How to invest in cryptocurrency
Digital currency is slowly becoming the next big thing. But for many of us, the idea of money that is not paper-based can seem scary, or even crazy. But more and more people as well as companies, are seeing the benefits of using digital currency, or ‘cryptocurrency’, and the banks are starting to notice.
This blog article will explain how you can invest in cryptocurrency, and why you might want to. It will also explain the basics of cryptocurrency and why it is a better alternative to the banks.
What is cryptocurrency?
Cryptocurrency, or digital money, is a currency that is stored and created online. The most popular example of this is Bitcoin. Cryptocurrency uses encryption to regulate the generation of the currency and make it secure, as well as to verify each transaction. It is through cryptography that cryptocurrency exists and allows for exchanging digital information.
Why should you care?
Going back to Bitcoin, the value of Bitcoin has risen dramatically. In 2009, when Bitcoin was released, 5000 Bitcoin (BTC) was worth $27. Now, 5000 Bitcoin is worth $12.5 million US dollars. That is a massive leap. Not only that but retailers are starting to accept Bitcoin as a valid form of payment, an example being Microsoft.
How do you invest?
Even though you may not understand fully what cryptocurrency is, you can’t deny that it makes sense to invest in this new digital currency, given its rate of growth. To invest in cryptocurrency, again, we use Bitcoin because it is the most popular and user-friendly.
Choose a Bitcoin wallet
Before you invest in cryptocurrency, again, we will use Bitcoin, you need an online place to keep it secure. Think of it as a Bitcoin bank account, except online only and digital. A Bitcoin wallet allows you to keep your Bitcoins save so you can store them.
Choose a Bitcoin exchange
To invest in Bitcoin, you can use your own currency to purchase Bitcoin. Once you have done that, you set up a Bitcoin wallet, which is a digital wallet for making sure your Bitcoins are always safe and secure. Depending on where you are based in the world, and your currency, you can find a Bitcoin exchange where you can exchange your local currency into Bitcoin, or whatever other cryptocurrency you are interested in.
Why should you invest?
Cryptocurrency is really taking off and the banks are noticing. With the increased growth in cryptocurrencies and the increased alarm from the banks, it is only a matter of time before this new type of currency becomes known as a bona fide currency, just like cash or PayPal.
Think of this as the crest of a wave. Once you invest in a crypto currency you can choose to spend it or save it, and watch it increase in value for years to come. Just like real money. The more the banks acknowledge digital currency and the sooner companies embrace it, the better off the world may be.
After all, with digital currency, when the economy goes into recession, those who were wise enough to invest and believe in cryptocurrency will have the final say.