Cryptocurrency for Beginners: 5 Tips and Tricks
When people think of cryptocurrency, “complicated” is probably one of the first things that come to mind. The concept has been around for over a decade, but many still don’t have a complete grasp of it—and who can blame them?
When Bitcoin first emerged in 2009, it grabbed the attention of the finance and tech industries. For a while, people didn’t seem to care—until it started to cost $19,783 apiece back in 2017. This was perhaps the peak of the hype surrounding cryptocurrencies, and suddenly people wanted to be in on the trend.
Since the inception of crypto, other altcoins have appeared in the digital space to serve as competition. The likes of Ethereum, Ripple, Litecoin, and more have also become stable and worth investing in as technology brings in the age of e-wallets and cashless payments.
What is Cryptocurrency ?
Before moving further along, it would be helpful to get on the same page. Simply put, cryptocurrency is a type of money that only exists electronically—digital money, if you will. The technology behind it aims to solve some of the most significant pain points about traditional banknotes.
For one, blockchain technologies eliminate the need for having a governing body, such as a bank, to print and issue it. Transfers are done from person to person, not having to go through an intermediary. This also spells out instantaneous transactions that do not get imposed with high fees. Let’s run through the different advantages of owning cryptocurrency below.
Top Advantages of Cryptocurrency
Swifter, cheaper transactions – Instead of having to go through all the legalities and unnecessary steps when sending money to another person, a crypto transfer is relatively simple and straightforward. No agents, brokerage fees, commissions, and extra fees are needed, which just makes way for a fast, easy, and cheap transaction.
Secure and confidential dealings – Any transaction done with cryptocurrency is encrypted, safe, and basically anonymous. No one can get the chance to spy on your financial activity or get your details from your account history, such as banks would. Only you have the power to view your recent transactions.
Financial freedom for the unbanked – Globally, there are around 7 billion unbanked adults. This means they have no account with any financial institution or mobile money provider. This could be because of the strict application process and requirements financial institutions require from their depositors, which can be a great hindrance to many. Since that does not exist with cryptocurrency, a person can easily make an account right away.
Quick international trade – What used to take days or weeks on end can be transferred in a matter of seconds with crypto. Since these are online transactions that do not need to be passed on from one bank to another, the waiting time for money transfers is reduced, no matter where you are in the world.
A growing investment opportunity – It has been a while since Bitcoin arrived, and now there are around 5,000 different altcoins in circulation today, serving over 20,000 markets. This sector will only grow in the future as the world adapts and takes on the needs of the post-modern population. A number of these coins are already in use and circulation today, and it will be a great investment opportunity for those who want to participate in trading them.