Cryptocurrency – WTF
If you are like us, that’s what we said when we first heard about cryptocurrency. What the f*#! Is it? And that was a decade ago, yet we still find ourselves asking similar questions.
Let’s face it. Cryptocurrency is still complicated to most people. Bitcoin first came about in 2009 and since then, many other forms of crypto have appeared in the digital space as competition. And some have become very stable and investment-worthy such as Ethereum, Ripple, Litecoin, and others.
Simply put, cryptocurrency is a digital or virtual currency. There are many advantages to using cryptocurrency. First of all, it eliminates the need for a governing body (ie, banks). Transfers are done from peer-to-peer with no middleman or third party.
Other advantages include its highly secure and confidential nature. Any transaction done with cryptocurrency is encrypted, safe, and basically anonymous. No one can get the chance to spy on your financial activity or get your details from your account history, such as banks would. Only you have the power to view your recent transactions. This makes it practically immune to counterfeiting.
Since there is no middleman or third party interaction, there are little to no transaction fees for using your own money. A crypto transfer is relatively simple and straightforward. No agents, brokerage fees, commissions, and extra fees are needed, which just makes way for a fast, easy, and cheap transaction.
Additionally, trading anywhere in the world is instantaneous. What used to take days or weeks on end can be transferred in a matter of seconds. Since these are online transactions that do not need to be passed on from one bank to another, the waiting time for money transfers is reduced, no matter where you are in the world.
However, like everything else in the world, there are some cons. There are always ups-and-downs with new-ish concepts and its no secret that the cryptocurrency market can be volatile. So you have to be agile with your decisions and think about what will be best for the current amount of assets that you have.
Because of this, you should also have a diverse portfolio. Like the stock market, don’t put all your eggs in one basket. Do your research and see which coins are thriving well, with the most-used cases that you can benefit from.
Lastly, be vigilant. While cryptocurrencies have higher safety ratings than traditional money, it still pays to be on the alert. If you want to trade or own large amounts of crypto in your mobile wallet, you have to be prepared against the risks and vulnerabilities that you are opening up yourself to.
Like any skill, it takes time, practice, and constant learning to find out how you can maximize the potential of your virtual coins—whether you want to use it for trading or daily transactions. Mastering the world of cryptocurrencies is no different but certainly doable. This sector will only grow in the future as the world adapts and takes on the needs of the post-modern population. A number of these coins are already in use and circulation today, and it will be a great investment opportunity for those who want to participate in trading them.
