Chris O'Shea
Cryptocurrency has been making headlines for some time now, but it can be a bit intimidating. If you’re curious about cryptocurrency, here’s a handy guide to get you started.
What is Crypto?
Crypto is a digital currency that can be used as an alternative currency to purchase items. You can also invest in crypto.
Why Invest in Crypto?
The simple answer? To make money. But the slightly more complicated answer is that if you believe crypto will be used more and more as an alternative to our currency. The idea is you buy a small amount of crypto now before it is widely used and its value has increased, then eventually sell it for a profit.
Good and Bad
The pros of crypto:
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More access. Crypto is available to everyone who has access to the Internet. Therefore it can be a more equal playing field when it comes to investing.
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Security. The blockchain tech that keeps crypto secure is seen as more effective than traditional banks’ security tech.
The cons of crypto:
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High variance. Crypto prices can change quickly, and the product isn’t as well understood as it should be, so there’s a high degree of risk.
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Lack of traction. That same high variance can lead to crypto never being completely accepted as an investment/currency. For the most part, people are risk-averse when it comes to investing. If that risk keeps crypto from being adopted on a large scale, its value will never truly take off.
