Everyone has heard about bitcoin, whether it be on the news or from the countless internet tales of those who strike it rich from investing in bitcoin. Though most outlets do a particularly poor job of educating their audience on what it is or why it is so controversial. The reason for this being that the cryptocurrency is the bane of every government’s existence and perhaps the most volatile form of investing.
Forex is a popular manner of short term investing that also involves currency. You can trade one established currency for another while taking advantage of their fluctuations in worth to make a profit. What forex investors loathe is government or federal bank interference, which dictates how well any particular currency can perform. The reason so many love cryptos: no federal regulation at all. That means bitcoin and other currencies like following the ebbs and flows of a market that has no third party interference whatsoever. That means its price and worth are as erratic as changes in demand are.
Before bitcoin was made available to buy via online brokerages, the only way to fill your electronic wallet would be to “mine” for it. Special computer programs can turn your average PC into a rig that uses its processing power to generate coins. The only drawback was the immense amount of energy needed to drill for even one coin. The most dramatic cases were traders having to store their servers underwater to deal with overheating or even renting out a hydroelectric dam to do all the work. While still both viable options, you can still easily use select brokerages to help you invest.
Robinhood is a leader in making stock buys at an affordable and accessible rate. They were among the first to allow people to invest in crypto and continue to give a diverse selection of them, which includes Bitcoin, Bitcoin Cash, and Ethereum. One should treat investing in crypto as they would any other stock —never pour all your eggs in one basket. Crypto should just be one of many kinds of investment and you should be researching each of them before pouring in a cent.