Cryptocurrency or “crypto” are both common buzz words used in media all the time these days. Many believe that this kind of investing is a fad and while others believe that it is the next US dollar. I can’t tell the future but I can tell you what my personal take and experience has been with cryptocurrency to help you form a better personal opinion of the topic.
What is Cryptocurrency
Cryptocurrency is a form of currency that is exchanged solely on the internet, there is no physical money. Cryptocurrency utilizes blockchain technology to form financial transactions. This makes this form of currency completely decentralized.
Decentralized means that there is no central authority controlling the currency. The most common example of a central authority controlling a currency would be a government controlling its country’s currency.
Blockchain technology keeps track of the transactions and stores the data. It also verifies any cryptocurrency transaction to validate its accuracy.
If you’re interested in learning more about cryptocurrency, let me know in the comment section and I can write an entire dedicated article to it.
My Personal Experience
Cypress 2012-2013. Yup, the country Cypress. There was a major financial crisis where banks literally were taking money out of customers accounts to try to buy their way out of the problem. Cypress needed to pay the EU to try to help get them out of the problem they were in. Due to this, people who thought they had money to eat one day, woke up the next morning to empty accounts.
Does this terrify you?
Same. This frightens me ridiculously so. The fact that you can work so hard for your money and put it in a savings account with a bank and still have it not be safe – which is arguable one of the safest places to put it.
Cryptocurrency offers a way around this entirely. Giving you a currency that you can turn into cash or even make transactions with that doesn’t have to be stored in a bank account. Because of these reasons, I invest in it.
I don’t relentlessly invest in it, nor is it a major portion of my portfolio but it is definitely a chunk.
As stated above, I do invest in it. However, like all other investments, I do my due diligence and only invest in companies I truly support – I do not try to buy low and sell high making a pretty penny on cryptos. I am in it. for the long haul.
Is It For You?
Well, this is tricky. I don’t think you have to be 100% yes or no in this field. As long as you are furthering your education on the subject and acknowledging that fact that the odds of it going away are very slim.
Before looking much further, you should know that cryptocurrency investing should be approached the same way you should be approaching normal stock market investing.
If you are looking to diversify your portfolio even more and want to invest, I would consider expanding your markets. Just like any other investment, you wouldn’t use money that you need to survive and you would be destitute if you lost.
Make sure that if you do decide investing in cryptos is right for you, that you are investing in companies you believe in and support. Also, that you are not over-leveraged.
After reading this article and doing further research yourself, I hope you are able to formulate an opinion on the subject of cryptocurrency and how you think it would or wouldn’t fit in your portfolio. Do you already own crypto? Let us know in the comments!
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