Why Should I Buy Cryptocurrency… Is it Really Life-Changing?
Cryptocurrency has been the talk of coffee shops all over the world. Everyone has heard stories about people investing very little and gaining life-changing amounts. The ability to trade anywhere in the world, with a phone/computer and an internet connection is a game changer. With the possibility of cryptocurrency taking on the banking system, resulting in the globalisation of money, it’s never been a better time than the present to buy cryptocurrency, and explore this space early before it really rockets. 🚀
What is a Crypto Currency?
A cryptocurrency (often called tokens) is a digital currency that can be exchanged/traded online for goods and services. It’s nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralised networks using blockchain technology — enforced by a massive network of computers.
Why are cryptocurrencies popular?
Cryptocurrencies appeal to people for a variety of reasons and speculations. Blockchain technology is now more popular than ever, and cryptocurrencies such as Bitcoin or Ethereum have become household names. But what are the main reasons why so many people consider cryptocurrencies to be the future of money?
Are cryptocurrencies decentralised?
Decentralisation is the main technological advantage of cryptocurrencies like Bitcoin. Simply put, blockchain-based cryptocurrencies have no centralised servers – the Bitcoin network is made of thousands of fully independent nodes spread across almost all continents and countries in the world.
Everyone can run a node from their favourite cryptocurrency – usually you just have to download a software client, and keep it connected to the internet.
In practice, the fact that cryptocurrencies utilise a completely decentralised network to process the transactions is a revolutionary technological breakthrough. Blockchain is a peer-to-peer network, meaning people can have a way to directly send money to each other, without any centralised intermediaries such as banks.
In traditional banking systems, like the ones that control British Pounds and U.S. – central banks have full control over the financial systems, with truly decentralised cryptocurrencies like Bitcoin, nobody has the power to manipulate the network.
Cryptocurrency is a more feasible and faster way to move money
Centralised intermediaries like banks consume tremendous amounts of time and resources. Removing them greatly enhances the efficiency of sending and receiving financial transactions.
Traditionally when sending a large money transfer to a bank account in another country using a traditional bank wire it would take at least a couple days. When using Bitcoin, the same amount can be transferred within an hour, and some cryptocurrencies are much faster than that!
But the main advantage of cryptocurrency transactions isn’t just speed, but also security. All financial data stored on the blockchain is heavily secured.
You can trade and make money fast as the value changes
Of course, cryptocurrencies would never get as popular as they are now if they weren’t profitable. Thanks to blockchain technology, hundreds of millions of people around the world gained access to life-changing earning opportunities.
Cryptocurrencies like Bitcoin are deflationary, which means that they have a fixed max supply. Politicians and bankers can always print more dollars or euros, but nobody in the world can create more bitcoins than the max supply of 21,000,000 BTC.
But cryptocurrencies can be profitable not only as a long term investment. Because the crypto market is highly volatile and the prices change all the time, trading cryptocurrencies can generate a lot of profit in the short term as well.
Will the price of cryptocurrencies blast up towards the moon?
The advantages of cryptocurrencies are numerous. It’s obvious that crypto is not just a passing fad, but a groundbreaking technology which has tremendously changed the world of finance.
When we take all the benefits of blockchain technology into consideration, it becomes clear why so many experts are convinced that the prices of cryptocurrencies will keep increasing. Cryptocurrencies are decentralised, efficient and profitable, and anyone can use them to massively improve their personal finances!
Are cryptocurrencies a good investment?
Cryptocurrencies are hot commodities. Whether you have a large amount of capital at the bank stuck in a low interest savings account, or even some extra money lying around, cryptocurrency investment is something you cannot take for granted. Many investors don’t yet realise cryptocurrencies can help them make huge amounts of cash, and potentially give more bang for the buck.
Earlier this year Tesla invested $1.5 billion in bitcoin in order to accept it as payment. It’s usually a good sign if large companies are investing, but be warned, the cryptocurrency market is very speculative. Values seem to fluctuate depending on the media.
A high risk investment, due to the volatility of the crypto market is what scares many traders. However, with automated trading robots and trading platforms, investors and traders are starting to join crypto markets with little experience and knowledge. Trading robots can help the trader to perform trades automatically by evaluating multiple factors which affect the price. This enables all traders, even beginners to make use of every opportunity that presents itself.
If you have decided to invest in the cryptocurrency market, as with any other investment, it is important to do some research beforehand.
There are a lot of exchanges to choose from, each offering different tokens and products. In all trades, even cryptocurrencies, reputation will always count. Before you create an account with an exchange, Thorough research the exchange that you consider to trade on. Learn more about the security of the website and its weaknesses. Listen to what other users say about the exchange. Read reviews, watch Youtube videos and talk to more experienced investors, lastly research what the exchange say about themselves.
When researching, look at all the negative stories that the company would not like you to know. When doing your research, also, ensure you choose the best digital currency to invest in. This will also have a large impact on your investment.
Know How to Store Your Digital Currency
To store your new digital currency, you will need a wallet. They are necessary tools for the user to receive and send digital currency and check the balance. Wallets can be software or hardware, although hardware portfolios are considered to be more secure. For example, the Ledger wallet just plugs into a computer’s USB port.
In contrast, a software portfolio such as MetaMask can be accessed anywhere with an internet connection.
While the balances and transactions of a bitcoin account are recorded on the blockchain itself, the private key used to sign new transactions is kept within the ledger’s wallet. When you try to create a new transaction, your computer asks the wallet to sign it and then sends it to the blockchain.
With wallets, you get private keys and secret phrases, keep these safe and preferably don’t keep them on your computer, incase you get hacked. Write them down and keep them safe. 🔒
Diversify Your Investments
The major advantage of diversification of currencies is minimising the risk. Undoubtedly it holds true when you’re investing in cryptocurrency as well. Even though, eliminating the risk is almost impossible in cryptocurrency investment, just like in other trades. Trading in different crypto assets and taking advantage of passive income made on stablecoins reduces the effect of loss from any other asset.
Diversification of assets provides the trader or investor with the opportunity to learn more projects and tokens. Many people are currently aware of Ether and Bitcoin, but at the same time, they are not familiar with the other thousands of crypto assets on the market. With in-dept research many opportunities are created, with high chances of more profit in the long run.
Where can I buy/trade Cryptocurrency?
Here’s a list where you can buy and trade cryptocurrency. Some are exchanges, some are platforms to buy from and some are wallets. Whichever way you plan to buy your cryptocurrency, you must do your homework to ensure you understand how the platforms operate.
Coinbase was the first major cryptocurrency company to be publicly traded on the Nasdaq. It was listed on the 14th April 2021. It is one of the leading crypto exchanges in the world.
According to Coinbase, 98% of digital currency is stored offline in vaults and safe deposit boxes. The company has a 48-hour withdrawal cancellation option in place to protect users from fraudulent activity and extra security, allows investors the option of adding a second person’s name to the approval list.
Coinbase accepts payment by credit and debit cards. It’s free to swap cryptocurrencies on the platform.
Binance is one of the world’s leading cryptocurrency exchanges. The selection of cryptocurrencies is massive and the trading fee is just 0.1%.
Out of all the exchanges, the Binance app is the most practical to use and it’s very easy to leverage tokens. It’s o.ne of the most downloaded apps in the UK.
In the MetaMask wallet you can store Ethereum based cryptocurrencies, along with NFT’s (non-fungible token). NFT’s are digital assets, like an original piece of art or a video with an attaching token to it, claiming that its the original version.
MetaMask acts like a bridge to the Ethereum blockchain, it allows you to send and receive Ethereum faster. For the best experience download the browser extension.
Top Ranked Cryptocurrencies (01/07/21)
These are the 10 largest cryptocurrencies by market capitalisation as tracked by CoinMarketCap, a cryptocurrency data and analytics provider.
|Binance Coin||$435.00 USD|
|Internet Computer||$148.87 USD|
|Bitcoin Cash||$956.73.00 USD|
Prepare for Volatility
The cryptocurrency market is volatile. I guarantee that the prices above have changes dramatically from the time of writing this. You’ll see dramatic daily swings in prices. If your investment portfolio or mental wellbeing can’t handle that, cryptocurrency might not be a wise choice for you. Many people stick to index funds.
There is a massive cryptocurrencies hype. The market is super speculative and news changes daily along with valuations. If you do your research and keep yourself updated with all the current news and trends, you can capitalise from trading. If you plan to participate, buy some Cryptocurrency conservatively to start. Should you want to start leveraging and borrowing money do your research first.