I’m sure a lot of you have heard all about Bitcoin in the news and how many people have become millionaires off investing in Bitcoin. Currently, there are groups of people who have always been involved with cryptocurrency, those who just started recently (like myself) and those who are skeptical and think it is most likely a scam. Well I for one will tell you it is definitely NOT a scam but you should still invest at your own risk just like you would with the stock market.
What exactly is cryptocurrency and Bitcoin?
Bitcoin is the first decentralized digital currency where transactions can be made with no banks! Yes no banks. This is fantastic for sending money to ANYONE across the world in a couple of minutes for no fee.
What technology is behind cryptocurrency?
Cryptocurrency uses blockchain technology that is decentralized, meaning that it is not controlled by a central authority like a bank for instance. Decentralized means that it operates on a peer-to-peer basis and what I personally like about it is that, my identity, personal assets and data will belong to me and not a central authority. There is also more security behind blockchain technology than using a central system. For instance, by storing data across a blockchain network, the blockchain eliminates the risks that come with data being held centrally. Its network lacks centralized points of vulnerability that computer hackers can exploit.
Will cryptocurrency and blockchain have any purpose in the future?
YES! It definitely will. Blockchain technology is the future. In a world where hacking has become a scary reality and where we don’t have as much control on our data this is truly enlightening and will change the future. Right now, it currently has value in financial transactions but its possibilities are endless. I think it would personally serve a great purpose in the medical field as well.
How can I start investing in cryptocurrency?
This would be a great question to answer for another blog post, so if I see there is a huge response with this article I will publish a How To Guide on getting started with investing cryptocurrency.
Which coins should I start investing in?
I personally cannot tell you what coins you should invest in, I believe it is important to do your own research on each coin, what its purpose is and the team behind the coin. I also recommend staying on top of the cryptocurrency news on Twitter. One advice I will give, is that you can go to bed soundly at night if you invest among the Top 10 coins currently which you can view by clicking here.
But cryptocurrency isn’t even real money how is this an investment?
It really depends how you look at it. I see dollar bills as just a means to distribute money and wealth and digital currency is exactly like that. Digital currency DOES have value and that is all you really need to hear when it comes to investing. It has value that will grow, but that could also make you lose on your initial investment. But nothing is ever golden with investing.
I have taken the risk and seen nothing but great returns, I started seriously investing in November 2017 and have seen my initial investment increases by 5X which is quite amazing. I think its a great way for us millennials to dabble in investments with what little money we have and I cannot wait to see what happens with it.
Feel free to share your thoughts and ideas on cryptocurrency and where you feel it will be headed!
***DISCLAIMER***
I highly do not recommend taking out loans to invest in cryptocurrency, only put in what you are comfortable loosing. Also you have to be patient, don’t expect to be $10,000 richer in just 1 month. Be patient, do research and invest with purpose. For more information regarding a lawyer’s perspective on cryptocurrency please visit Hogan Injury by clicking here to learn more!
Kgrant