Should You Invest In Cryptocurrency? Where To Start?

That, along with "what the heck is a cryptocurrency?" and "Can you actually invest in this stuff, or it’s just pure speculation?" In this educational piece, I aim to answer these questions as fast as possible.

Should you invest in cryptocurrency?

Before answering “yes” or “no” to whether or not you should invest in cryptocurrency, let me first clear some other questions that will lead you to make a decision that is suitable for you.

What Is a Cryptocurrency?

A cryptocurrency is a form of decentralized digital currency that can be used in many places as legal tender to do things such as settle debts and buy goods and services.  You can consider cryptocurrency as a cross between a conventional fiat currency, like the USD, and an asset, like Amazon’ stock.

There are over 2,000 different cryptocurrencies. But Bitcoin is the most famous of them all.

Can You Actually Invest In Cryptocurrency? Or Is It Pure Speculation?

You can invest in crypto. But there are some key differences between cryptocurrency investing and regular investments.  Here are a few:

  1. Cryptocurrency is all digital, so there is no paper money.
  2. Cryptocurrency exchanges are not federally insured like banks are. If someone hacks your account or if your exchange shuts down the government will not reimburse you for the money you lose.
  3. Cryptocurrency is decentralized. That means it is not attached or guaranteed as currency by any particular country or government entity. This decentralization allows crypto owners to make transactions without oversight from governments. While some may consider it a benefit for various purposes, it can also make unauthorized transactions impossible to reverse.
  4. There’s not much history behind cryptocurrency price volatility. So traditional technical analysis may not work until the market matures a bit.
  5. If you consider crypto as an asset, you’re betting on the blockchain technology behind the crypto. However, fundamental analysis of cryptocurrencies is very different than that of traditional assets like equities.
1 2 3 4
View single page >> |

 For more information on cryptocurrency investing, please get your free copy of my book, Cryptocurrency Investing ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.