What is crypto? Why you should start investing in cryptocurrency.
The new currency is here –research it now to be prepared down the road when you are ready to invest, if not now.
Instead of fiat money, like U.S. dollars, now it is a virtual currency. The difference is that we remove the middleman from the equation, and what’s left is the receiver and the seller. The blockchain now replaces the middleman: no more institutions or centralized banks. With cryptocurrencies, this would be a transparent transaction encoded into a blockchain that would be public and transparent for anyone to see.
What is a blockchain?
Coded – where all the footprints of transactions or events are recorded. These, in return, are things that are part of the network available to the public but yet secure in that they will not identify you specifically unless they have your unique address code.
Most historical moments with Cryptocurrency.
January 03, 2009 – first block (block 0) is mined, and the first cryptocurrency network was founded – Bitcoin.
May 22, 2010 – the first transaction in the material world was a two-slice pizza worth $10,000.00 units of unknown computer code. At that time, crypto didn’t have any real value in comparison to now 2023.
December 11, 2014 – Microsoft accepts bitcoin as a form of payment.
June 8, 2021 – El Salvador passed the bitcoin law, which grants them a form of payment when using fiat money.
The future of our currency will be all virtual. It may not be apparent right now, but this will be our way to exchange goods and services.
Learn and understand its structure now before it increases in value.
Currently, as I write this piece – it has been banned in the nine following countries: Algeria, Bangladesh, China, Egypt, Iraq, Marocco, Nepal, Qatar, and Tunisia.
There’s a reason why they have banned the use of cryptocurrency. What do these countries have in common?
While on the other hand, in the U.S., there is a lot of back and forth on whether the federal government should regulate cryptocurrency…what are your thoughts?
They already regulate your money, and every time inflation increases, your fiat money loses value. It is not like they fill your bank to cover the inflation increase in your savings or other accounts. By not having the government regulate your crypto, when such things as inflation happen, your coins will not lose value; on the other hand, they will also increase in value.
Balance the Waters at Every Moment.
Some people don’t trust cryptocurrency because there are no statutes in place, especially since this is relatively new compared to fiat money. Once the statutes make their place, there will be a different view or perception of cryptocurrency, but by then, the value of crypto may have risen.
By then, laws will be changed and only hurtful, like the stock market when it was new, and laws started coming, things became harder to invest in. And the more controlled it is, well, there you go. The less it is for others to be able to make a living out of it like before. It is still newish enough to do your research and learn from it.
Risks. It’s how you respond. And that is through your ongoing and due diligence research.
There are still risks, especially with the novelty of cryptocurrencies, from regulations to crypto exchanges to cybersecurity.
A small portion, like 5-10% of your portfolio, would be reasonable. I think going more than 15% would be hitting the cliffs.
Do not focus so much on the negative sides of crypto; not saying that you should ignore it but consider it and do not allow it to be your center of attention. Balance your sides, just like the yin and yang.
Keep yourself informed as if you were making huge investments but are not. If you are being skeptical, and when you start seeing a trend, you start making your own bets and not taking tips from someone else.
Since this is a new rising currency – keep your eyes on the ball, so when it becomes stable, you are making the right moves instead of having to dumb money because more people are talking about it, and you do not want to run into the issue of misleading yourself.
Take back your power.
A way to take back your power instead of giving it all to the government or big corporations. Think about it, when the government overspends and increases its debt, your money under the bed or a bank that is only giving you 0.001% of your sitting cash in the bank (non-online bank) – your dollar is decreasing in value. On the other hand, when it comes to having crypto – assuming that it is stable – well, as there is more crypto in the market, the value of your crypto assets increases if more players buy crypto significantly as it increases in value.
Key Terms –
Blockchain – instead of filing papers in a cabinet file, all data (transactions) are stored on blockchains. And just like it is online, it becomes transparent for others to see them. However, it secures identities through unique addresses like a social security card.
Defi (decentralized finance) – the more extensive umbrella term for removing any middleman from a transaction from a traditional transaction, such as banks, salespersons, etc. And brings it down to only two parties proceeding with a transaction.
Crypto Wallet – it is not a wallet where your crypto is held, but it is where the keys are held to access your cryptocurrency. If you lose your private keys, it is like losing all your crypto stored in those private keys you have lost since only you own ownership and no one else.
Crypto exchanges / decentralized exchange (DEX)– just like stock/bond/etc. are online platforms where crypto exchanges are made instead of fiat money.
Many Blessings,
Sinay Scarr
02/10/2023
Disclaimer: The information provided on this blog is for educational and informational purposes only and should not be construed as financial advice. The content of this blog is based on the author’s research and personal experience and is provided “as is” without any representations or warranties, express or implied.
Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author is not a licensed financial advisor and does not provide personalized financial advice or recommendations. Any reliance on the information provided in this blog is at the reader’s own risk.
The author is not responsible for any losses, damages, or other liabilities that may arise from the use of the information provided on this blog. The author may hold positions in the securities or financial instruments discussed in this blog.
