It’s on the rise, so it’s worth learning about.
If you’ve taken note of cryptocurrency and its continual rise in the news and elsewhere then you’re just as much on top of the matter as many other people, meaning you might not have a clue what the hell it’s all about. But if you are hip to the idea of what cryptocurrency is and have been involved in it then this article is bound to be as basic as it can be. Some of us are up on the latest trends either before or right when they hit, and this is one that’s been building for a while. A lot of people might tell you that it’s fairly simple to get into, but until you learn a little more about it the whole concept is going to be like learning a foreign language without the benefit of a translator.
In other words, if you find that you want to get into cryptocurrency after reading this, you’re better off finding someone that’s been dealing in crypto for a little while rather than doing it on your own. So, let’s get into it, yeah?
First things first. What is cryptocurrency?
Well, the first thing you need to know is that cryptocurrency is digital, and it’s decentralized. Also, there are literally thousands of different types of cryptocurrencies out there, so if you’re an indecisive individual you might need to let someone get you started with a couple of popular currencies and then pay attention to them as the interest in them rises and falls. If you’re not one for the stock market or following investments then you might not be turned onto this quite so easily. There’s no need to worry if you’re not, this type of investment isn’t for everyone and yeah, it can be confusing as hell.
You might have heard tell of Bitcoin, or Dogecoin, or several others. Bitcoin is one of the most well-known currencies at the time and was created back in 2009. That should tell you that the interest in crypto has been building for a while, and that people have been keeping the faith for just as long. The fact that this currency is entirely digital means that there’s no physical wealth to worry over, as the crypto is kept in an online wallet that a person can use to buy or sell during an online exchange. Keep in mind that it requires a hefty investment though, since one dollar doesn’t equal one coin unless the worth of the currency is extremely low. Typically you’re going to need to invest, at the bottom line, $100 to $1,000 if you really want to start off with crypto. It’s possible to start out with less, but the climb is going to require knowledge of the market and a further investment at a later date, count on it.
Transactions made with crypto will be recorded on a ledger that’s also decentralized. This is known as a blockchain, and each time a transaction is made with crypto, the added transaction is tacked on to the blockchain, which is essentially a public database where transactions are stored. That might sound sketchy, as though just anyone can find out anything about anyone else by looking at the blockchain, but personal data is protected.
So, what can you do with it?
While you can make purchases with it, invest with it, and watch it grow as it sits, or fall in value, crypto us useful, even though there have been plenty of debates over whether it’s really a suitable currency in this day and age. To be honest, it hasn’t seen the same kind of favor that regular currency has as of yet, it does have a limit to its use, and it’s not exactly the most stable currency at the moment. In other words, it’s on the rise, but it’s still not reliable enough to be used in a widespread manner.
As of right now there are a lot of people that use crypto as an alternative investment, something that might appreciate and become a fortune later on. A lot of folks tend to buy up several cryptocurrencies if they can afford to do so in the hope that one or two of them will become the proverbial oil well that will grant them the fortune they so desperately hope for. Cashing out for profit later on is one of the main reasons why people are buying crypto at this time. It’s a hope and prayer at times, but it’s also a gamble that a lot of folks have been more than willing to take since to be honest, it is an idea that’s beginning to gain ground.
As I mentioned above though, it’s gamble, and even investing isn’t guaranteed to bring anyone a return. Kind of like the stock market, crypto is something a person needs to pay attention to and learn as they go, with help as they need it. Honestly, staying as well informed as possible and reading up on anything and everything you can find that has to do with crypto is advised as well.
There are a few terms you should be able to recognize.
Just like any other system that’s been set in place there is a lingo to cryptocurrency that one needs to know in order to get a grip on what’s going on. It’s not exactly a new dictionary of terms, but there are a few things you might want to bone up on before jumping into this venture.
- Blockchain: As described above, this is a database that holds each digital transaction and is stored in groups, aka blocks. There are new blocks being created all the time, which in turn creates a chain. Blockchains grow continuously as people buy and trade cryptocurrency, and serve as a roadmap for what’s been going on.
- Decentralized: Simply put, this indicates that this currency doesn’t have the backing of a financial institution or a central bank.
- Bitcoin: This is first and currently most popular crypto created.
- Altcoins: This is pretty much any coin that’s not Bitcoin, and there are a LOT of these out there.
- Exchange: This is the market where you cany buy and sell crypto.
- Wallet: This is where you story your crypto currency. Many sites offer a digital wallet for investors.
There aren’t a lot of terms to learn initially. As long as you have these down you should be golden.
How safe is it?
Security measures that are taken by each site that’s decided to hitch their wagon to the cryptocurrency craze are fairly secure if not impregnable, well, as much as anyone can make it. Being decentralized might make some folks nervous, but it does add a little bit of security that people can rely on.
If you want the honest answer, it doesn’t matter how secure a system is, there are bound to be flaws. Cryptocurrency is still in its infancy compared to hard currency that people still rely on every day, and without being centralized it does run the risk of existing on the winds, so to speak, as all people can really do is keep hold of their own account and hope that it finds a nice, stable current to ride for a while.
This isn’t the type of money that the FDIC is going to insure, so if you end up losing everything you invest it’s on you and you alone. It pays to diversify when investing in cryptocurrency since there are a lot of different stocks out there that might rise consistently, or fall every now and then. Like other investments, this is where a person needs to know when to follow the trend or learn to follow their instincts and buck it just a bit.
What does the future look like for cryptocurrency?
As of now it would appear that Bitcoin and a few other cryptocurrencies have done quite well over the years. Some of them have doubled as of 2021 and look to be climbing still, while others have stabilized or started trending downward.
It’s uncertain whether the growth is sustainable at this time though, as there’s still a lot of speculation as to whether crypto can last for an extended amount of time. There are plenty of major players that are validating crypto, but it remains to be seen if they and the many that are growing interested in this investment will be able to normalize it enough to make it the next big thing when it comes to how we invest.
WTR? (Why’s That Radass?)
Crypto isn’t 100% stable yet, but it does appear that plenty of people are pushing to make this happen, and it’s possible that in another several years there could be many changes to come. If you’re the type that has patience, and a need to be up on the latest trends, it would be wise to consult someone that knows a little about crypto. Going it on your own is possible, but it’s a lot more work, and a lot less of a sure thing than it already isn’t.
