What Is Cryptocurrency and Why Are Investors Interested In It?
When talking about investments, cryptocurrency is an option that has been gaining attention over the past years.
Still, not everyone knows the details about this class of asset.
If you are planning to join the trend and invest your money into cryptocurrency, you might want to learn a little more about it.
Let this article be an introduction to digital currency.
Understanding Cryptocurrency: What Is It?
Cryptocurrency is considered the modern currency of today.
Think of it as the digital version of the coins and bills you have. Instead of having them in your wallet or the bank, they are in your e-wallet. You can use them as is or keep them and let them grow in value over time.
When Bitcoin started in 2009, not everyone seemed to pick the idea up, however, people started to pay attention to it as its value grew over the years, reaching $19,783 in 2017, and sitting around $80,000 per bitcoin as of 2021.
Over time, other types of cryptocurrency have appeared in the market, such as Ethereum, Ripple, Litecoin, and more.
Why Invest in Cryptocurrency?
If you wonder why people are leaning towards this type of investment, it is because of its many advantages. Here are some of the benefits that you would get from these digital currencies:
1. No Strict Application Process
Unlike banks that ask clients for several documents before allowing them to open an account, cryptocurrency is more lenient.
All you need to do is create a wallet, acquire some crypto and you can start transacting without any third party having to validate or approve you.
Nothing is stopping you from taking part in this new digital economy.
2. Faster and Cheaper Transactions
The main difference between cryptocurrencies and fiat money is how it is not under any governing body. That means the money is yours and you can do whatever you want with it.
You can directly transfer it to another person without approval from any institution.
Depending on the cryptocurrency you are using, the fees can be very low which becomes very valuable when doing large transfers because it is fast and the fees remain low.
3. Quick and Almost Real-Time Transfer
Online transactions, particularly international, take some time before reflecting in bank accounts.
That is not a problem with cryptocurrencies.
There is only a small waiting time necessary, and you can transfer money to anyone without the hassle of governing bodies slowing things down.
4. Tight Security
Cryptocurrency transactions are all encrypted.
On the ledger, the transaction details are available for all to see, however, your identity is not connected to the transaction.
Due to the nature of the technology, it is virtually impossible for fraudulent transactions to occur and as long as you keep your private key safe, your crypto is safe.
5. Fast Money Growth
Bitcoin has had 838,078,685% growth over the last 10 years!
Yes, you read that right, 838 million per cent growth, which dwarves any other asset class in history.
There has been a proliferation in the market with many new and exciting projects surfacing.
If you strike the iron while it is hot, you have a higher chance of gaining more from it.
Conclusion
People have many opinions about cryptocurrencies, just like how they have many comments on all other investments.
Hearing mixed views about the topic can be confusing to anyone.
Before you accept everything you hear as truth, make sure that the news comes from reputable sources.
If you plan to invest, you should accept that every investment comes with risk.
You need to be prepared and have the best strategy to make the most out of it.
Our goal at B4biz is to help the everyday person embrace digital currencies and be part of the global digital economy.
In order to achieve this goal we have created an in-app marketplace for shopping, a stable currency for daily transacting, a crypto token with real world applications and are leveraging 30 years worth of global business connections to bring our members the most robust user experience in the market today.
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