Technology has disrupted our entire life-changing how we work, interact, and make financial transactions. Businesses and customers now have more options for making payments, which has led to the massive evolution of money. This evolution has necessitated the digitization of payments and reward systems, giving birth to the emergence of a new payment system called Cryptocurrency.
While it may seem popular, many do not yet fully grasp what it is and how it works. Thus, this article briefly highlights the basics of Cryptocurrency.
What Is Cryptocurrency?
Cryptocurrency is a virtual payment system that involves a peer-to-peer system that can enable anyone to send and receive payments without relying on banks to verify the transactions. Cryptocurrency exists mainly as digital entries to an online database that describes specific transactions. The funds transferred are recorded in a public ledger, and you store your Cryptocurrency in a digital wallet.
Although some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely virtual. It will also interest you to know that Bitcoin may probably be the most popular of cryptocurrencies, but more than 2000 different types of cryptocurrencies exist, and more still being developed.
This new payment system uses encryption to verify transactions, which would usually require a two-factor authentication process. However, while securities may be in place, it does not rule out the fact that cryptocurrencies are still hackable.
Investing in Cryptocurrency -
Cryptocurrency has been noted to be one of the riskiest investment choices out there. Therefore, no amount of time and effort spent in knowledge-gathering is wasted. If you're planning to invest in cryptocurrencies, these tips can help you make educated choices.
Research
Do your research before making any investment in Cryptocurrency. Learn about cryptocurrency exchanges. There are several platforms where you can buy and sell digital currencies, ensure to read reviews and talk with more experienced investors before committing any money into it.
Understand How to Store Your Currency
Storing your digital currency is an essential aspect of Cryptocurrency. You can keep it in what is referred to as a digital wallet. There are many types of wallet, and they come with their benefits, technical requirements and security with some of them sharing many similarities. Therefore, ensure to do your research on the most suitable wallet to store your digital currency.
Diversify Your Investments
Just like any other form of investment, diversifying is an intelligent strategy when investing in Cryptocurrency. For example, avoid putting all your money in Bitcoin just because it is the most popular. Instead, there are several options, and it's wise to spread your investment around to other currencies.
Some of the top-performing Cryptocurrencies in terms of volume are Bitcoin, Ethereum, Binance, Dogecoin, XRP, Tether, Cardano, Polkadot, Uniswap, Litecoin Etc.
Prepare for Volatility
The cryptocurrency market is volatile, so expect ups and downs. There is bound to be dramatic swings in prices just by the nature of the market. If you are not prepared mentally for any loss, you may need to reconsider your choice of investment in Cryptocurrency.
While we want you to explore several investment options, we encourage you to prioritise securing your future and your dependents with a Retirement Savings Account (RSA). With RSA, you set aside some money from each paycheck and deposit it with a Pension Fund Administrator (PFA) for a financially stable life in retirement.
To open an RSA, visit any Oak pensions' office nearest to you to pick up an RSA form or download it online at www.oakpensions.com, fill the form, and return it to the Oak Pensions' office. If you cannot pick up the form at any of our locations, send us an email at info@oakpensions.com or call our Marketing Manager on 09087448661 to request a visit by an agent for registration.
While we want you to explore several investment options, we encourage you to prioritise securing your future and your dependents with a Retirement Savings Account (RSA). With RSA, you set aside some money from each paycheck and deposit it with a Pension Fund Administrator (PFA) for a financially stable life in retirement.
In summary, Cryptocurrency is the wave of the moment, but it's still in its fledgling stage. Like every other new investment vehicle, it comes with its challenges, so be prepared. If you plan to participate, do your research and start conservatively.
ABOUT THE AUTHOR:
Ernest Ademola Ehigie is a Copywriter, Content Developer, Author, Brand Consultant, and Communications Manager with over 5 years in marketing communications. He has written several articles, policy documents, press releases, radio and TV adverts for businesses and organizations. He's the author of the book, "Why You Must Lead" and currently works as a content manager for Detail and Avedia, a leading retail and media consulting firm.