Cryptocurrency: A New Kind of Money
Cryptocurrencies are still representing money as a medium of exchange, but not in a material form. To understand how the digital money works, let's have a look a the traditional money system.Normally people take their money to a bank, which will hold their funds. Every bank has a ledger, where they update and keep the current balances and transactions up-to-date. One of the main disadvantages of this system, is that the person needs to have confidence in someone holding your money.
Yep, that's the basic explaination.
Advantages of the new ledger system (blockchain)
- Mobile payments
- Self-control over your money
- Works everywhere, anytime
- Fast international transactions
- Nearly no fees
- No personal information needed
Cryptocurrencies are a whole new way to use money, thus it will be soon integrated in our every-day life. There is a giant upside to investing in cryptocurrency. That is, the cryptocurrency market is still young and the many optimistic of investors are projecting future prices that would make buying any of the major cryptocurrencies (even at the height of 2017) a good bet. There are different strategies of investing in cryptocurrencies:
INVESTING IN CRYPTOCURRENCIES
Cryptocurrencies still in its early beginnings, they are profitable in all kind of investment strategies, of either active or passive investing. I personally recommend them for LONG-TERM INVESTMENT in form of purchasing bitcoins, etc. and storing them on a cold wallet.For MEDIUM-TERM Investors, i would recommend investment firms, offering a passive income, with medium risk portfolios. Learn more about ways for passive income
Any guys trying SHORT-TERM investment should make themselves first common about day-trading strategies.