All investors dream of hitting it large. Having to make that one great trade that makes you enough money that you don’t have to worry about it for the rest of your life. To most, it’s just a dream. However, to those brave enough, investing early in certain trends can be hugely beneficial.
Cryptocurrency is one of those trends. Firstly let’s take a look at what cryptocurrency is and define it for those who may not understand. Cryptocurrency is an internet-based medium of exchange which uses cryptographic functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability.
That’s a big mouthful which boils down to cryptocurrency using technology to create a currency that cannot be corrupted, does not belong to any nation, and cannot be copied in any way shape or form. The most important feature of a cryptocurrency is that it cannot be controlled by any Central Authority. This decentralized nature of blockchain makes cryptocurrencies theoretically immune to the old ways of government control and interference. Cryptocurrencies function much like regular currency and can be sent directly between two parties via the use of private and public “keys” held in virtual “wallets” for very minimal fees, unlike traditional financial institutions.
Currently, most cryptocurrencies on the market are undervalued according to predicted growth, except for Bitcoin. Bitcoin in the last few years has taken off so dramatically that it has set an example of what is possible in the cryptocurrency market. Bitcoin is single-handedly responsible for most of the daydreaming traders who are searching for the next currency that will explode. Purchasing some of these undervalued currencies now while the prices are low it’s a great way to set yourself up for future profits when the next cryptocurrency boom reappears.
A lot of people are afraid to invest in this because of its volatility and fears that it will fail. These are understandable fears, however, nobody has ever made money without risking money. The prices of these currencies are so low that a couple of hundred dollars will buy you thousands of coins. Take these and put the coins away in your virtual wallet and forget you have them because nobody knows what the future brings and the coin you bought could be the next big thing, so strap in and head to the Moon!
Possibly the most important advantage of cryptocurrency is that only you are responsible for your coins and no third-party can control your money. Each transaction is final and there’s no possibility to counterfeit or reverse a transaction after a purchase has been completed. On the contrary, when using regular currencies and traditional financial institutions you run the risk of credit card chargebacks and PayPal refund scams.
Since cryptocurrencies are immutable this means nobody can counterfeit your money. Unlike regular currencies, where it can be quite difficult to tell if you’re holding a counterfeit bill or not, it is currently theoretically impossible to create a fake cryptocurrency.
Easy to Acquire
Cryptocurrencies are becoming easier and easier to acquire. Currently, there are ATMs placed all over the planet that can dispense Bitcoin and other popular cryptocurrencies in exchange for American dollars. This is a recent development as Bitcoin and other currencies have only to this point been available through online brokers. These online brokers offer purchases just like the Foreign Exchange Market to exchange American or other world currencies in exchange for virtual cryptocurrency.
This may all sound very complex on the outside but there are many websites available to you that can help you break down the terms, definitions, math-related issues such as sig fig help, and general know-how to function in the crypto markets. It can be extremely daunting at first, but once some of the definitions and scary words are out of the way it becomes quite simple and exciting.
It is currently expected that we are at the very beginning of a crypto bull run. This in layman’s terms means that the market is believed to be extremely underpriced for what the expected value will be in the coming years. Meaning that we are still in the very early stages of valuing cryptocurrencies and now is the correct time to buy to try and score a big hit.
Start collecting different cryptocurrencies and make sure to diversify your portfolio. There are quite literally thousands of cryptocurrencies available. Do your research, buy the coins you believe can add value to the market and hold on to them. You never know which coin will become the next big thing and make you a millionaire! Good Luck and happy trading.