Libra is the cryptocurrency that many pundits expect will be making waves in 2020 onwards. Although Facebook had announced earlier in June that they will be launching Libra sometime in 2019, both the platform and wallet are still under final development stages. Libra first became popular in the cryptocurrency world in 2018 when the team under David Marcus’ leadership established Facebook’s first blockchain division. The group hinted at creating a cryptocurrency in 2019 and Facebook confirmed this goal in June 2019 when they revealed the name. Because of their widespread popularity and reach as the largest social media network, most people expect Libra to kick-off to a great start. However, this was not the case when Facebook launched Libra in Washington. Some even expect the lousy reception in DC to affect Libra’s prospects as a cryptocurrency. There are several other concerns about Libra, which has the features of both crypto and FIAT. As an investor, there are many questions you should ask:
- Is Libra legit or a scam?
- Should I buy Libra and invest in a Facebook coin?
- Which is the best platform to use for investing in Libra?
- What are the risks and opportunities?
- Is Libra a cryptocurrency or transaction processing platform?
Finding answers to these questions can help you understand the hidden critical aspects before investing in any cryptocurrency. With so many coins emerging and disappearing in the market, it is important to read beyond the whitepaper and determine how the platform works. If you have such concerns, below is a comprehensive review of Libra, including insights on how to invest in the Facebook coin and what it entails.
What is Libra coin?
As aforementioned, Libra is a cryptocurrency by Facebook. This coin has been causing waves within the crypt world and is touted to become one of the most successful digital currencies over the next few years. Libra is no different from other existing cryptocurrencies, in that, it operates without a central bank. However, it was designed to resolve various issues with other coins. According to the announcement, Libra seeks to address the vitality and scalability of cryptos by creating a unique coin that bears the intrinsic features of regular FIAT currencies. As such, Libra will function as a store of value, a measure of value and unit of account. The coin will operate under the Calibra subsidiary, which is also the crypto’s digital wallet. The Calibra wallet will be available as a standalone app accessible via both Facebook Messenger and Whatsapp.
Libra will also be a stablecoin pegged to four of the most popular FIATs (US dollar, Euro, Japanese Yen and Great Britain Pound). Other FIATs will be added as the coin becomes more mainstream and accessible across the globe. Despite being a stablecoin, Libra will not have a constant or static value. Instead, its value will vary depending on other market factors, just like regular FIAT currencies. Nonetheless, the dynamics will not be as volatile as experienced in other cryptos. This means Libra coin will be able to work more similarly to traditional currency than crypto. What’s more, Libra will be controlled by the Libra Association, so it will not be fully decentralized at launch. Also, only a few people will be allowed to mine the coin, so it won’t be as distributed as Bitcoin.
Nonetheless, Libra will have all the other attributes that define modern cryptos. Other key features worth noting about this cryptocurrency include the employment of smart contracts through the “MOVE” programming language and facilitating seamless transactions among the unbanked populations. It will also use the LibraBFT consensus mechanism. Libra is set to reach a much wider audience, especially since it will permit seamless transactions for the unbanked population. Around 2 billion people do not own a bank account, while the total number of mobile users stands at over 5 billion. With Facebook boasting 2.3 billion active users every month, the coin aims to leverage this reach to make it easy for everyone to transact without necessarily requiring a credit card or bank account.
How do I buy a Libra coin?
Many people are claiming Facebook’s Libra will be the most significant breakthrough in the cryptosphere since Bitcoin. Fortune 500 companies like VISA and Uber have already backed the crypto investing $10 million each to facilitate its launch. However, traders will not need to spend as much to realize profits. The coin allows investors to start with as low as $250 and offers a staggering growth path with accurate trading signals. According to pundits, traders will be able to earn as much as $1000 per week. If you are interested in owning or trading this new crypto, Libra Profit System is the primary method currently available. Libra Profit System is unlike any other crypto platform you will come across. Rather than offering a crypto exchange or brokerage, Libra Profit System is an automated trading robot powered by a proprietary algorithm that makes portfolio growth effortless for both new and seasoned crypto traders. Here are the steps for purchasing Libra coins:
a) Open an account
You will need to visit Libra Profit System official website to register for an account. The registration process involves completing a short form and providing basic details such as name, email, phone number and password. The team will process and create your account upon completion of registration. Anyone can sign up for an account with Libra Profit System provided you meet the minimum requirements. Make sure you provide accurate information during registration. To complete registration and begin trading, you will be required to download the Libra Profit System App. This copy is available for free once you have deposited money into your account. Opening an account with Libra Profit System should be an effortless task for everyone. You will also need to sign up for a new account with Calibra for the digital wallet. This entails more stringent verification processes to ensure the platform and all funds are safe.
b) Make a deposit
To purchase Libra, you need to deposit funds into your Libra Profit System account. The platform allows deposits from $250 with no limits on how much you can invest. Once you have funds in your account, your trading profile will be activated, allowing you to purchase and trade Libra. The funds will also remain in your account and you can make a withdrawal at any time. You can deposit funds through various options, including Visa, MasterCard, Maestro, SWIFT and Diners Club, among others. Libra Profit System’s top analyst will also give you a call upon activating your trading profile (immediately after making a deposit). They will provide a step-by-step guide on how you can benefit from the solution.
c) Begin trading
Libra Profit System is described as the world’s smartest cryptocurrency trading software and it is available for free once you have made the minimum $250 deposit. You can begin trading online as soon as you have funds. Also, in the future, when Facebook launches the Calibra digital wallet, users will be able to purchase Libra, store them and use them for all kinds of transactions. However, obtaining Libra through a digital wallet will require new signup and identity verification process with government-issued IDs. This will also make it possible to convert FIAT currencies to Libra and vice versa. There are various ways to trade with Libra, whether to prefer margin trading or exchange. You can also use Libra to make everyday transactions or simply hold it in your wallet, awaiting its value to increase.
Buying vs. trading Libra coin
Once you have an account loaded with some Libra coins, it is time to decide whether you want to just hold on to your funds until the value is high enough to result in massive profits or begin trading. Buying Libra coin is relatively simple. All you need to do is follow the above steps for registration and deposits. You can then purchase Libra coins and hold them in your Calibra wallet. Trading, on the other hand, requires insights and experience. Like with any other crypto, to become a successful trader, you need to analyze price charts and market trends. You will also need to enter and exit positions depending on your predictions manually. Manual trading, in particular, has a steep learning curve and requires a level of skill to realize success. However, it is not anything complicated once you get the hand of crypto trading. What’s more, the platform will offer a wide variety of trading tools and resources to help you learn how to make a profit.
When you buy Libra, you can transfer it, sell it, own it or transact as you wish. This choice is ideal for anyone who simply wants to hold Libra in hopes that the value will increase and present the opportunity to make significant profits. You can use the Libra coin just like FIAT to pay for purchases. Buying also has a lower risk level compared to trading. When it comes to trading, you do not necessarily have to own the Libra coin. You can merely take short or long positions on the platform without holding any currency. Libra trading is built on a social-driven system with a high potential for gains. The platform claims to offer a 97% chance of profitability, although this also comes with a higher risk as there are no guarantees, at any particular time, whether the value of Libra will rise or drop. The risk is even more significant if you plan to trade on margins. Nonetheless, if you are a seasoned crypto trader, the opportunity can be very profitable.
Libra as a stablecoin
Libra is set to be the first stablecoin cryptocurrency. This means it will be backed by some of the world’s established FIAT currencies such as the dollar, euro, pound and yen. The FIAT backing will offer stability to Libra, ensuring it does not fluctuate as remarkably as witnessed with other cryptos. The 12-page whitepaper released by Facebook also indicated that the platform would begin as a permissioned blockchain governed by the members of the independent Libra Association. Currently, the association has 20 partners and plans to have 100 members before the crypto fully launches in the first half of 2020. The Libra Association members will be responsible for mining Libra coins, which is a setback for crypto-libertarians who are used to the distributed decentralized nature of Bitcoin and blockchain technologies.
While Libra is touted as a cryptocurrency, experts suggest it plays a more significant role as a peer-to-peer payment network like PayPal, Square, Venmo and Western Union. These systems are layered on top of the existing financial system, just like Libra is modeled after other cryptos like Bitcoin. However, unlike other peer-to-peer payment options, Libra seeks to bring about global unification that has long been lacking. Most payment systems are not interoperable and when they are, prices can be quite steep. Libra will, for the first time, allow users to effortlessly send and receive funds, pay for transactions and even trade the crypto. When it becomes successful, Libra has the potential to become dominant crypto that traverses boundaries and local currencies to offer a unique way to pay for goods and services digitally.
About Libra coin wallets
Every cryptocurrency requires a digital wallet where users can hold and store their cryptos. Until now, there is only one digital wallet for storing your Libra coins. This is the Calibra digital wallet, which is Facebook’s only approved wallet. Calibra will exist as a standalone app that can also be integrated into other apps. This digital wallet will be accessible via Whatsapp and Facebook Messenger, which are both maintained by the giant social platform. Calibra wallet and Libra coin are under the final development process, although they are expected to be available in the early months of 2020. While Calibra will be the only wallet available at launch, the company intends to allow other developers to come up with their unique digital wallets for the coin as this is the norm in the crypto world. Calibra offers a fast, secure and convenient way to transact with only a few taps. The experience is relatively similar to using FIAT currencies, albeit more efficient and safe. All accounts will also be verified using government-issued IDs to ensure everyone is who they say they are.
However, there is still one unanswered question about Libra coin storage and wallets. Essentially, there are two main ways to hold cryptocurrencies. The first is through a trusted custodian or custodial wallet like Coinbase. For instance, if you purchase Bitcoin from an exchange such as Coinbase, you can leave it there and the custodian will hold it there for safekeeping. Unfortunately, third party custodians are regulated entities that can freeze you out of your account when law enforcements are after you. The second option is using a non-custodial wallet that involves cryptographic keys. You can store the coins in a flash drive or even in a piece of paper in a safe box. The good thing about non-custodial wallets is you can do anything with your coins and the government has no way of freezing or stopping you from using the crypto whichever way you please. However, if you lose or forget your private keys, your coins are lost forever. Since Facebook is regulated and its platform also has a group of members tasked with governance, Calibra sits somewhere between custodial and non-custodial wallets.
Safety and security features
There is no single government body that governs cryptocurrencies. This is because until now, cryptos were decentralized systems that anyone with an account and a PC could facilitate with verification. While the lack of government interference is one reason why cryptos have flourished, it also makes it easier for criminals to use them for money laundering and other illegal activities. Libra will launch as a permissioned blockchain, which will give control to up to 100 organizations. The company will also launch its Calibra subsidiary full of separate servers to store financial information. This will ensure social Facebook accounts and financial details are stored and managed separately. There are several other security measures in place. The platform will run on open-source code to allow public auditing and debugging.
Libra is set to become the greatest cryptocurrency in the world, thanks to Facebook’s global popularity. Most compare it to Bitcoin and even suggest it will only serve to push Bitcoin further into mainstream acceptance. Others fear that Libra and Facebook’s high ambitions may fail. Despite the mixed criticism from both sides, Facebook expects Libra to be very successful. The company will have a considerable task to resolve safety concerns and navigate the stringent legal frameworks. The crypto has been hit by various headwinds that have set the Libra coin project a few months back. Nonetheless, it is expected that Libra and Calibra will be available in 2020. Their intuitive algorithm also shows great promise and potential for success.
- 1. Is Libra coin a cryptocurrency like Bitcoin?
Yes. Libra coin is a digital currency that uses cryptographic security like other cryptocurrencies. It also operates without a central bank and uses a public ledger, public key transactions and pseudonymous digital wallets. In this sense, Libra is a cryptocurrency like Bitcoin and other altcoins. However, Libra has its unique features and differences, including what it can achieve. It is also a stablecoin that depends on other popular FIAT currencies.
- 2. Is it safe to invest in Libra coin?
Facebook has promised to use an open-source code for its Libra cryptocurrency. This will allow for easy auditing and monitoring for bugs. They will also introduce a bug bounty system aimed at incentivizing developers to look for viruses and other vulnerabilities. What’s more, if users lose any money, Facebook promises to refund it and immediately fix the bug. The crypto is relatively safe and many already compare it to Bitcoin in that regard.
- 3. Does Libra use blockchain technology?
Yes. Libra uses a proprietary blockchain technology created by the team at Facebook. Like other cryptos, you can become a Libra miner. However, you must be a member of the Libra Association or wait until such a time when the platform transitions to a permissionless blockchain. Libra’s system is also different from traditional technology in various aspects. It can scale up to billions of users and users a Merkle Tree System instead of blocks.
- 4. What does it mean to use a permissioned blockchain?
Unlike permissionless blockchain where anyone can become a miner provided they have the right set of equipment, Libra uses permissioned blockchain. Only members of the Libra Association will be in charge of the platform’s wellbeing. The platform will still be decentralized and will transition to a permissionless system as the community grows. However, at launch, users will not be able to mine the coin or participate in the distributed ledger verification process.
- 5. Will Facebook have full control of Libra?
No. Facebook will withdraw from their leadership role once Libra is launched. The platform will be controlled by members of the Libra Association, who have the same vote and influence. The association intends to have 100 members before the official launch. The Libra Association will have a council in charge of voting on decisions and policies. However, Facebook will have a significant role to play, including the management and operation of Calibra.
- 6. Who is eligible to buy Libra coin?
Libra will be available to anyone who meets the minimum requirements, such as government-issued IDs, valid email address and minimum deposit. Also, because it does not require one to have a bank account, pundits expect Libra to become very popular across the globe. Facebook targets around 1.7 billion people without a bank account. Anyone can invest in Libra and begin trading. It is also a digital currency that can be sent and received among users.
- 7. What can you buy with Libra coin?
Facebook will launch Libra together with the Calibra wallet. This will allow users to send and receive funds from other users. The company also plans to facilitate transactions using the coin. As early investors, Uber and eBay will be the first companies to allow Libra coin transactions for their products and services. Facebook predicts that Calibra will enable users to shop effortlessly and more outlets will be glad to embrace Libra as a viable payment system.
- 8. Is cryptocurrency the same as digital currency?
Cryptocurrencies are reputable for their decentralized distributed ledger systems. Take Bitcoin, for instance. Anyone with the right equipment can mine Bitcoin, which is regulated by millions of computers and nodes distributed across the network. Libra, on the other hand, will launch as a permissioned blockchain, which means only a handful of people will be tasked with verifying and governing the ledgers. This makes it more of a digital currency than crypto, but it still bears the intrinsic features of crypto.
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