Social media nowadays is filled with the words – bitcoin, cryptocurrency, crypto trading, etc. The hype for cryptocurrency has never been this high. Many have made fortunes because of this investment option. Seeing all this crypto news, it is normal human behavior to want to know about it more and even take action as to investing in a cryptocurrency. But there are a lot of walls in between you and the path to investing in crypto. These walls are your questions regarding the whole crypto subject. Having these questions answered will help you know more about cryptocurrencies and even maybe just the assurance you need to buy your first. If you really have some questions that are holding you back, we are here to answer some of them:
Is cryptocurrency safe? Being a fully virtual currency, what if someone hacks the system and I lose my money?
This is one of the most asked questions and a valid one. If you are going to invest your hard-earned money somewhere, it better be safe. To answer this we must first understand how the cryptocurrency system works. Cryptocurrencies are based on blockchain technology. It is a database that stores information in the form of blocks. Blocks of data are recorded in chronological order to form a chain, hence it is called a blockchain. These blocks of data can’t be changed once recorded, making any transaction records permanent and viewable to anyone, making it transparent. Suppose you buy an ethereum coin, it is recorded on the blockchain permanently and this information of your purchase cannot be manipulated. The system is also decentralized. All these factors come together to form a database that changed and cannot be hacked. Thus, making it totally safe for you to invest.
What are Altcoins?
Altcoins basically means Alternative coin to bitcoin. After the success of bitcoin, many similar coins came into the market. These coins were called altcoins. One of the recent altcoins that made news is the Doge coin. It was started to mock bitcoin. Eventually, its price grew and after Elon Musk’s tweet, it went even higher. That is how the term – doge to the moon, was started. Started as a joke, this cryptocurrency may soon be worth a dollar.
How can I start investing in cryptocurrency?
If you think there are many complex procedures involved and that you need to know finance to invest, you are wrong. It is as simple as registering yourself on the crypto investment app you are using, confirming your IDs, and linking your bank account. After you get the confirmation of your ID being confirmed, you can start investing. Nothing complex right? You only need a smartphone and internet to start investing. Some apps may seem complex due to their interface, but don’t get intimidated by so many numbers. To make things simpler, we recommend the CoinSwitch app to start your investing journey.
Many businesses have started to accept cryptocurrencies as payment options making it the best time to start investing.