What is Crypto Currency
Cryptocurrency is a digital currency that I believe is going to change the way we do business transactions around the world and has been growing at an exponential pace. Cryptocurrency is an electronic peer to peer system. Digital currencies are used as forms of payment to purchase products and services the same way you use fiat currency. The most common cryptocurrency in the world is Bitcoin, but it is not the only coin on the market used as a currency. You may have heard of the term altcoins which just abbreviations for alternative coins to bitcoin.
There are also crypto tokens that use smart contracts. Most people are unaware there is a difference between crypto coins and a crypto tokens. Tokens are a digital asset compare to a currency that represents an asset or utility. Tokens can be used for virtually anything from commodities, rewards programs to voting systems. It is essential to realize that all coins and tokens are referred to as cryptocurrencies. Many cryptocurrencies you have heard of do not function as a currency. One thing they all have in common is they use blockchain technology.
Each transaction is recorded on a “public record” called the BLOCKCHAIN. Many people don’t understand how blockchain technology works and this deters some people from investing and using cryptocurrency. One of the attractions to cryptocurrency is the privacy that is built into the nature of cryptocurrency. It uses cryptography to create an uncrackable code from legible information for tracking transactions. Many cryptocurrencies make transactions anonymous, so no one will be able to see your name; however, all transactions are recorded on the public blockchain ledger. To learn more about Blockchain and how this revolutionary technology is going to change the digital world, click here.
Why Crypto Currency
Huge Growth Potential– I am sure you have heard before the best time to invest in a company is the early stages to obtain returns you could never imagine, well the same goes for investing in cryptocurrency and altcoins. Understanding blockchain and how cryptocurrencies work is very intimidating and is the main reason why people stay away. In addition, navigating through the process of choosing an exchange, securing investments in a private wallet, to sending and receiving can be confusing and complex. This is the exact reason why you should think about investing and jumping on the bandwagon earlier than the general population.
Although it might seem like it’s too late to get in on the profits, there’s still a lot of opportunity for growing your wealth through cryptocurrency investing. In saying that it’s important you do your research and invest wisely, just as you would any other kind of investments, and only invest what you can afford to lose.
CryptoCurrency Can’t Be Frozen – Have you ever heard the horror stories of people having their bank accounts frozen, even when they didn’t do anything wrong. When you have bills that need to be paid, it’s stressful to not have access to your hard-earned money. With cryptocurrency, because it’s not centralized or regulated by an authority, it can’t be frozen. You always have access to your cryptocurrency doesn’t matter when and where you are.
No Limits – Many banks and financial institutions impose transaction limits. For example, you may only be allowed to deposit $2,000 in your savings account each month. Or you must maintain a certain balance to avoid account fees. You’re even limited by how much money you can withdraw from an ATM. Cryptocurrency doesn’t place limits on your transactions.
Low to No Transaction Fees – Many cryptocurrencies don’t charge transaction fees, allowing you to save money on purchases. Banks and other financial institutions, including PayPal, sometimes charge transaction fees. With cryptocurrency, you can send money internationally without a hefty transaction fee.
Better Identity Protection – Cryptocurrencies can keep your identity hidden during a transaction. The only information that the other party would see is the total amount of changing hands. When you pay with a debit or credit card, sensitive information is transferred that can be misused or stolen.
Invest, Trade or Both?
When you decided to get started in cryptocurrency, you should first decide whether you will only invest by buying and holding, trade or a combination. Those who plan on buying and trading cryptocurrency will need to create an account with a cryptocurrency exchange. If you plan on only investing and holding it is highly recommended you do not leave your investment on the exchange and to store your investment in a private wallet.
If you plan on trading I recommend that you invest in an education platform to teach you the skills of trading cryptocurrency, the one advantage of learning how to trade its a skill that you can use amongst other industries such as forex and stock markets. Another important aspect of learning how to trade is to surround yourself with a like-minded community who will support you through your educational journey.
Finding a reputable education platform can be challenging and I spent lots of time and money finding one that works for me. If you are interested in learning how to trade please contact me directly.
Find a Cryptocurrency Exchange
Choosing a reputable exchange is important and plays a role in being successful with cryptocurrency. Expert investors advise to diversify your investments, and the same applies to the crypto market. You shouldn’t invest all your money in one coin.
Another factor you must look for in exchange is high liquidity. If there aren’t a lot of buyers and sellers, transaction times take longer. This is especially important if you plan on trading crypto.
Naturally, security is another primary concern when searching for a good cryptocurrency exchange. Coins should be kept in cold storage where they can’t be accessed by hackers. Other signs of good security are the availability of 2-factor authentication and email encryption and verification.
Some of the most highly reputable exchanges on the market are Coinbase and Binance. There are several exchanges on the market, be careful and do your homework on exchanges before you sign up with an exchange. To learn more about how to buy cryptocurrency download my free Guide to Cryptocurrency Ebook or visit my How to buy the Bitcoin section.
Most importantly, you should continue learning about cryptocurrency and how to successfully invest in it. This guide is only a brief explanation for research purposes on what cryptocurrency is and how to get started. You must delve deeper and spend time learning about the cryptocurrencies you plan on investing in.
Although it might seem like it’s too late to get in on the profit, there’s still a lot of opportunity for growing your wealth through cryptocurrency investing. As long as you dedicate yourself to learning about cryptocurrency and invest in a variety of the top cryptocurrencies, you can succeed.
Watch this video to get a better understanding of blockchain technology which is the foundation behind the cryptocurrency industry.
**Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. This information is for research and education purposes. It is not a recommendation to invest or trade cryptocurrency or trade forex
**Risk Warning: Trading leveraged products such as Forex, CFDs and Cryptocurrency’s may not be suitable for all investors as they carry a degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary seek independent advice.