FINANCE AT YOUR FINGERTIPS by Moses Ayiku, Jr. MBA OP/ED
Cryptocurrencies
Today, investing has become even more complex with the introduction of diverse financial assets. Cryptocurrencies have evolved into an investment option. The challenge is that most people do not understand cryptocurrencies. A simple rule in investing is that one should steer clear of investment options that one does not understand. However, with a concerted effort one can learn about cryptocurrencies and then determine whether it is a viable investment option.
What makes cryptocurrency so interesting?
It can be a long-term store of value. Unlike fiat money, most cryptocurrencies have a limited supply, capped by mathematical algorithms. This makes it impossible for any political body or government agency to dilute their value through inflation. Bitcoin, Ethereum, and other cryptocurrencies are revolutionizing how we invest, bank, and use money.
Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides.
One major reason why cryptocurrencies are gaining attention is because it’s a decentralized processing and recording system and can be more secure than traditional payment systems. Blockchain technology is the technology used by cryptocurrency. A blockchain is simply a digital ledger of transactions. This ledger (or database) is distributed across a network of computer systems. No single system controls the ledger. It’s a decentralized processing and recording system and can be more secure than traditional payment systems. The decentralized network of computers keeps a blockchain running and authenticates its transactions. Transactions are secure.
To start learning about blockchain, you must start off by learning the basics of Blockchain and cryptocurrency. You can begin this by joining various blockchain communities and visiting Bitcoin forums on Reddit, crypto vlogs on YouTube, and Blockchain news on Coindesk.
The following are some of the best Cryptocurrency Trading Courses:
· BitPanda
· Coursera – Blockchain and Cryptocurrency Explained
· Coursera – Cryptocurrency and Blockchain: An Introduction to Digital Currencies.
· Coursera – Bitcoin and Cryptocurrency Technologies.
· EdX – Bitcoin and Cryptocurrencies.
· LinkedIn Learning – Cryptocurrency Foundations.
The key is knowledge! One must make the effort to gain quality knowledge about cryptocurrencies before investing in them. By acquiring this knowledge, one is in a better position to make informed investment decisions.
Next week, we shall continue to share pertinent information about investing in the stock market.
Please feel free to share with me your questions and experiences on investing in stocks. I will do my best to respond, and, in some cases, I will write on some of these questions.
Your questions and comments can be sent to localtalknews@gmail.com.
