Why Everyone Is Talking About Crypto
Everyone is talking about bitcoin, dogecoin, Ethereum…etc. But what exactly is it and why are people raving about it? In simple words cryptocurrency is a form of money that is made up of digital data. Cryptocurrencies operate under ‘decentralized control,’ which means they are not governed by a single individual or government. Bitcoin does not require the use of a bank to store or conduct transactions. Unlike centralized currency which is regulated by the government. Cryptocurrency is heavily relied on the current market value and based on that your token represents a certain quantity of cryptocurrency you possess. Once you have invested in the market you either sell or cash out the token at market value
Bitcoin was the first cryptocurrency to be released in 2009. Since then, plenty of other cryptocurrencies have entered the market and are making their way across. This just happens to be recognized as the future of the economy that people are investing in. Investing in cryptocurrencies and trading them differs from investing in traditional assets, although there are some parallels.
Like anything there are pros and cons to investing in cryptocurrency. A couple of the pros being the potential for massive return, unparalleled transparency, 24-hour accessibility, and being able to have complete control over where your money goes and when you want to pull off the investment. While there are many pros it is important to be careful. Some of the cons include increased volatility that is targeted towards hackers. Secondly Challenges of market fluctuations. When there is no guarantee that the market will be up the next day it makes it risky and harder to understand. In addition to this since there is no guarantee there is no security of what you’re investing so it’s very important to do lots of research.
– Inaz Budhwani