In two years, you’ll wish you got into cryptocurrency when you had the chance.
There is no better time than now to invest in the future of money. If you have $1,000, $10,000 or even $100,000 laying around in your bank account that you won’t need for a while, consider putting it into cryptocurrency.
The return on investment (ROI) of cryptocurrency has been historically high – as high as 35,000% over the last five years. But what exactly is it? What are some of its advantages? Which cryptocurrencies should you buy? Why should you invest in it? How much money can you make? And who should be investing: experts or novices?
What is Cryptocurrency?
About two weeks ago I was introduced to the world of cryptocurrency by a friend, who is a crypto expert. Up until that point I had barely heard of it and knew really nothing about it. He casually mentioned that he’d made a lot of money trading Bitcoin, Ethereum and Litecoin and that he’d show me how to do the same.
This was music to my ears as I’d just sold my two apartments in Brooklyn and had some cash to invest. After some initial research, I was intrigued at the prospect of making so much money from something so new, so risky, yet potentially revolutionary.
My friend recommended Coinbase as a great place to start for someone like myself who had no idea what they were doing. Coinbase is basically like your bank for cryptocurrency – you store your money there, you can trade on their site and you can even switch between currencies within their app. The app is very simple, which is great for beginners!
The cool thing about Coinbase is that it also has a vault feature where you can store and move your money too. This is great because if you have a lot of cash and are worried about security or online theft, then this would be the best way to protect yourself against it.
Cryptocurrency and Bitcoin are popular topics in today’s media. We see coins like Bitcoin rise exponentially, making early investors into millionaires. We also hear about how the price of Bitcoins can be volatile and can drop just as quickly as it rises. Many people don’t know what cryptocurrency is or how it works, and that makes it hard to decide if investing in cryptocurrencies is something they should do. The point of this blog is to help you understand what cryptocurrency is, so you can make an informed decision about whether or not you want to invest your money in it.
So what exactly is cryptocurrency? Cryptocurrency is a digital currency that uses encryption technology to facilitate secure and anonymous transactions between users. This means that no banks are involved and no one person controls the currency. It also prevents double spending and counterfeiting of the currency.
The first cryptocurrency, Bitcoin, was created by Satoshi Nakamoto in 2009. Since then, thousands of other cryptocurrencies have been created by companies around the world and many more are being developed right now. These companies create their own cryptocurrencies that they sell on exchanges like Coinbase or Kraken in exchange for other currencies like US dollars or Euros. There are also many other ways to buy cryptocurrencies such as peer-to-peer exchanges or local
Everyday people ask me about crypto currency and whether or not they should invest.
My answer? It depends.
No, I’m not being a smart ass. It just depends on who YOU are and how YOU will handle investing in crypto.
Here’s what I mean:
Do you have any money? Good, then you can invest in cryptocurrency! If you have extra money laying around that you don’t need to live day-to-day, then you are good to go. It doesn’t matter if it’s $10 or $10,000, every dollar I get into crypto will be considered an investment. I’m literally throwing my money at the wall hoping that some of it sticks.
I’m looking at this as a long term play. How many years? At least 3-5 years. That’s the time horizon that I’m thinking about when talking about cryptocurrency (and honestly most stocks).
It’s been a good year for cryptocurrencies, with the total market value of all digital assets jumping from around $17.7 billion in January 2017 to more than $600 billion by December.
Bitcoin, Ethereum, Ripple and other cryptocurrencies have seen their value soar over recent months, with Bitcoin peaking at nearly $20,000 per coin. With so many people making money on the back of cryptos, we take a look at what you need to know about investing in the cryptocurrency market.
What are cryptocurrencies?
Cryptocurrencies are virtual currencies that use blockchain technology to track transactions through a network of computers. They can be used as an alternative currency to buy goods and services, but many people buy them as an investment, hoping that the value is pushed up because others want them in the future.
Is it easy to make money on cryptocurrencies?
That depends on your appetite for risk. Cryptocurrencies are new and untested; there is no guarantee that they will work in the long term or even survive over the next decade. There’s also no guarantee that governments won’t introduce restrictions or bans on them – something which has already happened in China and South Korea.
However, if you do invest, it’s likely
What is Cryptocurrency?
Cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography. Cryptocurrency made the leap from being an academic concept to (virtual) reality with the creation of Bitcoin in 2009. While Bitcoin attracted a growing following in subsequent years, it captured significant investor and media attention in April 2013 when it peaked at a record $266 per bitcoin after surging 10-fold in the preceding two months. Bitcoin sported a market value of over $2 billion at its peak, but a 50% plunge shortly thereafter sparked a raging debate about the future of cryptocurrencies in general and Bitcoin in particular. So, will these alternative currencies eventually supplant conventional currencies and become as ubiquitous as dollars and euros someday? Or are cryptocurrencies a passing fad that will flame out before long? The answer lies with Bitcoin.
Bitcoin has indeed experienced some rapid surges and collapses in value, reaching as high as $19,000 per bitcoin in December of 2017 before returning to around $7,000 in the following months. Cryptocurrencies are thus considered by some economists to be a short-lived fad or speculative bubble. There is concern especially that the currency units, such as bitcoins, are not rooted in any material goods.
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are a kind of alternative currency and digital currency (of which virtual currency is a subset).
Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.