4 Things You Should Know Before Buying or Investing in CryptocurrencyPublished November 9, 2021 by Elana K
Cryptocurrencies have been growing steadily in popularity over the past decade, with more and more people around the world beginning to invest in them and also using them to buy real products.
Cryptocurrencies have been growing steadily in popularity over the past decade, with more and more people around the world beginning to invest in them and also using them to buy real products. Cryptocurrency has taken off so much that it has even been designated as legal tender in El Salvador.
If you’re considering investing in cryptocurrency or purchasing some for daily use, here are 4 basics you should know.
1. Cryptocurrencies are volatile
If you’re looking for a solid long-term investment, cryptocurrency is not your best bet. Cryptocurrency is volatile by nature — if you’re comfortable with the ups and downs that are inherent to cryptocurrency, it can be a worthwhile investment. But if you’re someone who likes to follow their investments every day to see how they’re doing, you will be in for a roller coaster ride.
2. Thousands of cryptocurrencies
Bitcoin is the most well-known cryptocurrency, followed by a few others like Ethereum, Binance Coin, Dogecoin, and more. But in fact, as of 2021, there are nearly 6000 cryptocurrencies in all, making the market far more complex and fun than ever before.
3. Cryptocurrency isn’t legal everywhere
Cryptocurrency may be the hottest trend in finance, but due to its decentralized, digital nature, it’s banned in certain countries. Some people get around the bans by using VPNs, but that’s not strictly legal. If using cryptocurrency is important to you, you have to first make sure you live in a country that allows it.
4. Cryptocurrency can be used to buy things
Cryptocurrency doesn’t only exist in cyberspace — it can be used to make actual online purchases like food, cars, jewelry, tech products, and more. You can even use it to make deposits at online casinos or take out a mortgage! Cryptocurrency can also be converted to cash, usually via a crypto exchange or broker.
Educate Yourself Before Making the Jump
While the crypto market is volatile and not for the faint of heart, it definitely has potential for investors and consumers who wish to have more private records of their transactions. If investing in cryptocurrency is something that sounds like a smart financial move, make sure to speak with advisors or experts who can give you the best guidance for your personal situation.