Many people within the digital marketing sphere are either self employed, or small business owners. Whilst both of those working styles have their perks, often lucrative pension plans aren’t part of the package. That means we need to be a bit more creative when it comes to preparing for our financial future. But what is crypto? And how can it form part of our strategy?
An Introduction To Cryptocurrency
Cryptocurrency is a form of digital currency, created and stored electronically. It can be transferred securely from one person to another, without the need for a central bank.
The first cryptocurrency (and arguably the most famous) is Bitcoin. This currency was created in 2009, but there are now over 1000 different types of cryptocurrencies in circulation.
With Bitcoin you can make instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate, with no central authority or bank. It means that process of managing the transactions and the issuing Bitcoin is carried out collectively by a network.
Although Bitcoin has been criticised for its high electricity consumption, price volatility and thefts from exchanges, it is here to stay and if you want to prepare for your financial future, you should consider it as an option. As cryptocurrency is a digital currency, that is created and stored electronically, it can be used to buy goods and services, or it can be traded like stocks. There’s the potential to earn high rates of interest from Bitcoin, which is an exciting prospect for investors.
How To Invest In A Cryptocurrency
When it comes to investing in cryptocurrencies, the first thing you need to know is that there are two types of coins:
- Bitcoin (BTC)
- Ethereum (ETH)
Bitcoin is a digital currency which has a limited supply and can be used as a store of value. Ethereum on the other hand, is a cryptocurrency, but it also has its own blockchain. Due to that blockchain, Ethereum can be used as an asset for any type of transaction or agreement.
If you’ve made the decision to invest in cryptocurrency, the first step is is to buy some coins. There are three ways to do that:
- Use a credit card, debit card, or a wire transfer to buy Bitcoins from a Bitcoin Exchange.
- Buy Bitcoins with cash from someone who already has some on an exchange.
- Buy shares in Bitcoin mining companies, which will give you a share of the profits generated by the company’s mining operation.
The Best Way To Store Your Crypto
Cryptocurrencies are digital assets, which are not regulated by any government or organisation. Instead, they are verified by the network of computers. As a result, there is no way to reverse a transaction in cryptocurrencies, so you need to take extra care when sending cash.
If you lose your wallet, or it’s hacked, there will be no way to recover your coins. To avoid this, you should have a safe wallet for coins, both online and offline. That way you can have the possibility of recovering your money if something goes wrong with your device or computer. The best way to store cryptocurrencies offline would be with a hardware wallet. These wallets allow you to store your private keys offline.
Conclusion And Takeaways
As a result of the popularity of Bitcoin, many investors are looking for ways to invest in the cryptocurrency. The price of Bitcoin has been increasing steadily over the last few years and it is expected to continue on this path.
If you decide to invest in Bitcoin, it’s important to know that there are risks involved and ideally, you should only invest what you can afford to lose. But if you do your research, then there is money to be made. Money that could help you in the future.
Note: this is a collaborative post.