You’ve undoubtedly heard about Bitcoin, Ethereum, and other cryptocurrencies, and you’ve probably wondered if investing in them is something you should consider.
Millions of people have had the same thought, but face a daunting roadblock – they don’t fully understand crypto, and have no clue how to buy it, sell it, or otherwise get involved.
Prepare to have the roadblock removed! Here are the three key things you should understand to become more comfortable with crypto.
1 eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Crypto is Currency With a Different Set of Rules
Cryptos like bitcoin are currencies — just like the dollar or euro or yen are currencies. However, there are two important differences:
Traditional currency (like a dollar) is rooted in governments, bitcoin has no singular owner.
All bitcoin transactions are recorded using blockchain technology. A blockchain is a decentralized database of every transaction. Once a transaction takes place, it cannot be edited, changed, or removed — the record is digitally stacked and “chained” together (hence the name).
Blockchain technology acts somewhat akin to a ledger – it keeps a record of every transaction of every fraction of Bitcoin or other cryptocurrencies. Most cryptocurrencies, including Bitcoin, Ethereum, and many others use Blockchain technology.
The second big difference is Bitcoin is finite – there is a limited supply, which is a big component of its value. No more can be produced. As its use and acceptance increases, the value rises.
At this point, you might be asking, “is there enough to go around?” Yes, indeed, and that’s due to the second important difference:
1 eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Crypto is 100% Digital
Now, millions of people are completely cash-free. They get paid via direct deposit, and use a debit card for everything. Many people have not used any cash in years.
But, bitcoin can be divided by eight decimal points (for comparison, a dollar can be divided by two: one cent = .01
This means you can invest as little as $50 and get a fraction of a bitcoin, instead of having to buy one bitcoin that may cost as much as $50,000.
And that brings us to the third key you need to know:
1 eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
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Crypto Is Simple to Invest In
Up until a short time ago, investing in cryptocurrencies was quite arcane, but crypto has come a long way.
Major retailers and other companies are beginning to accept crypto as payment, and investment companies have built secure trading platforms to allow everyday investors to get involved with Bitcoin and other cryptocurrencies.
For example, eToro allows investors to easily open an account with as little as $50 (you can even fund it with your debit card). Once your account is open, you can buy, sell, and hold bitcoin and more than a twenty other cryptocurrencies.
If you’ve been thinking about Bitcoin and crypto, right now is a great time to get involved. We hope this article has helped peel back the curtain a bit.
1 eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.