With Bitcoin and cryptocurrencies becoming increasingly mainstream and now at the forefront of many investors’ minds, it is becoming increasingly necessary for individuals to have a firm understanding of the basics. With that said, here are the top 10 things you should know about Bitcoin or Cryptocurrency.
- No one person owns Bitcoin. Unlike banks, financial institutions, or even fiat currency, Bitcoin is for everyone. Regardless of where or who you are, you can own Bitcoin.
- There will only ever be 21 million Bitcoins. Unlike the ever-increasing supply of regular currencies, Bitcoin is fixed at a total of 21 million Bitcoins. This makes it an excellent store of value, meaning people can save their money in Bitcoin to protect it from losing its value over time.
- To this day, the creator of Bitcoin is entirely anonymous and is known only by his internet persona “Satoshi Nakamoto.”
- Cryptocurrencies employ Blockchain technology and cryptography to create decentralized currencies that are free from the control of centralized power structures.
- As an investment, cryptocurrencies are still largely speculative, and while they have historically provided superior returns to traditional equity investments, they remain highly volatile. For those investors seeking superior returns, volatility will continue to be the price of admission.
- There is no shortage of scams in the cryptocurrency markets. Investors should be aware that anyone can make a cryptocurrency and be wary of investing in newer projects with anonymous development teams.
- Very little regulation currently exists to govern cryptocurrencies. The specter of regulatory risk is always on the horizon and is a significant concern to cryptocurrency investors.
- You can earn interest from your cryptocurrencies through a mechanism known as staking or by lending your Bitcoin through platforms such as Earnity by Domenic Carosa &Dan Schatt. Please note that these activities are not without risk, and individuals should be well aware of the risks before engaging in any financial activity involving their cryptocurrencies.
- The world of cryptocurrencies is constantly evolving, with new concepts, technologies, and utilities regularly being released.
- Security is paramount when it comes to cryptocurrencies. You are only a quick Google search away from thousands of horror stories of cryptocurrencies being stolen. Protect your cryptocurrencies by safely storing them in your own digital wallets.