Gone are the days when you could only use your bank balance to trade in assets and stocks. Now, the world is moving toward the use of digital currency, which is also known as a cryptocurrency.
These currencies have been waging war in the financial market and they have already turned into a force to be reckoned with. If you are still among those who choose to avoid this technology and focus on the traditional forms of money, you might be missing out on an extra asset class, to diversify your portfolio.
WHAT ARE CRYPTOCURRENCIES?
Cryptocurrency is a term that is used to define the decentralized digital asset which allows you to perform transactions and trade on platforms without using your bank balance. This currency has seen the light owing to the blockchain.
Most of us when they think blockchain they think anonymous mastermind who is known by his pseudonym “Satoshi Nakamoto.” After he or she created Bitcoin, the world of cryptocurrencies has never been the same.
This technology has come a long way from the days of its inception with the creation of various other types of currencies.
SHOULD YOU INVEST IN CRYPTOCURRENCY?
If you are a skeptic and wish to play it safe, the best way to make it work with cryptocurrencies is by not investing anything that will affect you if you lose it.
This is because cryptocurrency market is still at a volatile stage where different Tokens have risen 10000% in a year and then continued to free fall. The market is also influenced by things like hoaxes and rumors influence its value more than they would have affected other markets.
Hence, as a beginner, always start slow, make your research and never invest money that you are not willing to lose.