Forget everything you’ve heard about cryptocurrencies and bitcoin. This beginner’s guide will walk you through the basics of how and why to invest in cryptocurrencies – without being an expert yourself, or having an advanced degree in finance and economics. You don’t have to be Warren Buffet to make money with cryptocurrencies, but you have to know what you’re doing.
What exactly are cryptocurrencies?
To understand why you should really invest in cryptocurrencies, let’s start with a brief overview of how they work. The two most popular examples of these assets are bitcoin and ethereum, but there are many others. Many readers are already familiar with these assets; for those unfamiliar with them, here is an introduction to what cryptocurrencies are and why they are important: cryptos are a digital assets created to function as a medium of exchange relying on cryptography to secure transactions and control the creation of additional monetary units. There have been many attempts to create cryptocurrencies over time using various approaches.
Why are cryptocurrencies popular right now?
For decades, financial pundits and scholars have been predicting that we are about to witness a shift to electronic money. This is one of the times they were right. The world has never seen anything like bitcoin. According to some analysts, if bitcoin continues on its current trajectory, it could even supplant state-backed currencies as the benchmark currency in some regions.
Where can you get them?
One of the most common ways to acquire cryptocurrencies is through specialized sites, such as Voytegeon. Read more about this brokerage service in Voytegeon Review which is full of details regarding their trading conditions and terms. Once you’ve opened an account, you can deposit fiat currency and use it to buy bitcoins and other digital assets. As for where to store them, there are two main options: a hot wallet (i.e. software installed on your computer) or a cold wallet (i.e. hardware that does not is never connected to the Internet). Hot wallets are useful if you plan to spend your cryptocurrency quickly, but they are also vulnerable to hacking since they are connected to internet at all times.
Can they be used safely?
In short, yes. While it is true that cryptocurrency transactions are irreversible and have no consumer protection, many people use this type of currency because it is inherently trustworthy. The code behind these currencies is open source and decentralized; it runs on thousands of computers worldwide at any one time, making it virtually impossible to manipulate or reverse a transaction. Since no authority can inflate supply at will or manipulate interest rates, some users trust these systems more than traditional money.
Can you make money investing in cryptocurrencies?
Over time, cryptocurrencies can certainly be profitable. However, it’s really important to do your own research before you start investing because if you don’t, you could lose it all and never get it back. Some of these cryptos are scams and some are not going to last, so be sure to do your research. Once you have done your research and think a certain crypto is worth investing in, proceed with caution! Just like when we invest our money in any other type ofasset, we should never put all our eggs in one basket.