Cryptocurrency is nothing new at this point, but it remains a mystery to so many people who aren’t actively involved in it. Is it cash? Is it tangible? Can you lose it? How does it compare to actual money?
If you’ve been interested in cryptocurrency but you aren’t sure about the basics, you’re not alone.
Thankfully, it doesn’t have to be as complicated as you might think. Whether you want to learn about investing with crypto or learn more about cryptocurrency exchange with low fees when you’re traveling abroad, you can!
Let’s dive into a few basic facts about cryptocurrency so you can feel more confident talking about it and investing with it.
There Are More Than You Think
When most people think about cryptocurrency, Bitcoin comes to mind. It remains the “king” of crypto, but there are actually over 4,000 cryptocurrencies out there today. You can become an investor in one of these virtual currencies easily.
If you do, however, understand that crypto is extremely volatile. It has no tangible financial backing, and you’ll start to see it going up and down in leaps and bounds throughout the day. If you’re new to trading and looking for something different, cryptocurrency is a great option. But, it’s important to understand how it operates within the stock market.
It is Decentralized Money
The government controls most of your money, no matter which country you live in. One of the reasons so many people are hesitant about cryptocurrency is that it isn’t federally-controlled. It’s managed by private encrypted databases. They are called blockchains, and they’re the bread and butter of the cryptocurrency market.
Blockchains help to create digital records of cryptocurrency, keeping everything organized, almost like uploading that information into the ‘cloud’.
What Can You Use Cryptocurrency For?
So, if crypto is “only” a form of “digital money”, how can you actually make tangible money with it? What is it used for, and how have so many people found financial success with it?
There are several ways to “use” it once you’ve collected it. For example, if you decided to invest in crypto and you made a profit, you can use it as you would “regular” money in a variety of ways. Some online retailers allow you to pay with Bitcoin – you simply need to link your account. You’ll enter the number of Bitcoin you want to pay with, and the retailer will take that out of your account as though you just paid with cash or a credit card.
Additionally, you can transfer your cryptocurrency to a debit card. Many major credit card companies will accept cryptocurrency, so once you load it onto a card, you can use it just like normal money if you have to buy something in-person. Simply put, having cryptocurrency is like having a digital wallet. Not every company is on board with Bitcoin and the like just yet, but be patient. If you like going the digital route, do your research when it comes to crypto. Now could be the perfect time to make a solid investment in something different.