If you are new to the world of cryptocurrency, you may be lost when it comes to things like how to buy Bitcoin, how to use cryptocurrency, and what it actually is. It is, after all, a fairly new concept that is only now starting to gain traction in mainstream society.
Luckily for you, understanding cryptocurrency isn’t as difficult as you might think it is. If you are interested in learning more about all things crypto, keep reading.
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What Is it?
It is important to understand what cryptocurrency actually is. The easiest way to put it is to think of cryptocurrency as virtual money, which is essentially what it is. However, this “money” can’t be kept in a bank, is not ruled by a government, and is not accepted as a form of payment everywhere. In fact, in some countries, cryptocurrency is considered illegal.
There are several different forms of cryptocurrency and some are valued more than others. Typically, you can purchase cryptocurrency with regular money and then store it in what is known as a “wallet.” In order to access your wallet, you need an account first.
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Different Types of Cryptocurrency
As mentioned previously, there are several different types of cryptocurrency. As of recently, there are around 16,000 different types of cryptocurrency out there, including Bitcoin. In total, all crypto is worth upwards of $2 trillion, and it only keeps rising as more and more forms of cryptocurrency keep popping up.
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Should You Invest in Cryptocurrency?
Because of the fact that cryptocurrency is worth so much, more and more people are choosing to invest in it. However, is it something that you should do? What you need to know about cryptocurrency is that much like real currency, cryptocurrencies generate no cash flow. The only way to really make money through a cryptocurrency investment is to have your cryptocurrency go up in value, and then sell.
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Is Cryptocurrency Legal?
Although cryptocurrency has become more popular in the last few years, it is still not accepted worldwide. While some countries simply don’t acknowledge it as a form of currency, others have completely banned it from being used.
China and Egypt are just a few of the places who don’t allow any form of cryptocurrency to be used. Many countries have banned crypto because of the fact that it isn’t ruled by any form of government.
In other countries such as the US and Canada cryptocurrency is legal and becoming more and more popular as a form of payment. Many businesses are now accepting cryptocurrency and may even prefer it because there are no taxes and fees to be paid on it.
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What Makes Cryptocurrency So Popular?
When cryptocurrency first came out, people were wary about it. But now more and more people are starting to accept and see cryptocurrency as the currency of the future. Not only that, but since crypto continues to rise in value, people are rushing to get their hands on it.
Aside from the rise in value, cryptocurrency is also popular because it removes central banks from managing the money supply. Banks are known to reduce the value of currency thanks to inflation so without it, their money doesn’t lose value.
Other people like the fact that there are no taxes involved when using cryptocurrency and it makes buying products overseas that much cheaper because you don’t have to pay for these taxes. The businesses themselves also see the same exact benefits as they don’t have to spend extra money on taxes either.
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How Do I Buy Cryptocurrency?
If you are wondering how to buy Bitcoin or any other form of cryptocurrency, you’re in luck. Buying cryptocurrency is simple. To start, you will need a “wallet” as mentioned earlier. This is essentially an online app that holds your currency. You can get a wallet after you create an account on an exchange that is ideally operating in your country, for example if you are in Canada, you can use a Canada crypto exchange which offers more protection than foreign exchanges. From there, you can transfer money into your account so that you can start buying cryptocurrency.
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How Safe Is Cryptocurrency?
Cryptocurrency may be easy to buy and sell, but it can also be nearly impossible to get back if stolen by hackers. It can also be easy to get swindled into buying fake cryptocurrency from people who create fake websites claiming to sell crypto. That’s why it’s important to read the fine print, do research on companies claiming to sell crypto, and avoid giving out personal information to just anyone.
