So what is cryptocurrency? It's a digital currency. And it's also called the Internet of money. Anybody can use it, you don't need permission from, say the government to be able to use cryptocurrency. And it's actually being considered by many as the future, our currency.
Cryptocurrency is appealing because it is not issued by any central authority. And so it's theoretically immune to government interference or manipulation. Another great factor about cryptocurrency is that it allows you to pay somebody directly without the involvement of a bank or a corporation. Because today when you're paying somebody if it's not through cash, there usually is a bank or a corporation that has to be involved in the transaction such as PayPal, Apple Pay, etc. And they not only charge you for your time Transactions but they also monitor your transactions. So if you pay the wrong person or for whatever reason, you violate their terms, your account can be terminated.
We are moving towards a cashless society. And it's better that people have control over their money, rather than a bank or a corporation or even a government having control over it. Another reason why people buy cryptocurrency is that they want to profit from short term gains for long term investment purposes. And also just to avoid supporting the Fiat system (typical government-issued currencies) and the Federal Reserve.
As of the time of this writing, there are over 2000 different types of cryptocurrencies. And the most popular one, of course, is Bitcoin. It's currently priced at around $9,500. But the good news is that you can buy a fraction of it and there are currently 21 million bitcoins and then that is actually the limit to how many bitcoins there are. So just like gold, there is a limited supply. But not all cryptocurrency has a limited supply and if you want to buy bitcoin or other cryptocurrencies you purchase them from exchanges. The exchange I use is Coinbase.com.
Coinbase is a popular site to buy bitcoin but there are other sites as well. It is easy to open an account and you could have your first cryptocurrency today. Cryptocurrency is getting more popular as more people realize the profit potential from buying and selling cryptocurrency.
There are some risks with cryptocurrency.
The primary risk is its volatility. Volatility got out of hand in 2017 when the price of most cryptocurrency skyrocketed above 1,000% and then came crashing down.
So, as is true with any investment, be sure to do your due diligence before investing.
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