You’re excited to explore the world of cryptocurrency. Your coworker can’t stop raving about Bitcoin. Perhaps you’d like to know what the excitement is about. No matter how you got here, this digital frontier is both fascinating and confusing. Like trying to explain “Inception.” Discover more to understand the full scope!
Okay, let’s cut this up into digestible pieces. Digital currency is entirely online-based and is not like the smashed dollar you keep in your wallet. Imagine money that you are unable to hold and may be like the smell of a color. It’s a real thing. It’s more legitimate than what my friend calls “homemade sushi”–which is essentially rice and cucumbers smushed awkwardly.
Okay, so why are we talking about digital cash right now? It’s booming–figuratively like a firecracker, sometimes literally like an overcooked turkey. The currencies that are being traded–Bitcoin Ether Dogecoin, Ether (yes that’s real)–promise returns that make conventional stocks look like the tortoise in that age-old race.
But, with such a potential comes the risk of uncertainty. A high return? Absolutely. Risky? You betcha. Investing in cryptos is like riding a rollercoaster operated by an 8-year-old–exciting, unpredictable, sometimes heart-stopping. The objective is to hang the line and perhaps catch at a glimpse.
Should we be able to trust it? The million-dollar question. Blockchain technology, which drives it, has enormous potential. Imagine a ledger that is digital, similar to the ancient scrolls. But with more programs and less papyrus. Every transaction is an irrevocable entry, hard to manipulate, at least theoretically. It’s all open, just such as airing your dirty clothes in a town-hall meeting.
Even technologists find this subject confusing. You’ll be kept guessing with this fast-paced, new topic. The risk of making mistakes is part of the package, so take care when you play. If you make a mistake, you could end up hanging out with your pet goldfish, despite their financial contribution.
A lot of people are asking themselves, “Which coins should I buy?” Berating their screens to reveal the magic answer without luck. There is no magic crystal ball. Bitcoin is the most prominent player however, there are many smaller players that provide exciting possibilities. Are you familiar with “altcoins?” They’re more than just hip replacements for the bull-market celebration. They are all digital currencies that aren’t Bitcoin.
When you are playing this game of roulette, consider setting checks and balances. You wouldn’t jump off a board and not have water, right? Likewise, don’t toss your entire savings into the digital depths. Only invest what you’re willing to let go of such as that mysterious stain on your favorite pair of socks.
Keep in mind that it’s not all dark clouds and chaos. Certain people have hit the jackpot. The “Bitcoin Pizza Guy” has spent 10,000 BTC in the past on two pizzas. They are now worth more than the entire yacht. The moral of the story is: patience might just net you some luxury cheese.
Be diligent in your network; good advice is just as valuable as the cryptocurrency itself. Forums or social media, opinions pieces–they’re the new advisors. Be wary and cautious. Internet chats are valuable sources of knowledge and also the traps of foolishness.
It is important to remember that enthusiasm is infectious but discerning is the king. The story of digital currency continues to unfold. What will happen next? It might ebb and flow like a bottle that has been forgotten of Coke, or grow like a carnival. There’s plenty of room to both anticipation and caution in this exciting adventure known as crypto investment.
Dive in, but always have a life raft on hand in case you’re required to paddle back to shore.