Cryptocurrency: The Currency of the Future

Let’s say you’ve opened your Twitter or Facebook account, and you’ve been seeing the word “Cryptocurrency” for a long while now. You might be wondering what and how it works. Not to mention why people these days get hyped over it. It is everywhere. It’s becoming more and more popular, and people are getting into this type of digital investment.

Since you’re here currently reading this, it’s no doubt that your curiosity—and perhaps even interest in the cryptocurrency are piqued. Chances are, you might be asking yourself now. How does it work? How do they earn through cryptocurrency? Is it safe? Is it worth the hype and the risks? Which is the best Cryptocurrency to invest in?

We will dig into that, but let us start with: What is Cryptocurrency?

Digital transactions have been the trendiest mode of payments and transfers of money ever since the massive evolution of the internet world. One of the factors why this has become the most in-demand method of transaction is the convenience it provides—where cryptocurrency also takes pride in.

Cryptocurrency, wherein “crypto” is a shortened term for cryptography; a practice of securing information that allows only the sender and recipient to interpret the encrypted message it contains, is a means of exchange used to buy goods and/or services with the security provided by cryptography.

What makes Cryptocurrency different from the traditional investment?

Unlike stock, Cryptocurrencies were not designed to be like the old-fashioned investment. It does not pay dividends or interests. Rather, it is a good investment when the value increases, and you sell your tokens or coins at a profit.

Is Cryptocurrency safe?

You most probably heard about Bitcoin. It is one of the most popular decentralized digital currencies. Unlike banks which are either owned and controlled by the government and private individuals, Bitcoin and other cryptocurrencies destroy the concept of putting trust in certain institutions or individuals in managing all the transaction details.

Think of it as a giant spreadsheet. Instead of having a trusted institution or a group of people to maintain all the transactions taking place in cryptocurrencies, every single entity involved in the said transactions would have access to the spreadsheet. Not only does it provide convenience as it is accessible 24/7 worldwide, this ledger system that cryptocurrencies such as Bitcoin provide also ensures better security from hackers. Because, unlike banks, other parties or authorities do not have access and cannot verify the identity of the participants.

Now, you arrived at the question: Which is the best Cryptocurrency to invest in?

There are hundreds of cryptocurrencies available.

First off, it is best to note that even the media and known financial-related content on the internet sometimes talk about Bitcoin as a synonym of Cryptocurrency. As the first cryptocurrency, it is by far the biggest and is the most valuable. 

However, as stated earlier, there are hundreds of available cryptocurrencies aside from Bitcoin. Some of these are Ethereum, Tether, Binance Coin, Dogecoin, Cardano, etc.

How do you start investing in Cryptocurrency?

1.     Choose a platform where you can buy cryptocurrencies. As had been stated above, cryptocurrencies work without the control and access of government and private institutions. Everyone who takes part in it has the spreadsheet or the ledger. Cryptocurrencies cannot be purchased and exchanged through banks and brokerage firms. Some of the available platforms where you can buy cryptocurrencies are the following:

·        Coinbase

·        eToro

·        Binance U.S.

·        Unifimoney

·        Gemini

2.     Do not pour every penny you have. It is best to allocate only a small percentage of your spare money to your chosen cryptocurrency. Investment, after all, in whatever form it is, is risky.

3.     Secure your cryptocurrencies. There are keys or wallets that are available online to help you store and secure your cryptocurrencies. You can check out some digital wallets such as:

·        Coinbase Wallet

·        BitGo Cryptocurrency Wallet

·        Exodus

Additionally, there are also offline wallets that provide better security as it can store your information away from the eyes of the online world. An example of this is a USB device. Other than these, you can also install mobile wallets, or use your desktop as your personal vault.

From the best cryptocurrency to invest in to how you want it secured—everything boils down to your preference.

With the way the world is digging further into the digital age, it is no wonder why Cryptocurrencies have been making noises everywhere. As more people get interested and turn their attention to these decade-old virtual currencies, their value would continue to surge. It is not a faraway dream or a nonsensical statement to say that it might be the currency of the future.

Remember to invest early—but wisely. Enjoy the convenience and the benefits you may reap from investing in Cryptocurrency.