Why You should make a Crypto Investment

If you’ve hooked on the news over the financial markets today, you probably already heard of cryto money. But have you already thought of making a crypto investment?

What is Crypto Money?

Crypto money, or cryptocurrencies, are digital assets that work as a medium of exchange.

This technology uses cryptography for security and transaction verification. If that word sounds like complicated math to you, it’s because it is. Even hackers hate math, so this works for security.

The First Cryptocurrency

The first crypto money was bitcoin. Under the alias Satoshi Nakamoto, a person or group of people created bitcoin in early 2009.

According to them, the first cryptocurrency was a peer-to-peer electronic cash system. There’s no central authority, meaning there’s no need for servers. There’s no big brother—it’s completely independent.

Since bitcoin’s inception, the crypto money has risen to interstellar levels. Investors flocked it and even called it the “future of finance” because of its promise.

Others looked down on it as a memento of a financial fantasy. But right off the bat, man, markets proved them wrong.  Bitcoin went boom, and those who ditched it suffered from insomnia because of regret.

Crypto Investment for Your Personal Finance

Needless to say, making a crypto investment is one of the good things you can do to improve your personal finance.

You can invest in crypto money by finding a place to buy it. You also need another place to store it. This is what cryptocurrency exchanges are for, like Coinbase.

These exchanges let you buy crypto money like bitcoin. But if you worry that your budget can’t afford the price of bitcoin, don’t worry. Coinbase and other crypto exchanges let investors buy in fractions of one bitcoin.

Which Crypto Money to Choose?

Of course, when you go to these exchanges, you’ll see a lot of choices. Alt coins are digital coins other than bitcoin that have different functions.

For example, take a look at Ethereum. Ethereum is quite unlike bitcoin. This network lets other businesses use the platform to run operations. It also closely relates to smart contracts.

Litecoin, XRP, and Bitcoin Cash are just some of the biggest cryptocurrencies you can choose for your crypto investment.

Other than those, you can try to invest in cryptocurrency pairs too.

Cryptocurrency Pairs

In the world of crypto investment, trading pairs refer to the trade between one crypto money and another.

For instance, can trade 1 bitcoin for ethers (token of the Ethereum network). That would be BTCETH. It’s like the forex market, where there are two currencies in a pair at a time.

But how do you choose which pair is the best? You have to evaluate all factors that affect each of the crypto money.

Consider Liquidity

And since we’re talking about a fairly new kind of asset, liquidity is of big concern. In any kind of investment for personal finance, liquidity matters.

While it may sound exciting to trade using newer crypto money, liquidity usually ends up a problem. Bitcoin, so far, has the highest liquidity among the more popular cryptocurrencies.

Overall, making a crypto investment is something you shouldn’t do without learning about the development of digital currencies.

After all, the tech is still in its infancy. A lot could happen from now. But one thing is for sure: bitcoin and cryptocurrencies are shaking up the foundations of the financial system. What if a crypto money investment is your key to success?