Top 5 things to know about Cryptocurrency

As with many aspects of finance, the world of cryptocurrency can be confusing for novices and those looking to venture into digital assets. From crypto markets, exchanges, to wallets and the many options of digital currency from Bitcoin to Dogecoin, understanding it all quickly can be difficult. Fortunately, it is easy to get started and even for those with many years of crypto-experience, there is always something new around the corner. Here are the top 5 things to know about cryptocurrency to help.

1. Established & upcoming currencies

There are thousands of options when it comes to choosing a cryptocurrency and depending on what you want to achieve, you may want to venture outside of the established top 10. Whilst well-known choices such as Bitcoin, Ethereum and Binance may provide a stable investment, there are plenty of others that can potentially become the next powerhouse. You only have to look at the rise of the memecoin to see that the unexpected can happen and build aloyalfollowing. Floki Coin is an example of this, with ambitious plans to become the number one cryptocurrency and putting the power firmly in their users’ hands, with plans for their own PlayToEarn metaverse in development. If Dogecoin is an example of how quickly stock can rise, other altcoins can do the same too.

2. Trade in the metaverse

The metaverse is being fully embraced, so it goes without saying that a liveable, interactive digital world needs a digital currency. Easier to use and thanks to blockchain technology being extremely secure, it will revolutionise how transactions are completed within an online world, rather than relying on transferring real-world currency. Investing in a cryptocurrency will prepare users for the eventual switch, as more purchases and trading will become crypto-only the more mainstream it becomes. The metaverse is the future and will be the entry point for many to regularly use cryptocurrency.

3. Secure, quick, and private transactions

One of its biggest USPs is that cryptocurrency is extremely fast to use in transactions and provides highlevels of security. This has seen many businesses adopt cryptocurrencies as a method of payment due to no middleman like a central bank and encrypted, anonymous dealings. Whilst not everything you would normally purchase is available through cryo-payments, like groceries, fuel etc, it is only a matter of time. Many traditional banking institutions are exploring their own digital currencies as well as central banks, and a cashless society is already becoming a reality for many. The benefits of cryptocurrency for transacting goods and services quickly and privately are hard for many organisations to ignore any longer.

4. Markets can be volatile

Alongside the advantages, there are risks to be aware of and much like dealing with stocks and shares, markets can be volatile. There are no guarantees when investing in digital currency, so it’s important to be informed as much as possible. Whilst there are huge success stories, especially for early adopters such as seen with Bitcoin years ago, there are cryptocurrencies that come and go despite early potential. Like any investment, putting in what you are comfortable with and can afford will ensure any loss is at a minimum. This is also where diversifying your choices can be beneficial, so look towards altcoins and memecoins as well as the established options.

5. Avoid the scams

With the rising popularity and many options available, there will be those looking to take advantage. Being aware of the potential scams is important and keeping up to date with industry news can help ensure you stay informed. Using reputable platforms to purchase coins is crucial and when exploring altcoins, you’ll need to be buyer aware of potential bad actors. Like any other financial scam, those that promise guaranteed returns or seem too good to be true may in fact be that. Using trusted sources and verifiable reviews from users will help you avoid the pitfalls.

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