Cryptocurrency is a kind of digital money. It means there is not any physical coin and bill —it is all online. You may transfer the cryptocurrency to somebody online without the go-between, like the bank. Bitcoin & Ether are known cryptocurrencies; however, the new cryptocurrencies still continue to be made. People have to use bitcoin wallet to store their digital currency. Some may get the cryptocurrencies as investment, and hoping its value goes up. One can buy the cryptocurrency with the credit card and, in certain cases, get this through the process known as “mining.” Cryptocurrency can be stored in the digital wallet, online, on the computer, or other hardware. Before buying cryptocurrency, you need to know it doesn’t have same protections when you’re using the US dollars.
Cryptocurrencies and US Dollars
A fact that the cryptocurrencies are digital isn’t an important difference between the cryptocurrencies and the traditional currencies such as US dollars.
Cryptocurrencies are not backed by the government.
The cryptocurrencies aren’t insured by nay government like the US bank deposits. It means that the cryptocurrency stored on internet doesn’t have these same protections like money in the bank account. Suppose you store the cryptocurrency in the digital wallet offered by the company, and firm goes out of the business and is hacked, government will not step or help to get the money back like it will with the money stored in the banks and credit unions.
Value of cryptocurrency changes constantly
The cryptocurrency’s value will change by an hour. The investment that can be worth plenty of US dollars may be worth just hundreds tomorrow. Suppose its value goes down, then there is not any guarantee that it can go up again.
Start investing in the cryptocurrency
Like with any kind of investment, before you think of investing in the cryptocurrency, know risks or how to spot the scam.
No one will guarantee you will earn money.
Anybody who assures you the guaranteed return and profit is possibly a scammer. Because the investment is known and has got celebrity endorsements doesn’t mean it is safe or good. This holds true for the cryptocurrency, like it does for the traditional investments. Never invest your money that you cannot afford to lose.
Not every cryptocurrencies — and companies promoting cryptocurrency — appear same.
Just look in the claims that the companies promoting the cryptocurrency are making. You can search online for name of a company, cryptocurrency name, and words like “scam,” “review,” and “complaint.”