What you should know about cryptocurrency
With cryptocurrencies, you can use them to pay for goods and services and also use them for trades with immediate edge which is very handy. Cryptocurrency is a form of digital currency that is become increasingly popular worldwide and causing quite the ruckus. It uses an intelligent technology called blockchain to secure online transactions and verify them.
Cryptocurrency used to be almost entirely online, however, over time, it is becoming more significant and skyrocketing in value. It skyrockets when speculators drive the prices by becoming interested in cryptocurrencies as a whole and buying into it in hopes of selling it on to others for a higher price in the future.
How many cryptocurrencies are there?
In this current day, there are over 6,000 different cryptocurrencies worldwide that are traded publicly. They continue to skyrocket and while there are most definitely a few high-ranking fan favourites out there, every single one has worked hard for its spot in the cryptocurrency world. There are definitely some cryptocurrencies that are far better than others and others are far more high-ranking, here are some of them and their market capitalization.
- Bitcoin- $969.6 billion
- Ethereum- $222.3 billion
- Tether- $33.1 billion
- Binance Coin- $30.5 billion
- Cardano- $28.3 billion
- Polkadot- $28.1 billion
- XRP- $24.4 billion
- Litecoin- $15 billion
- Chainlink- $13.3 billion
- Bitcoin Cash- $13.1 billion
Are cryptocurrencies a good investment?
In essence, cryptocurrencies are generally a god investment among people who really and truly know what they are doing, however, for people who go out on a whim and decide to invest, that is when trouble arises. Some people actually do not see Bitcoin as an investment at all and prefer to refer to it as a speculation instead. Basically, cryptocurrencies don’t actually generate a cash flow and for you to profit from them, someone needs to pay you more than you paid for them.
That is what is referred to as ‘the greater fool’ in the investment world. On top of this all, cryptocurrencies are extremely volatile which makes them quite terrifying to new investors. The key to it all is never investing more than you’re willing to lose, this way, if you are to lose the investment, it doesn’t set you out too much. Bitcoin can actually be an awesome little investment to keep in your clutches, and as long as you have done your research and are prepared for the market volatility, you will be absolutely fine.
Should I buy cryptocurrency?
Depending on your situation, cryptocurrency could be great for you. Realistically, a yes or no answer will not suit everyone because it all depends entirely on you and what decisions you are willing to make. What you need to keep in mind is the fact that all cryptocurrency is highly volatile and speculative, so you must be prepared for this.
Other ways of investing are definitely far less volatile than cryptocurrencies, especially Bitcoin, but at the end of the day, if you feel it is right, cryptocurrencies can be a great investment.
