You must have heard the words Cryptocurrency by now – Maybe you are aware of the word Bitcoin but what does it all mean.
A simplified way to explain this is that Crypto is a new way to process transactions and this tech is classed as an asset.
Different people and companies can create their own Crypto Assets and these are know as coins or as some refer – Crypto Currency.
Right now there are over 10,000 different Crypto Coins ranging from the main one Bitcoin to others known as shitcoins which is basically a coin with no purpose. The most recent of these in the news is Dogecoin.
The way that the coins process transactions are by using what is called a blockchain. This is simply several blocks which are connected together – Hence the name Blockchain.
The block is a series of transactions and all the blocks combined are held on what is known as a ledger.
Imagine a black excel document – This would be the ledger. Each tab within the document would be a block and each row on the individual sheets would be a transaction. That is the basic concept of Crypto.
The ledger is public and anyone can view it at anytime but the transaction addresses are anonymous to provide protection.
So now that you have the basics, let’s consider why it’s important to take action.
The value of Crypto is based on both media hype and potential real world application. If you look at the economy it’s factually proven that fiat (government owned) currency is in decline due to inflation. Typical assets like houses are not available for many so Crypto offers a very low cost entry into the world of investing.
Since Covid most interest rates in banks are 0.01% which means for every £100 you save, you will earn 1 penny per year interest. You would need £10,000 in a savings account just to make £1 per year interest which isn’t going to help you.
To give this context – With £10,000 invested you will generate £10 in £10 years and just £100.50 in 100 years.
Right now Crypto Assets are growing at anything between 5 – 5000% which is why they are such a hot commodity right now for people trying to escape the rat race.
This is without even looking at the potential benefits that the technology itself has, from creating digital artwork to a storage system that can never be deleted, a potential new system to replace Spotify and ensure that artists get paid fairly and the most common we know – sending money between two people without fee’s due to banking establishments.
So how can you get started.
Well to store / Purchase and Sell Crypto you need a Crypto Wallet – This is a digital version of a real life wallet and quite like your mobile banking app.
Well there are many ways and what I’m about to share is not financial advice but it will show you how we invested in Crypto and generated gains in excess of 200% in just under a month.
First you need to understand that anything you invest is at risk, Crypto is not backed by governments (in fact they hate it), there are scammers. There are possible mistakes that can cost you everything. For this reason, test everything and diversify your portfolio to minimize risk.
I did this by creating 3 different accounts
https://crypto.com/app/hf465r65n4 – This is my main Crypto Visa Card
https://www.binance.cc/en/register?ref=I9ZRQYSV – This is where I trade Crypto to generate more
https://www.coinbase.com/join/woody_is – This is a way to split your portfolio to minimize risk but I use it for storage not trading.
Finally EVERY trade or purchase is taxable so I use this – https://www.cointracker.io/i/Tj5fZJnhxrJ7 to ensure I manage my accounts.