What is Cryptocurrency? Here Is What You Should Know

The world’s current monetary system has its challenges, with oppositions to central banks and government controlling the money supply. The use of credit cards and wire transfers for transactions are becoming outdated. In most cases, the banks and brokers take a share in these transactions, making it expensive and sometimes slow. Because of this, financial inequality is increasing. 

As of 2019, three billion people don’t yet have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance. That’s like half of the world’s population. 

Are you new to Cryptocurrency? This article will teach you how to use ‘Crypto’ – a new form of digital money – to solve some of the world’s problems like we listed in the paragraph above. 

A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.

Very Short History On Cryptocurrencies

Bitcoin was the first established cryptocurrency. Cryptocurrencies like Bitcoin are created through a process called mining. To mine Crypto simply means solving complicated problems (with the use of powerful computers) by a technology known as Blockchain. If you’d like to have a better understanding of this ‘crypto-mining’ process do leave a comment let us know or send an email to info@femme-minty.com. 

Until 2011, Bitcoin remained the only cryptocurrency. To improve its design for things like speed and security Litecoin was created which aimed to become the silver to Bitcoin’s gold. Right now there are more than 4,000 cryptocurrencies in the world, and the number is expected to increase in the future. 

Why Should You Start Thinking Of Cryptocurrency?

Take Back Control of Your Money 

Dollar, Naira, Euro, etc., are non-crypto currencies whose control is to the Central bank and the Government. At any point, your government can decide to freeze your bank account and deny your access to your funds. A practical example of this is this news on Sahara Reporters.  

Enjoy Lower Transaction Fees

Every time you make payments using naira or dollars, your bank (who’s the middleman) or a digital payment service takes a cut. Transaction fees are lower with bitcoin than with credit cards, and when cryptocurrency is not exchanged (like the exchange from Naira to $), it also eliminates the need for bank charges. 

Other benefits of cryptocurrency include Reduction of fraudulent activities, Immediate transfers and No barriers to Trade

Analyze, invest, and profit

When you’ve narrowed down the cryptocurrencies you like, you must then identify the best time to buy them. For example, in 2017 many people started to believe in the idea of Bitcoin and wanted to get involved. Unfortunately, many of those people mismanaged the timing and bought when the price had peaked. Therefore, they not only were able to buy fewer bits of Bitcoin (pun intended), but they also had to sit on their losses and wait for the next price surge.

However, by analyzing the price action and conducting proper risk management, you may be able to stack the odds in your favor and make a ton of profit in the future.

Should You Invest in Cryptocurrency?

Like any other investment, you should weigh the potential gains against your own risk tolerance. If you tend to be more risk-averse with your investments and you’re looking to build wealth over decades, cryptocurrencies probably aren’t for you. 

No one can accurately predict what will happen to the market for cryptocurrencies. Yes, that’s technically true for all investments. But other markets – say, the stock market – grow much more consistently, with significantly less volatility. Indeed, it may be misleading to even call it “investing” to buy Bitcoin. It would be more accurate to refer to it as speculation.

So the most important thing, as with any potential investment, is to have a clear idea of the risks you’re taking. You shouldn’t put yourself in a situation where your financial health is dependent on the success of cryptocurrencies. However, if you’re well aware of the risks and you want to give it a shot anyway, you may get lucky.

Leave a Reply

Your email address will not be published. Required fields are marked *

Newsletter

Join our community of likeminded women and sign up to our monthly newsletter with tips, advice and great content on building financial wealth

Most Popular