Cryptocurrency has been quite the buzz among techies, investors, and your out-of-nowhere investment guru friends alike. All of them have been singing the same song, “You have to try cryptocurrency!”
If you haven’t bought into cryptocurrency yet, then maybe you just haven’t found the right reason. Or maybe you just don’t know enough about it to feel comfortable investing your hard-earned real money into virtual money. If you’re not curious enough about cryptocurrency to take a class but interested enough to read a short article, then this one’s for you.
What The Heck Is Cryptocurrency?
To put it as simply as possible, cryptocurrency is encrypted virtual money. You can buy it online, and its price depends on what the market is like for it.
Many people love cryptocurrency because of the financial power it gives regular people. With no centralized body that manages cryptocurrency, the network handles confirming—or mining—all cryptocurrency transactions.
Once you purchase cryptocurrency, it is put into an app called a wallet. You can make purchases from or do business with anyone who accepts cryptocurrency. You can even use it in brick-and-mortar stores that offer touch-and-go pay options.
One of the prime features of cryptocurrency is the safety it provides. Each transaction goes through an encrypted verification process and then onto the blockchain ledger. The transactions are encoded with difficult math problems, and people in the network compete to crack the code using hashes. Whoever cracks the code to a transaction first authorizes it.
Once someone authorizes the transaction, it goes on the ledger, and then it’s final. Anyone in the chain can see the ledger, but they can’t make any alterations to it because it’s encrypted. The process is transparent and more secure than an armored truck.
With its combination of encryption security and transparency, cryptocurrency is a viable way to buy, sell, and trade. The blockchain technology makes virtual money a safer option for paying online than credit cards in many cases.
No Middle Man
One great thing about cryptocurrency is that it cuts third parties out of transactions. When you make a purchase with a debit or credit card, there are three parties involved in the transaction.
When a merchant charges your card, the funds aren’t immediately or directly taken from your account. They charge your institution, and then the institution charges you extra for doing the transaction for you.
With cryptocurrency, the transaction is between you and another person only. You don’t have to pay fees for cryptocurrency transactions. Nor do you have to wait days to see if a transaction has gone through on your account. The moment a transaction is processed, your wallet is debited and the merchant credited for the price of the goods.
You can convert cryptocurrency into cash in most countries, and there won’t be any fees because there’s no third party involved. You can also use it to exchange currency by purchasing cryptocurrency in one country and cashing it out into whichever country’s tender you want. It provides a way around exchange rates because of its universal value.
Investing In Cryptocurrency
If you’re thinking about investing in cryptocurrency, then you need to learn as much about it as possible. Just like all markets, it’s volatile. It’s not like fiat currencies where countries can control the value of their currency. People’s willingness to invest in it determines the worth of virtual money.
If you want to invest in cryptocurrency, but you don’t know the first step to take, then find someone who does. You need the help of someone who knows what the best cryptocurrency to invest in is, how much to invest, and when to sell. If you’re a broker ever in need of a FINRA lawyer, firms such as Herskovits Law PLLC in New York have your back. A FINRA attorney can help cover your bases during investment disputes.
You’d have to be extremely lucky to be the next person to invest $30 in Bitcoin and wake up a millionaire ten years later. To succeed as a cryptocurrency trader, you’re going to need to plan and execute. If you’re not an expert, then you shouldn’t invest in it without consulting someone who is.