What We Have Covered in This Article
- 1 The Utility of a Cryptocurrency: Privacy
- 2 Fast Transactions with Low Commision Rates
- 3 Accepted Through Many Places and Websites
- 4 Investing in a Cryptocurrency
Last Updated on February 25, 2021 by Editor Futurescope
Investing is one of those activities that can either improve your life greatly over time, or just ruin it if you make the wrong decisions. Overall, it is an incredible method to amass some fortune from money you are not using as often, or money that you have saved thanks to years of effort.
Of course, most people would claim that saving is a much safer, viable alternative, since you don’t have to partake in the risks of investing. With that said, there are safe ways to invest that will, although minimal, increase the amount you initially started with.
But that’s the deal: taking risks is what creates profit, and nowadays, the profits of what are known as cryptocurrencies keep increasing over the years. We have BitCoin as a solid example. Back when it started to flourish, you could find one for around $100. Now, a single BitCoin can cost more than $40,000.
Cryptocurrencies have gained so much strength over the years, that even Elon Musk and Tesla invested around $1,5 billions in BitCoins, and of course, this increased its value by 4.78%.
But how a type of digital currency has gained so much strength in the market? What makes cryptocurrencies so valuable? And as a newcomer investor, is it safe to take the step towards investing in a cryptocurrency?
There are many things to consider, but the most important one is understanding how to approach the investing process, as well as understanding why cryptocurrencies have value.
The Utility of a Cryptocurrency: Privacy
As mentioned in this article, the main feature behind cryptocurrencies, such as BitCoin, is its capacity for private transactions. Since cryptocurrencies are known for being untraceable, since they are not owned by a centralized organization capable of using such information, transactions cannot be traced.
This, of course, has a good side and a bad side. If you are someone who wants to escape from an abusive partner or family, having access to an untraceable form of currency can help you a lot. It also helps if you want to undergo a private health procedure, or an operation outside of a place with laws that can be described as oppressive.
On the other hand, we have illegally performed activities, which can be unethical and straight up atrocius, such as human trafficking, contrabands of illegal goods like drugs, blackmailing, among many other examples.
Fast Transactions with Low Commision Rates
Another big aspect of most digital currencies is that you have the ability to perform transactions with just a phone, internet connection, and a couple buttons. Most websites, known as trading sites, charge a small fee for their services, but they provide enough benefits for it to be worth it.
Good examples of the benefits you can enjoy from said websites include valuable information about cryptocurrencies, investment possibilities, trading, market tracking, and digital wallets. Good examples of this is the PKT site, with information related to different types of currencies for you to invest.
These websites are probably the most commonly used forms of investment when it comes to trading and investing as well.
Accepted Through Many Places and Websites
Now, believe it or not, a lot of cryptocurrencies have been accepted all around the world, not as a method of payment for different establishments and services, but as a method to have access for their specific currencies.
By having cryptocurrencies in your digital wallet, you have access to several forms of currencies all around the world depending on the trading site you decide to use. Still, the wallet you own will, most of the time, be allowed for use in these trading sites, so you shouldn’t have any worries.
Still, there are places who have started to allow the use of certain cryptocurrencies as payment. The United States, Canada, Australia are good examples of places where you can use a cryptocurrency as payment for certain services.
Investing in a Cryptocurrency
Now, any form of investment requires a mindset to follow, and this can be slightly different with investing in digital currencies like these, yet the main concept of investing is the same: putting some of your money into an asset that will, eventually, yield some form of profit.
Considering how volatile most cryptocurrencies are, you have to make sure to know what you are doing. BitCoin, for example, once had its price dropped from 19,000 to 7,000 and it remained close to that last figure.
There’s some predictability to it, though, and you can follow certain influential patterns, like how prices of currencies rise up when they are mentioned by highly influencing portals. This, as well as a solid understanding of the market, are necessary for success.
The most important thing to have, though, is the mindset of a learner. You have to come up with a plan, and follow through it regardless of the results. Say, invest a certain amount (that will not hinder your day to day life) for a certain amount of time to see the percentage of revenue you earn during said time.
This will turn into data, which you can learn to use and decide whether to invest more, or less, based on your experience. If you are interested in learning more detailed, and solid information about how to start to invest successfully, you can check https://www.themastermindwithin.com/stock-market-investing-mindset/.
Overall, you should take the opportunity as a learning experience and try to absorb as much information as possible. Thankfully, there are communities you can join to get useful information about the market, and advice regarding trading sites, and upcoming cryptocurrencies to consider.