryptocurrency project) to deepen your understanding. Invest responsibly and never stop learning!

Business

Concern over impact of “Get Britain Working” plan on small businesses

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THE GOVERNMENT’S recently unveiled “Get Britain Working” plan, aimed at tackling unemployment with a £240 million investment, has sparked apprehension among small business owners who fear the reforms could inadvertently harm their operations.

The initiative promises to overhaul Jobcentres, expand NHS mental health support, and introduce a Youth Guarantee offering training and job opportunities for young people. While these measures are designed to boost employment, small businesses warn they could face unintended consequences.

Rising costs and competition

One major concern is the increased competition for talent. The focus on training and apprenticeships may lead to a more competitive job market, making it difficult for small businesses to attract and retain skilled workers. Larger firms with deeper pockets could easily outbid SMEs, exacerbating existing recruitment challenges.

Additionally, the anticipated rise in operational costs due to increased National Insurance contributions compounds the financial strain on small businesses. Many are already struggling with inflation and high energy prices, and these added expenses could force them to make tough decisions about staffing and growth.

Regulatory challenges

The plan’s emphasis on supporting people with disabilities and long-term health conditions may lead to new regulatory requirements for businesses. Compliance could become more complex and costly, diverting resources from core activities and stifling innovation.

Economic uncertainty

Despite the government’s assurances that the plan will unlock growth for all, many small business owners remain sceptical. The uncertainty surrounding these reforms may lead them to delay investments or hiring, potentially slowing economic recovery.

As the government pushes forward with its ambitious agenda, it faces mounting pressure to address the concerns of small businesses. Ensuring that these vital contributors to the UK economy are supported will be crucial in achieving the plan’s goals without unintended negative impacts.

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Tourism tax plans spark concern among Pembrokeshire business leaders

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WILLIAM McNAMARA, Chief Executive of Bluestone National Park Resort, has expressed concerns over the Welsh government’s proposed tourism tax, warning it could make Wales a less attractive destination for families and visitors.

Speaking about the plans, which include a £1.25 overnight charge for guests at hotels, B&Bs, and self-catered accommodation, McNamara highlighted the potential risks to Wales’ competitiveness in the UK market.

“Wales risks becoming less attractive to visitors, especially families, who may view this as an additional cost in an already competitive UK market – particularly as this levy is not being introduced in England,” he said.

McNamara also questioned the flexibility given to councils to raise charges in the future, calling it “an element of uncertainty that must be carefully managed.”

Bluestone, a 5-star luxury holiday resort in Pembrokeshire, is known for promoting sustainable tourism and celebrating Wales’ heritage and natural beauty. While McNamara acknowledged the need to invest in local infrastructure, he stressed that any levy must be implemented thoughtfully.

“It is crucial that this levy is implemented thoughtfully and transparently to support both visitors and businesses – especially for those already navigating economic challenges,” he said.

The tourism sector, often referred to as the backbone of rural communities, plays a vital role in areas like Pembrokeshire. McNamara emphasised the importance of reinvestment but warned the success of the tax would hinge on clear accountability for how funds are spent.

“Reinvestment in rural areas can undoubtedly bring benefits. However, the success of this levy will depend on clear accountability for how funds are used and a commitment to ensuring Wales remains a welcoming and competitive destination for all,” he said.

Meanwhile The Wales Tourism Alliance said that the tourism and hospitality industry contributes billions of pounds annually to the Welsh economy and employs over 11% of the working population and the Wales Tourism Alliance does not believe that a Visitor Levy is the right solution for Wales.  

The added that since it became clear that a Visitor Levy is a preferred policy for the Welsh Government they have put a huge amount of work in to ensure that any proposals would both recognise the importance of tourism to Wales and be fit for purpose.  

In a statement released on Monday (Nov 25) they said: “We are disappointed that a number of the key points on which we felt we had reached an understanding with the Welsh Government have not been adequately reflected in the proposed policy.  

“In particular we feel that the Welsh Government has missed a key opportunity to establish a registration scheme for self-catering accommodation that would have incorporated key health and safety criteria and assured visitors that their accommodation meets basic assurance standards.

“What has been proposed will instead increase the costs for tourism and hospitality businesses, which will be passed on to our visitors, without any perceived “added value”.  

“We are also disappointed that there is no clear commitment that the funding raised by the levy will be dedicated to improving the visitor experience in Wales.  We had emphasised the need for tourism and hospitality businesses and representative bodies to be involved with the decision making process on how the levy would be spent, but see no commitment to this.

“This was the Welsh Government’s opportunity to deliver a gold standard in tourism and accommodation – setting Wales apart from the rest of the UK.  Instead it has merely made Wales more expensive without any perceived added-value for our visitors.”

The proposed visitor levy, outlined in draft legislation, would see councils given discretion to implement the tax. It is expected to raise £33 million annually to fund services in tourism hotspots. However, industry leaders and opposition parties have criticised the plan, warning it could deter visitors and place additional strain on businesses.

Welsh Finance Secretary Mark Drakeford has defended the levy, calling it “fair” for visitors to contribute to the facilities and infrastructure they use.

Whether the tourism tax enhances or hinders Wales’ appeal as a top destination remains a topic of heated debate among businesses, councils, and visitors alike.

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Plans unveiled for new fitness hub in Charles Street

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A PLANNING application has been submitted for the transformation of The Original Factory Shop building on Charles Street, Milford Haven, into a state-of-the-art fitness and well-being centre.

The proposal, put forward by Inner Tiger Fitness, aims to offer a range of facilities, including areas for yoga and fitness classes, a protein bar, sunbeds, and a fitness-focused retail space.

Samantha and Darren Winn, co-founders of Inner Tiger Fitness and lifelong residents of Pembrokeshire, see this project as a chance to breathe new life into the town centre while addressing the growing demand for health and fitness services in the community.

The proposed floor plan of Inner Tiger Fitness Centre (Image: PCC)

Focus on community and well-being

In a public statement, the applicants emphasised their vision of creating more than just a gym. Samantha Winn explained: “We don’t class ourselves as a gym, but as a centre for health, fitness, and care. We aim to build a friendly, non-judgmental space where people of all ages and abilities can improve their physical and mental well-being.”

The facility will provide a range of offerings designed to appeal to both seasoned fitness enthusiasts and beginners, including modern gym equipment, group training areas, and classes such as Pilates and yoga. There will also be a dedicated space for those nervous or hesitant to use the main gym floor. Samantha and Darren Winn hope to foster a welcoming environment where individuals can connect, socialise, and embark on their fitness journeys with confidence.

The protein bar, a key feature of the new facility, will serve pre- and post-workout drinks and snacks, such as healthy smoothies and protein shakes. The owners were keen to clarify that this would not be a café in the traditional sense. “We will not be serving teas, coffees, cakes, or sandwiches,” they stated, countering concerns about competition with other local establishments.

Addressing high street challenges

The building on Charles Street has been on the market for a year, with no other substantial interest shown in its lease. The applicants argued that their proposal offers a solution to the decline of retail in town centres, a trend seen across the country. “Retail is dying on the high street. Town centres must adapt and evolve, or they risk becoming derelict,” they said. “We believe a busy, thriving facility like ours will attract more people to Milford Haven and benefit surrounding businesses.”

They also noted that no exterior changes to the property are planned, apart from essential maintenance and improvements. With peak hours expected to fall outside traditional retail times, they reassured residents that parking would remain adequate, with spaces available in nearby authority-run car parks.

Creating opportunities for Pembrokeshire

Inner Tiger Fitness plans to operate as a family-run business initially, with Samantha and Darren at the helm. As the facility grows, they aim to create both full- and part-time jobs, including roles for coaches, retail assistants, and receptionists. They also hope to establish career paths for young adults in the fitness industry by supporting apprentice trainers and helping them gain the qualifications needed to succeed in their careers.

“Our goal is to make a meaningful investment in Pembrokeshire, not just financially but also socially,” said the couple. “We care deeply about creating opportunities for local people and providing a space that helps everyone feel healthier and happier.”

Responding to public feedback

The proposal has generated mixed reactions on social media, but Inner Tiger Fitness has welcomed the discussion, encouraging residents to share their opinions via the planning consultation process. In a Facebook post, they addressed concerns raised by some members of the community, particularly regarding the future of the current tenant, The Original Factory Shop.

“We are not responsible for any decisions made by the Factory Shop or its internal communications with staff,” the post read. “The building has been on the market for over a year. If retail businesses were thriving, the property would not have been available. Our vision is to bring this space back to life and offer something unique that meets the needs of the community.”

Inner Tiger Fitness also clarified that their facility would not compete directly with existing gyms or leisure centres, such as the Meads. “The Meads offers a range of facilities that we do not, such as swimming, tennis, and squash. Our focus is entirely different. We are building something new and innovative,” they said.

Looking ahead

If the planning application is approved, the facility could open as early as 2025. Samantha and Darren Winn remain optimistic about the project’s potential to make a positive impact on Milford Haven. “We would rather try and fail than never try at all,” they said. “We want to create a space where people can improve their fitness, build friendships, and feel part of a supportive community.”

Residents are invited to view the plans and submit their feedback online. Samantha and Darren concluded: “For those who support us, we are truly grateful. For those with reservations, we hope to change your mind. Our vision is about more than just financial gain—it’s about building something meaningful for Pembrokeshire.”

The Original Factory Shop recently announced it was closing its Haverfordwest Branch, but it was widely assumed that the Milford Haven shop was going to remain open, despite speculation earlier this year that it was to shut down.

It has been reported that The Original Factory Shop is struggling financially, with several restructures having recently taken place in an attempt to keep the firm solvent.

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