Many people consider investing their money. They want their hard-earned dollars to go to work for them. The often “high flying” world of cryptocurrency has become more attractive to more people. This article will take a look at aspects of cryptocurrency, its related technology, and what might be behind your motivation to make money with cryptocurrency investing.
Is Your Cryptocurrency Investment Plan Purpose Driven?
Figuring out the cryptocurrency investing landscape is not an easy task. You are dealing with new technology, emerging technology, and all the confusing terminology that accompanies it. The news is and has been filled with soaring prices and devastating crashes. Companies connected to the crypto world have made headlines and then vanished.
All Those Cryptocurrency Coins
The cryptocurrency coins themselves seem to be everywhere. On an almost daily basis news sources are buzzing about coins. Everyone is talking about Bitcoin and Bitcoin cash. Launched in 2011, Litecoin “faster than Bitcoin” was launched and remains popular. You’ve heard about the second most valuable cryptocurrency Ethereum and its versatile blockchain. Ripple was launched in 2015 targeting international payment transfers. Ripple wanted to speed up international transactions while making it cheaper to make those transactions.
Consider the odd case of EOS. Before its platform was launched, EOS burst into the top ten cryptocurrencies. The EOS token entered the scene with a successful ICO (Initial Coin Offering) in 2017 and has raised a record $4 billion. The platform has launched but is not live yet. Despite this, it has a high trading volume.
Other coins stay in the new and are popular. Zcash is said to be “like Bitcoin” only more secure. Dash is secretive. Dash boasts user anonymity and trading that is practically untraceable. Monero might be more secretive than Dash and completely untraceable. Cardano is supposed to be an improved version of Ethereum. Stellar is out of the Ripple camp and is aligned with their non-profit Stellar Development Foundation.
Taking a different path is IOTA. It is not a blockchain based coin. It utilizes a protocol invention called Tangle and is betting on the success of IoT (Internet-of-Things) technology. Finally, among the digital currencies that are most watched there is NEO. NEO has been referred to as “Chinese Ethereum”. Only NEO is much, much faster. Ethereum can only complete 15 transactions per second while NEO can complete 10,000 per second.
All the Cryptocurrency Technology
What makes all this digital currency different is decentralization. There is no overriding or central regulatory agency or authority. This simply means that there is no bureaucracy involved to interfere. There is no bank or government providing oversight. All the information about this virtual currency and the people who trade it is encrypted. Thus the “crypto” in cryptocurrency, taken from cryptography. All the information that is shared is protected thanks to algorithms and computer codes.
That is one part of the equation. The other main tech is blockchain. Blockchain is a method of accumulating and storing data in “blocks”. Transactions are tracked and verified using the blockchain. It acts like a ledger.
Are you confused by all of this? No need to worry, a simple online search can provide you with more information than you probably will ever need when it comes to cryptocurrency technology and cryptocurrency investing.
How does all this fit in with the purpose of cryptocurrency investments for me?
Circle back around to motivation. This is something that you cannot answer with a Google search. Sure, a search may reveal “good reasons” to invest in cryptocurrency and why you should. However, only you can answer why you want to enter this space.
Do you want to make a lot of money? Join the club. Most people do. Take a little deeper look. Ask, “Why do I want to make a lot of money?” Ask, “What purpose will be served by making this money?” Are you wanting to fund a specific project? Is it needed for retirement because you didn’t plan well or suffered a huge loss elsewhere? Do you want a luxurious lifestyle?
Defining the purpose of your cryptocurrency investing, defining what goal or goals you want to achieve comes first. After that, then you can make an informed decision on moving forward with your investing strategy in virtual money.
This process can lead you to think more deeply about who you are as a person. It may be a step toward self-fulfillment and realizing who and what you ultimately want to become. Drifting through life may be replaced by taking control of your life. You just might get a better understanding of yourself in this process. Now, who would have imagined that cryptocurrency could lead to that?