CRYPTO Introduction Cryptocurrencies have become the hype over these past few years, especially after the price of Bitcoin rose significantly back in December 2017. Since this massive success and popularity, things have changed. The market has expanded and now sees even the smallest and least experienced investors participating in it. Crypto isn’t just what we call “online money”, it is also what is known as online business transactions, without which banks cannot function as they mostly rely on these transactions and have now moved their business totally online so that it is more accessible.
What is Crypto? Crypto currency is a medium of exchange created and stored electronically in the blockchain, using encryption techniques to control the creation of monetary units and to verify the transfer of funds. Bitcoin is the best-known example. It is a decentralised structure, meaning it can be bought, sold and exchanged without the use of an intermediary such as a bank. Satoshi Nakamoto, Bitcoin’s developer, first described the necessity for an “electronic payment system based on cryptographic proof rather than trust.
Buying Cryptocurrency Most bitcoin and other crypto purchases are made through cryptocurrency exchanges. One may buy, sell and hold cryptocurrencies on exchanges and opening an account is similar to opening a brokerage account in that you must authenticate your identity card and offer funding source such as a bank account or debit card. You need a cryptocurrency wallet to store your crypto currencies in. Because cryptocurrency transactions must be validated by miners, each purchase may take 10 to 20 minutes to appear in the account. (https://www.forbes.com/advisor/investing/what-isbitcoin)
Should one invest in cryptocurrency? Financial experts often warn that cryptocurrency is one of the riskier investment choices. The cryptocurrency market is a volatile one so there can be dramatic swings in prices. Although it is all the rage right now it is still in its infancy, so the recommendation often given by advisors is to keep it as a ‘side investment’ and not too large a portion of one’s portfolio. (https://www.forbes.com/advisor/investing/what-is-bitcoin)
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