Many facets of our lives are now digitized – money is no exception.
Have you noticed that paper money is getting out of date because so many people receive automatic deposits and love the simplicity of their debit cards?
Not to mention, cash carries germs, as we’ve heard a lot during the pandemic. In light of this, many companies have switched to just the card.
But what about cryptocurrency?
You probably heard everyone raving about it a few years ago, but the excitement has calmed down a bit. That doesn’t mean it isn’t a viable option that you should keep in mind.
What is Cryptocurrency?
Let’s start with the basic definition of cryptocurrency so we are all on the same page. Cryptocurrency uses cryptographic methods and complex encryption systems to encrypt sensitive information during data transfers. This protects your money and personal information on a whole different level.
These transactions are virtually impenetrable due to the combination of mathematical and technological protocols that have been created and implemented. This aspect of cryptocurrency makes it more secure. The details of transactions are also kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.
Different from traditional bank transactions
One thing people hate about traditional banks is the fact that they can block you from your account at any time. They can hold your money and send you on a mission that jumps through multiple hoops to get the money that ultimately belongs to you.
Cryptocurrency is different in that it is decentralized.
The government is in no way involved in your banking or transactions. Still, some think this poses a greater risk to our government and economy. The government cannot touch your cryptocurrency, even if they want to.
No transaction costs
When we have transactions with our central bank, there are often numerous costs involved. This is another difference between this type of currency and a regular account. You’re essentially cutting out the middle man, so you’re saving on that extra expense.
You can make payments virtually anywhere without a bank looking into your business and asking questions. You can also make international payments without high costs, because an international transaction is nothing more than domestic transactions in the eyes of cryptocurrency.
There are so many ways identities are compromised today. Who wouldn’t love to check out an option that offered more protection? Your transactions and identity are strictly monitored compared to your regular transactions. However, you are still susceptible to hackers and cyber criminals.
Something to note about cryptocurrency is that the transactions are irreversible. Once the translation has started, the funds remain in limbo as they enter the blockchain by the miners.
Involvement in the black market
Bitcoin and other forms of cryptocurrency are primary payment sources for dark web transactions. This type of currency is difficult to track, but that also means that it is easier for criminals and hackers to use transactions on the dark web.
Even though the government cannot see your transaction, they want to tax the transactions. There is something of a loophole, but you need to stay on top of tax-related issues and avoid being monitored on your cryptocurrency holdings and transactions.
If the data goes away, so will your funds
When you think about it, a big computer stores your money and you can’t liquidate them. If the data is compromised and disappears, so will your money, and there is no one to be held responsible.
You must be tech-savvy to invest in cryptocurrency
Let’s be real; if you don’t have a working knowledge of cybersecurity and cyber events, cryptocurrency will be a dead end for you. These types of investments require that you have some working knowledge of the cyber world or you might be throwing money away!
Thoughts about goodbyes
All investments have potential pros and cons, so cryptocurrency is no different in that regard. If you are considering investing some money in Bitcoin or any other type of cryptocurrency, make sure you are familiar with the pros and cons.
You need to make sure you are fully aware of everything involved in the process and if you are not clear about anything it is helpful to have someone to ask you for help.
It doesn’t have to be a stressful research experience. Why are you making the most of the experience and pairing it with your favorite CBD product? Maybe you haven’t tried one yet, but some CBD tinctures are quite sweet!
Please sit back and relax, Dive into some knowledge and information about cryptocurrency, and see where it takes you. It might be the best thing that ever happened to you!