8 Things You Need To Know About Cryptocurrency

8 Things You Need To Know About Cryptocurrency

Did you know that cryptocurrency has been around for a lot longer than you might realize?

Bitcoin is widely considered to be the first form of crypto, and for good reason. It was the first kind of crypto that was viable and utilized by those within the crypto community.

But way back in 1990, almost 20 years before Bitcoin was first founded, there was something called eCash that was a very early form of crypto. B-money, Bit Gold, and Hashcash all came before Bitcoin, too, and helped set the stage for it.

If you’re thinking about investing in crypto, it’s important for you to know as much as you can about it. It’ll make you feel more comfortable about adding crypto assets to your financial portfolio.

Check out eight more things you need to know about crypto below.

1. More Americans Are Investing in Crypto Than Ever Before

It wasn’t all that long ago that many Americans were still wondering, “What in the world is cryptocurrency, and why should I care about it?” As recently as just a decade ago, the vast majority of people still didn’t have a clue as to what crypto was.

But as of 2022, about 16% of Americans have invested in crypto to some degree. Many of them are still learning the ins and outs of investing in crypto, but it’s clear that crypto has a hold on at least some people in this country.

It’s also clear that crypto is only going to become more popular from here. It shouldn’t be too long before 16% seems like a very small number when it comes to how many people are investing in crypto.

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2. There Are Many Different Types of Crypto You Can Invest In

Most of the people who have invested in cryptocurrency at this point have invested in Bitcoin. Bitcoin is, by far, the most popular type of crypto in this country, due in large part to the fact that it has been around for so long.

But it’s worth noting that Bitcoin is not the only type of crypto that you can invest in if you’re interested in getting involved in crypto investing. There are many other types of crypto as well, including:

  • Ethereum
  • Tether
  • Cardano
  • Stellar
  • Dogecoin

There is even a kind of crypto called Illuvium, with ties to a fun blockchain-based game that is showing where crypto could be headed in the future. You can buy and sell it at Byte Federal ATM machines.

3. Not All Crypto Assets Are as Stable as You Might Like

While there are tons of different types of crypto that you can invest in at any point, one thing that should be on your radar is that not all crypto assets are going to be stable. In fact, even Bitcoin has come crashing back down to earth on numerous occasions in recent years.

What does this mean for you? Well, it means that you need to be very strategic as far as which forms of crypto you invest in. It also means that you need to keep a close eye on your crypto assets at all times and look out for any signs that could show that a potential collapse is coming.

Crypto assets can still be pretty volatile in many cases, and you need to be aware of this if you’re going to go through with investing in crypto. Your crypto assets could be worth a fortune today and worth nothing tomorrow. You’ll need to decide how risky you want to be when investing in them.

4. Crypto Should Only Make Up a Small Portion of Your Investment Portfolio

Because crypto is so volatile, you shouldn’t sink your entire life savings into crypto assets. Although some people have done this and made a lot of money in the process, others have lost everything while investing in crypto with too much money at one time.

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Generally speaking, most experts will tell you that crypto should only make up a small percentage of your investment portfolio. Everyone has a different opinion on just how small of a percentage it should be. But under 5% is a good rule of thumb.

This way, you won’t have to panic too much if your crypto assets decline in value overnight. At the same time, you’ll also be able to reap the rewards if your crypto assets soar in value in a short period of time.

5. Buying and Selling Crypto Has Become Very Easy

A big part of the reason why crypto is as popular as it is today is that it’s become very easy to buy and sell it. Just about anyone can make crypto transactions right from their smartphone.

There are lots of different cryptocurrency exchanges that have popped up to help people buy and sell crypto. There are also Bitcoin ATMs that make it possible for people to buy and sell crypto by pushing a few buttons on a machine.

If you’ve been hesitant to try investing in crypto because you think it’s going to be too confusing to do it, think again. You will be pleasantly surprised to see how fast you can get the hang of making crypto investments and selling them off when you want to do it.

6. Using Crypto to Make Purchases in Stores Is Possible

In this day and age, it’s possible to do more than just buy and sell crypto. You can also use crypto to make purchases in stores in some cases.

To be clear, not all stores are accepting crypto payments at this time. There are still some stores that are hesitant to put crypto payment policies into place.

But there are tons of companies that are all the way on board with accepting crypto payments. AT&T, KFC, Subway, Microsoft, and Overstock are just a few of the major corporations that have begun to allow people to pay for things with Bitcoin and other forms of cryptocurrency.

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7. The Crypto Landscape Is Always Changing

One thing you should keep in the back of your mind when it comes to crypto is that it’s still in its infancy. Even though some of the earliest forms of crypto date back to the early 1990s, cryptocurrency hasn’t been around for that long.

Because of this, the crypto landscape is constantly changing. You’re going to need to learn how to change with it if investing in crypto is going to be in your future.

There are always new types of crypto being introduced to the world. Some of them won’t be around in six months, but others have the chance to become the next Bitcoin.

Your goal should be to continue to educate yourself on crypto and what it can do for you. As long as you’re able to stay on top of what’s happening in the wide world of crypto, you should be able to invest in it successfully and use it to your advantage.

8. It Isn’t Too Late to Cash In on the Crypto Craze

Some people are under the impression that they’ve missed the boat when it comes to investing in crypto. They think it’s too late for them to get in on the action and cash in on the crypto craze that has gripped the country.

As we just alluded to, though, this whole crypto thing is just getting started. We could very well look back at what’s going on now in 50 years and laugh about how naive we all were with regard to crypto and just how big it would become.

You shouldn’t ever feel like you’re “too late” for crypto. You might actually be right on time as we could be entering the golden age of crypto soon.

That doesn’t mean you should remove all the money you have in your bank account and convert it into crypto. But it does mean that you shouldn’t be shy about playing around with investing in crypto to see what it could do for you.

Now That You Know More About Cryptocurrency, Go Invest in It

Hopefully, you know a little bit more about cryptocurrency now than you did ten minutes ago. It should give you the confidence to get out there and start investing in crypto.

You’re also free to poke around on our blog more to get additional information on cryptocurrency. We have lots of crypto-related content that can help you understand crypto even more than you already do.

Browse through the rest of our blog articles to continue to get the inside scoop on crypto.

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