What is cryptocurrency?
27.04.2019
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Cryptocurrency is a word you only hear more and more often, but there are still…
Learn more about cryptocurrency before you start investing
Investing in cryptocurrencies has become very popular, and despite the large fall in prices we saw in the spring of this year, the price is creeping up further and further, and many would probably wish they had only invested earlier this year. For many people do not understand that the kind of events that we saw with the exchange rate of cryptocurrency earlier this year, where the price fell in a short time, is actually a completely natural part of how cryptocurrency behaves, and therefore scares many potential investors. Therefore, here you get some small insights into cryptocurrency, so that you can feel more confident before investing.
Cryptocurrency is very exciting. Basically, the idea behind cryptocurrency is based on a desire for a decentralized currency, where our transactions are anonymous and not controlled by the state bank, as fiat currency does. Fiat currency is the common currency we use, for example Norwegian kroner, and cryptocurrency has been developed as an alternative to this, where there has been increased anonymity in society and more data security, because all actions are encrypted.
Decentralized currency as a goal in society
There are many who invest in cryptocurrency because they believe that this will be an equal alternative to ordinary currency , and when this happens, the price will rise enormously. But while it may be tempting to just jump on the bandwagon and invest in crypto because everyone else is doing it, and it’s very trendy right now, it’s good to get even more into what it is and what it entails. than what we do here.
If cryptocurrency is something you are curious about, Stock School is a good place to start. They have many different articles that are related to both cryptocurrency, and not least investing at all, so there is a lot of knowledge to be found – regardless of whether you are a complete beginner when it comes to investing, or not.
Do not follow trends blindly
As you see that investing in cryptocurrency is becoming more and more common, you also see more and more cases where many people only invest because it is trendy, and this is not something that is recommended. Because even though you may want to be part of the growth that, for example, Bitcoin is experiencing right now, it is important that you actually look at whether this is something that fits into the portfolio you want, and not least understand what it is. actually involves.
It is not certain that investing in crypto is something that suits you as an investor, and deciding on your own, personal profile, and not just what is trendy, is a good way to get a more sustainable portfolio. For many, cryptocurrencies become too stressful because they are so volatile, while for others this is fine – so it’s important to choose the right one for you.
