If you’re still new to crypto, chances are you’re both curious and a little overwhelmed. But should that worry you? Not at all – the journey to understanding crypto starts here.
Below, we explain in a simple, easy-to-understand manner what exactly it is that makes cryptocurrencies so exciting. We also inform you of some of the risks involved that you need to take into consideration before diving in.
Back when cryptocurrencies first hit the market, one of the things that fascinated many were their independence from traditional banks.
If you forget your password to a bank service, they can help you recover or reset it for you. But with cryptocurrencies, you’re at the mercy of the extremely low number of hackers capable of breaking into people’s “stranded” crypto wallets for them – and even their successes are few and far between.
Cryptocurrencies are infamous for their high volatility. One day, a currency can be at its all-time low – and the next, it could very well have skyrocketed to heights previously unheard of.
Like we previously mentioned, hacking your way into a crypto wallet is next to impossible – and the same goes for the rest of the infrastructure supporting cryptocurrency trading.
The blockchain remembers entries forever. Once you make an entry, it’s stored on several computers in an ultra-secure, decentralized system. This way, no hacker can ever access and damage the entire chain, making crypto trading an extremely safe venture in terms of cybersecurity.
Getting into crypto as a complete beginner is no mean feat, and that’s putting it lightly. The vast world of digital currencies is still very new, having only existed since the 2000s – as opposed to, for instance, traditional stock markets, which have been around for hundreds of years.
It’s next to impossible to predict how cryptocurrencies will evolve in the future and whether they’ll even have a place in this world in, say, 50 or even 25 years. Investing in crypto is already risky, so you’ll have to dedicate a lot of time and effort to reading up on it to know what you’re buying into.
But with that being said, you’re definitely in for an interesting ride if you do decide to invest.
The post A beginner’s guide to crypto: Advantages and risks of the digital currencies appeared first on CoinJournal.
