Cryptocurrency. Chances are you have heard the word bandied about. You may have an in depth knowledge of it or you may still be scratching your head and wondering what is cryptocurrency. I’ve put together a few cryptocurrency basics to help you gain a bit of an understanding.

Cryptocurrency Basics

Cryptocurrency (a populra one is Bitcoin) took the world by storm, it seemed in 2017. It’s also known as digital or virtual currency. Much the same as other currencies, cryptocurrency allows its owner to buy goods and services with it. The concept is sometimes difficult to grasp but here are a few things I have gleaned in my research.

  1. It is a form of payment you can use in exhange for goods and services. In some instances you will need to trade your cryptocurrency for real currency to access some services.
  2. Cryptocurrency operates on a technolgy called blokchain — a decentralized technology that manages and records transactions.
  3. As of this month (January 2018) there are about 1,500 cryptocurrencies trading hands. It’s estimated they will continue to proliferate.
  4. They are popular because they are viewed as “the currency of the future.”  Other people like that it is a decentralized currency.
  5. Are they a good investment? Some say yes, others say no. The cryptocurrency goes up in value and it goes down in value, much the same as real currency.
  6. You can buy cryptocurrency through any of a number of different companies. You will buy it and store it in an online wallet that you have registered to use.
  7. Cryptocurrency is legal.

Many people who use cryptocurrency, currently, are those who are not adverse to some risk and uncertainty. You need to know how you feel about this rollercoaster ride before you jump in. To protect yourself in the cryptocurrency market you will want to know: Who owns the company you’re purchasing it from, who the other investors are, how much of a stake will you own and will it be in the company or in the cryptocurrency you’re buying, it is already developed or are you jumping into a start up?

Be aware, though, it is more of a conversation than can be had in a blog post. If you have questions, are curious or want to gain a deeper understanding, reach out to me. Let’s talk.

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