It’s hard to believe that Bitcoin was only created nine years ago. Since then, it has grown into a multi-billion-dollar industry with thousands of different cryptocurrencies in circulation.
If you’re thinking about buying cryptocurrency, here are eight things you need to know before taking the plunge.
If you’re wondering about a topic covered in this article, or have questions of your own, please discuss it in the comments section below!
As with any investment, before you invest in cryptocurrency, know the risks and how to spot a scam. In addition, be sure to do your research before buying; there are many resources available online to help you make informed investment decisions. And if you run into issues, our Consumer Protection team is here to help.
Check out these eight things to know before buying any cryptocurrency.
1. Know whether you’re interested in an “alternative” currency, or a true investment opportunity.
Alternative currencies are designed as payment methods, while cryptocurrencies are designed as investments. These two types of currencies operate very differently and come with their own sets of pros and cons. Cryptocurrencies are also subject to extreme price volatility and are not backed by governments or central banks (the way most traditional currencies are).
2. Understand what blockchain means, and how it applies to cryptocurrencies.
Blockchain is the technology that enables cryptocurrencies like Bitcoin and Ethereum—it’s a digital public ledger of transactions that’s duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every
Before you buy cryptocurrency, there are a few things to consider that can help you make the best decision for your investment. As cryptocurrencies become a growing force in the digital world, more and more investors are jumping on board.
As of February 2018, Bitcoin is the most widely used form of digital currency in the world. This article will cover everything you need to know before investing in cryptocurrency, including what it is and some of the best cryptocurrencies available today.**
My first foray into the world of cryptocurrency was a bleak one. I lost $1,000 in bitcoin. My second venture was much more successful; I turned a measly $300 into about $4,000 of ethereum and litecoin in less than 6 months.
I have since sold out of all of my major cryptocurrencies and am now focusing on the smaller ones that are showing potential but are not yet mainstream. This is because there is still a lot of money to be made in emerging altcoins — if you do your research and invest wisely.
Before investing, there are 8 things that you should know.
Cryptocurrency. I know you’ve heard about it. It has been one of the hottest investments in recent years. And according to some, it’s the investment of the future. But before you rush out and buy the newest blockchain ETF or digital currency, you may want to read this first…
1. You can lose a lot of money
Bitcoin was worth $0.30 when it first launched back in 2009. In 2017, its value rose to over $5,000; in early 2018, its value plummeted to around $6,000; and as of November 2018, Bitcoin was hovering around $4,000.
Bitcoin is just one example of a cryptocurrency that has seen wild price swings over the past few years — and many people got rich during that time. But just like investing in any other asset class (e.g., stocks, bonds or real estate), you can also lose money when investing in cryptocurrencies like Bitcoin.
2. The market is still new
Although Bitcoin has existed since 2009, cryptocurrencies overall are still a very new asset class. The first major initial coin offering (ICO) occurred just three years ago (PDF) for Ethereum — one of the most popular cryptocurrencies today — which means this sector is still extremely
What is Cryptocurrency?
Cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.
Bitcoin Cash (BCH)
There’s a lot of hype and misinformation around cryptocurrencies, so I thought I’d write an article to help clear up the confusion. Cryptocurrencies are a relatively new thing, so it’s understandable that they can be confusing. In this post, I’ll go over the basics of what cryptocurrencies are and how they work.
I’m not going to go into technical details of how cryptographic algorithms work, but rather try to explain things in simpler terms. If you’re looking for more details about the actual technology behind cryptocurrencies, I suggest starting with the Wikipedia article on cryptocurrencies.
1. What is a cryptocurrency?
A cryptocurrency is a digital currency that uses cryptography to secure transactions and control creation of new units. It doesn’t rely on any central authority like a bank or government. Instead, it uses a distributed public ledger called the blockchain to verify transactions.
The first blockchain was created in 2009 by Satoshi Nakamoto for Bitcoin. Since then, many other cryptocurrencies have been created, with varying degrees of success.
2. How does it work?
To understand how cryptocurrencies work, first we need to understand where they come from: mining. Mining is the process by which transactions between users are verified and added to the blockchain public ledger through computing power (mining rigs). The