We’ve taken a look at some of the most common questions would-be cryptocurrency investors are asking on the web, and compiled some helpful information that should hopefully help you make your mind up about whether crypto is right for you.
What exactly is cryptocurrency?
In simplest terms, they are a form of digital currency that can be used to make payments online. They work using a decentralised technology know as ‘blockchain‘, which manages and records every transaction that is made. The blockchain is run across many different computers, and the technology it uses means that cryptocurrency can be more secure and potentially more private than traditional currencies.
Are cryptocurrencies legal?
Yes! Cryptocurrencies are legal in the UK, the US and most other countries – although do be aware that some have banned their use. Crypto is a perfectly legitimate form of currency, and not a scam.
Is cryptocurrency a good investment?
Over the past few years, cryptocurrencies such as Bitcoin have seen their value rise significantly. This has made them a popular investment option. If you understand how volatile the market is – the money that you invest could go down as well as up – then cryptocurrencies can be a good investment. In order to make the most of a crypto investment, you should plan to hang on to the currency long term and ride out any potential drops in value.
What is the best cryptocurrency to invest in?
As a new investor, you might want to opt for one of the more established cryptocurrencies, such as Bitcoin, Ethereum, Litecoin or Tether. Different cryptocurrencies have been designed for different purposes, so as you become more comfortable with the market you may choose to start investing in those coins that are most closely aligned with your own values. For example, some coins are focused on ensuring the privacy of those using them, while others are designed with security at the front of mind. There are actually now several thousand different cryptocurrencies out there, however many of them won’t be worth your time. If in doubt, do some research online and look for tips from other traders.
How do you make money with cryptocurrency?
Making money with cryptocurrency is essentially a case of choosing a currency to buy and then hoping that the value increases over time. Using an app such as Bitcoin Equaliser, you can analyse the past performance of different currencies and make trades based on the data. This means buying and selling different coins as the value rises and falls. While there’s never any guarantee that you will make money, the actual process of trading Bitcoin and other cryptocurrencies is surprisingly straightforward.
Can I get rich with cryptocurrency?
Some people have been incredibly lucky with Bitcoin, investing early and making millions in the process. This has led to a reputation as a ‘get rich quick’ scheme – but that’s not how you should think about crypto. While it’s certainly possible that the value of your currencies will rise substantially, there is also risk involved. This means that it’s better to think of crypto as a long-term investment opportunity.