As more businesses accept cryptocurrency and the blockchain technology that facilitates its operation, you may inevitably have to learn the dynamics of the crypto world and even consider investing in it.
Bitcoin has outperformed many traditional asset classes this past year.
While there are differing opinions about Bitcoin and other cryptocurrencies, this asset has catapulted in popularity and is gaining widespread demand from individual and institutional investors alike.
If one thing is for sure, cryptocurrency is not going away and is rapidly becoming mainstream. As more businesses accept cryptocurrency and the blockchain technology that facilitates its operation, you may inevitably have to learn the dynamics of the crypto world and even consider investing in it.
Here’s what you need to know about this asset class:
- What is cryptocurrency?
- How to invest in cryptocurrency.
- What to consider before investing in cryptocurrency.
- How to make money with cryptocurrency.
What Is Cryptocurrency?
Cryptocurrency is any digital currency, secured by cryptography, which is used as a medium of exchange that allows peer-to-peer transactions.
Bitcoin, the first blockchain cryptocurrency, is a form of digital currency invented in 2009 by an anonymous founder using the pseudonym Satoshi Nakamoto. Cryptos aren’t managed by a bank or public agency. Instead, transactions of cryptocurrency tokens are typically recorded on a public blockchain – comprised of digital information stored on a database.
Blockchain technology is used to keep an online ledger of all the transactions, and it provides a data structure for the ledger that is considered secure.
Unlike fiat money (government-issued currency), which is controlled by central banks, cryptocurrencies do not require banks to verify transactions and are independent of a central banking authority.