Should You Invest In Cryptocurrency?

Cryptocurrency. You must have been living under a rock if you haven’t heard it mentioned a lot lately, and yet, you certainly wouldn’t be on your own if you didn’t really understand what it was all about, and if you believed that it wasn’t something for you. There are so many rumours and unanswered questions about cryptocurrency, and many feel that this is still something firmly in the future, rather than something that they should be looking at today.

But what actually is cryptocurrency, and should you be looking at investing in this area?

What is Cryptocurrency?

A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It is an alternative form of payment created using encryption algorithms and can be used to buy, sell and trade. The ‘crypto’ part of the name comes from the fact that all of its transactions are highly encrypted, making the exchanges highly secure and safer online. The most famous type of crypto is the Bitcoin, which you have probably heard of, but there are many different forms of Cryptocurrency, with new forms literally popping up every day.

You can use your crypto in the same way that you use regular cash and can also secure a loan against it if you need. A company like BlockLender offer the best crypto loans where you can borrow any amount up to 50% of the value of your crypto, without having to sell any of it. The crypto backs your loan, you continue to own your crypto and full control over it is returned to you once you no longer need your loan.

What to invest in now?

There are so many cryptocurrencies out there to invest in, it may feel like a bit of a minefield deciding what to invest in, but USNews.com identified six cryptocurrencies that are current ones to watch. They are the aforementioned Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), Binance Coin (BNB) , Polygon (MATIC)  and Cosmos (ATOM).

Advantages of investing in Cryptocurrency

Like investing in any sort of stocks, shares, or currency, Cryptocurrencies are not without their risks, as this month showed with the crypto exchanges FTX and FTX.US filing for Chapter 11 bankruptcy. But according to Time.com, Bitcoin experts in particular expect bitcoin to bounce back by the start of 2023, with Ripple (XRP) being another popular Crypto set to bounce back in the new year.

Cryptocurrency like Bitcoin is not released in mass amounts, in 2020 there were only 21 million bitcoins in the world, this could help it to be safe against the current, ever rising inflation that is causing major world currencies, the pound and dollar included, to lose value.

The safety and security details of Cryptocurrency cannot be underestimated. Many users feel that their transactions are more secure than those done with regular credit/debit cards due to that incredible encryption of using almost impossible to solve mathematical puzzles. This feature is becoming ever more useful in light of our increased use of ‘online’ for almost every transaction in our lives.

Cryptocurrency is definitely something to consider as we move towards 2023.

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