Marcus Richards
When you are starting your own business, there are going to be so many different items on your plate. You will be running through a never-ending checklist loaded with “needs” and “would likes.” You will be fielding calls from potential investors and business partners and requesting calls with many more. You will be building your web presence and figuring out what your branding looks like. You will be gauging the state of the competition and how it is changing with each successive piece of news from a marketplace that is in a constant state of flux.
On that note, it can be difficult to get a firm grip on the state of things because everything is changing so rapidly. The technology is evolving, the challenges are evolving, and even the currency is evolving. If you are launching a new business, you will probably have been wondering what you should do about the question of cryptocurrency. Maybe you are thinking about whether you should accept it as a form of payment, or maybe you are thinking about whether it is a smart investment to help you build your asset portfolio.
If you have never dipped your toe into the waters of cryptocurrency before then it may all be a little overwhelming. We see the sensationalised headlines, we see the tweets from industry leaders, and we see both scepticism and enthusiasm from our social circle and our professional network. The most important thing that you can do if you are thinking about getting involved in cryptocurrency is to educate yourself.
Here are a few of the most commonly asked questions when it comes to cryptocurrency and some of the most important things that you need to know.
First Things First, Make Sure You Understand The Basics
Feel free to skip this point if you already have a firm handle on what cryptocurrency is exactly. If not, then the essential concept is fairly simple. Cryptocurrency is a digital currency that has no physical element. Coins are traded using blockchain technology, which creates a record of every transaction that the coin has been through. Cryptocurrency is entirely decentralised, which is one of the reasons why it is so appealing for a lot of people around the world. In locations where the security of a bank or national currency value is a question mark rather than a given, it is easy to see how cryptocurrency is a very real game-changer.
There Are Many Different Forms Of Cryptocurrency
Even though cryptocurrencies have been around for a long time now, you would still be forgiven for thinking that Bitcoin and cryptocurrency are one and the same thing. This is because Bitcoin was the first and it remains the best known of the different cryptocurrencies out there. Indeed, we remember the stories about the world’s first Bitcoin ATM launching in Vancouver in 2013. However, there are a legion of different coins out there and many of them operate in different ways and for different purposes. For example, you may have heard of Ethereum, which is the second most popular form of cryptocurrency on the market. While Bitcoin is a currency pure and simple, Ethereum is part of a bigger picture that develops the Ethereum platform.
Blockchain Is The Force That Drives Everything
We mentioned Blockchain technology earlier, and it is one of the most important elements of the broader cryptocurrency picture. Blockchain technology is how we keep track of each and every transaction that each individual coin has been through. The Blockchain record is completely secure, which means that it cannot be tampered with or erased. Once a coin transaction has been recorded, it is there forever for anyone to look at.
Blockchain is so named because the data is recorded onto blocks that are connected, and a new block is started once the previous one has been filled. As you might imagine, the potential of this technology is incredibly exciting for the tech industry, and this is we have seen so much investment into cryptocurrency-related tech in the last few years. For example, Microsoft has partnered with Ethereum because they are interested in its applications for combating piracy. It is also one of the reasons why cryptocurrency won’t be going anywhere any time soon. Which brings us to our next point.
Cryptocurrency Is Here To Stay
One of the biggest cliches that you will hear when cryptocurrency is being talked about is that it is a fad. People have been claiming that crypto is just a flash in the pan for years now, but it is impossible to ignore the fact that crypto has not gone anywhere. In fact, we have seen quite the opposite. Over the last few years, we have seen something of a mainstreaming of cryptocurrency. The popular image of a crypto trader has gone from someone who lives in a basement and is possibly up to no good to someone who more closely resembles what we think of as a stock trader. We have seen more and more banks and big companies offering crypto options. We have indeed come a long way from the first Subway accepting Bitcoin as payment being big news. Now, your grandparents probably have a good idea of what Bitcoin is even if they have not heard of Blockchain. The reason why so many new businesses are asking if they need to factor cryptocurrency into their plans going forward is because it is clearly going to be here for a long time to come.
You Need To Do Your Research
If you want to buy or sell cryptocurrency, there are a few steps that you are going to have to take. The first is to be clear on what exactly it is that you want to do with it. Then you need to be clear on which coins you want to invest in. Just as you would find with stocks, there are more volatile options than others and you will find that you are never going to be short of people telling you that they have got a guaranteed big win for you when they actually have anything but.
The best way that you can give yourself the best start is by finding a cryptocurrency trading platform that works for you. There are many different platforms out there, and some of them are calibrated for different experience levels. You should also remember that some platforms are only accessible to certain countries. If you are wondering how to buy Bitcoin in Canada in 2022, then read this guide from Wealthsimple. Wealthsimple have a range of different guides and products to help you to do more with your investments.
Cryptocurrency Is Volatile
If you are thinking of making cryptocurrency part of your business plan, then you need to be aware that it is an extremely volatile asset. This can obviously be great news in certain cases, as we have seen values skyrocket in the blink of an eye. On the other hand, you can see an investment turn to dust just as quickly. You do need to have an eye for a good investment and nerves of steel if you are going to put some money into cryptocurrency. Try to avoid making snap decisions if you can help it and think carefully before you make any new investments. There is always a fine line to be walked between bailing out at the right moment and selling up just before your investment recovers. Be sure to read up on recent trends in the market before you jump in.
You Will Need To Watch Your Security
Arguably an even bigger myth than the idea that crypto is suddenly going to vanish at some point is the myth that dealing in crypto is inherently unsafe. The truth of the matter is that the transparency afforded by crypto is a big factor in making it safe, and that a lot of traditional financiers want to paint cryptocurrency as unsafe.
However, it is important to note that cryptocurrency is a valuable asset and as such, there will be people out there who want to get their hands on it. Cybercrime has risen drastically in the last couple of years to the extent that governments have started getting involved, and there is no sign that things are going to change any time soon. If you are thinking about making cryptocurrency a part of your business, then you will need to make sure that you are taking the necessary steps to protect your investment. You should be using two-factor authentication with any account that is connected to it, and you should be using a password generator. For cryptocurrency specifically, it is well worth investing in hot and cold wallets. A hot wallet is a programme that keeps your coins secure while still making them accessible to trade. A cold wallet is a removable device where you can download your coins and keep them offline for maximum security.
