What new investors need to know about the world’s premier cryptocurrency
I believe that most of us in the personal finance space are looking for safe and reliable ways to grow our money. The majority of us are seeking to lower our debts, build emergency funds, make some side income, and find something to invest in.
People tend to invest in a few things when looking for ways to grow their income:
- Themselves (through education)
- Themselves (through preparation)
- Securities (such as stocks, bonds, and mutual funds)
- Real estate
- Precious metals
Another avenue of investment that is growing more popular every day is investing in cryptocurrencies.
I like to write for people that are new to personal finance. There may be a few of you who have heard the term cryptocurrency, cryptos, and bitcoin before, but you aren’t exactly sure what they are. Allow me to take this opportunity to bring you up to speed.
According to blockGeeks.com cryptocurrencies can be described as an internet-based medium of exchange that uses cryptographic functions to conduct financial transactions. One of the biggest selling points of cryptocurrencies, or cryptos, is that financial transactions can be conducted peer to peer and are not regulated by a central authority, like a bank.
At the time of this writing, there are around 1600 kinds of cryptocurrencies in existence. Arguably, the most popular cryptos to own are Bitcoin, Ethereum, and Litecoin.
Many of you might be wondering exactly what Bitcoin is. Attention paid to Bitcoin seems to grow as its price grows and then fades as the price decreases.
Bitcoin is the first decentralized digital currency. You can think of Bitcoin in modern times much the same way you would think of gold before the early 1900s. Like other cryptos, Bitcoin can be traded peer to peer over the internet and are not regulated by a central authority. This decentralization offers Bitcoin a few advantages over conventional currencies.
- Fees on trading…