Confused about Crypto? The Basics of Digital Currency

Owning a business means learning to navigate many uncharted waters, such as choosing the best employees for new roles, understanding complex tax structures, and planning smart investments for the future of your company. Cryptocurrency is all the rage right now, but what could Crypto and other digital investments mean for your business?

Let’s dive into the basics of crypto: what it is, where it came from, and how you can invest.

What is cryptocurrency?

Cryptocurrencies are digital assets that are created and run on the blockchain, a decentralized ledger of all transactions, and at their core serve as digital money designed to be used over the internet. With crypto, it’s possible to transfer value online without the need for a middleman or traditional bank. Bitcoin and ether are two popular cryptocurrencies, but there are many others.

Where did cryptocurrency come from? 

Bitcoin, the first cryptocurrency, launched in 2008. In the time since, other cryptocurrencies like Ethereum have grown in popularity. Cryptocurrencies are not regulated by any one government, none to be exact, so they are universally accessible around the globe.

How can you invest in cryptocurrency? 

Buying and investing in cryptocurrency is a similar concept to investing in the stock market. Millions of people hold bitcoin and other cryptocurrencies as part of their investment portfolios. The USD value of cryptocurrencies ebbs and flows much like individual stocks. For example, if you had purchased one Bitcoin back in 2010, it would have run you a hefty eight cents. Today, that same Bitcoin is worth over $68,000. Talk about a smart investment!

Speaking of smart investments, how does cryptocurrency shift your investment portfolio? As for all investments, it’s a best practice to only invest money you can afford to lose, diversify your investments, and be in it for the long term. 

Are you investing in cryptocurrency? Let’s chat all things digital this month, over on our Instagram!