Have you been keeping up with the news on cryptocurrency lately? Do you know all the info you need to know about Bitcoin? Have you heard about Gemini? What about Facebook’s new and upcoming Libra?
Trust us when we say, these are all relevant questions that you should know the answers to before continuing with this article.
If you do have all the necessary knowledge in that beautiful brain of yours, it’s time to learn a thing or two about investing in cryptocurrency markets.
What to Know: The Basics
Cryptocurrency hasn’t been around very long; in fact, many people didn’t even know what the term meant up until a couple of years ago – when Bitcoin was released in 2009.
What’s more, is that Bitcoin didn’t gain popularity until 2013, so technically speaking, people didn’t know what the term cryptocurrency meant until that later date.
Why does it matter that it’s a new investment potential? Well, that’s a great question, but we’re sure you can muster up some kind of answer in your head pertaining to the inability to fully develop well.
Don’t think we’re knocking the new technological, digital money; because we aren’t. However, it is a good idea to be skeptical before jumping headfirst into the mess.
Cryptocurrency is indeed digital money that was created and managed using carefully thought-out algorithms and encryption cycles. The currency is not controlled or backed by any government affiliation, meaning that there is no grounded platform to keep an eye on the risky money transactions and transfers that happen behind the scenes.
In most cases, the “mining” process that runs the program is quite complex. It’s very difficult to have a transaction or a transfer go wrong – but there is still the potential risk of it happening.
More often than not, such potential risks will only occur when the system crashes or when a hacker gets in and decodes the encryptions. But still, you should be aware of what could go wrong before getting involved.
Another factor to keep in mind is that the value of a cryptocurrency can change over a small amount of time; it’s not like diamonds, where the cash-in amount is always in the high dollar signs. Cryptocurrency could get as low as worthy pennies, but it could also go higher than a hundred thousand. The gamble is always a high risk.
So far, there hasn’t been drastic reasons NOT to invest in the cryptocurrency market, but there also hasn’t been a real go-to reason TO invest in the cryptocurrency market, either. Yes, it could mark a huge change in the world of money, or it could potentially take away people’s investments.
We think it’s safe to say that almost every investment known to man has that 50/50 chance – the question is, are you willing to take it?
If you still have questions, keep searching for your answers. We know we wouldn’t give in just because everyone’s trying to tell us this could be ‘the next big thing.’