Note from Rob: This guest post discusses Bitcoin, which is a risky yet possibly profitable “investment”. Although I believe cryptocurrency and blockchain are revolutionary and will play a huge role in the future, I recommend that you do your research before getting too involved financially. If you do decide to put skin in the game, Coinbase and Robinhood (soon) are both great ways to easily start buying crypto. And now, onto the article…
Bitcoin has become a household name at this point. It’s probably not uncommon to sit at the dinner table and have someone bring up Bitcoins. It’s safe to say, unless you live under a rock, you know what it is. However, if you don’t here is a quick breakdown of it. Bitcoin is an electronic peer to peer payment transfer that is completely decentralized. It is a digital currency which you can use to pay anyone you want, anywhere in the world. All you need is the other person’s specific hash address and the amount you want to send over.
Bitcoin lives on a new technology called the blockchain which is a transparent yet decentralized public ledger that anyone has access too. Bitcoin is pseudonymous which simply means you don’t know which address belongs to who but you can see what goes on through that address. With everything that is pretty new, it has its benefits and also some things to be wary about. With all this said, remember cryptocurrency day trading is very risky and we are not financial advisors.
Lower Transfer Fees
With cryptocurrencies in general, you are looking at much lower transfer fees than you would get when a customer uses a credit card or wire transfer. Being a vendor, you do not have to worry about any fees because the buyer is the one paying the fees. Fees are usually a few cents to a couple dollars, depending on how much you want to send or receive. Venezuela is going through turmoil right now with their leader, President Maduro causing hyperinflation within the country. Bitcoin is the perfect technology to use within the country because the price has been much more steady than the Venezuelan Bolivar. You will not see your moneys value drop overnight which is why a lot of people are using it instead of their national currency.
Many people move across borders to find a better job to provide for their family back home. This is counterintuitive when it takes so long to transfer between banks or even mail checks back. Cryptocurrencies have changed that for the good. Sending digital currency can be anywhere from instant to take 30 minutes.
What to Be Aware of
One of the biggest thing cryptocurrencies are known for are volatility. You may be celebrating your 200% gain today but kicking yourself in the behind when you didn’t sell at the peak and the price came back down. Before investing in a coin, make sure you have a buy and sell price in mind. This means you won’t get too greedy and hold onto it longer to only lose money. Sell when you are comfortable and don’t look back. There are over 1300 altcoins to pick from.
Don’t Invest More Than You Can Lose
This is true for all investments. You never want to put more money into an investment, regardless of how confident you are in it. Many people have lost more money than they had by doing this. Even dealing with options, futures or anything else, always remember to only put in enough money that you are comfortable losing.
Investing money can be a bit of fun and challenging if you know what you’re doing. However, with money being involved, you can change your mind at any time. This is why it is important to have a game plan before you jump head first. Cryptocurrencies are still new and considered a gamble to many people. They’re not wrong either because it is so new, no one knows what is going to happen. The dot com bubble made many people millionaires but even more people lost money in it.
This article was written by Alex M. Alex has been very deep in the cryptocurrency space for the last 3 years soaking in everything there is to know. With such a new industry popping up, Alex is constantly sharing about the latest news and updates in cryptocurrencies on CoinPupil. To learn more about him and his work, read here.