Digital currencies like Bitcoin, Ethereum, and others have made huge waves in recent years. This is, in part, because people are growing increasingly frustrated with centralized banks. They come with so many fees and rules, that the idea of a decentralized currency is appealing.
What is a Digital Currency?
On the surface, a digital currency is exactly as it sounds - a form of currency that exists only online. Unlike regular money, you can’t withdraw bitcoin or any other digital currency in cash - but it still has value!
Digital currencies are also called crypto or cryptocurrencies. This is because transactions are secured through cryptography and they exist in a public, digital domain know as the Blockchain. This is instead of going through a regulating authority (like a bank).
Powerful computers create a cryptocurrency as they solve complex mathematical problems. These complicated equations result in a coin. Digital “coins” are then purchased from brokers. While you own nothing tangible, you do own this digital coin on the blockchain.
Using Your Digital Currency
Once you own your bitcoin you can then sell it at any time for whatever currency you choose. When you buy digital currencies, though, it’s usually smart to sit on them for a while as they increase in value.
In fact, many businesses both physical and online, have started accepting payments with bitcoin. Until recently, you had to sell your bitcoin for your local currency to spend it, but times are changing!
Why You Should Care
So, why should you care about this unpredictable digital product that you can’t even hold in your hands? It’s true that digital currencies and Bitcoin, in particular, have a reputation for being volatile. As a long-term investment, though, there are many benefits.
Protection From Inflation
All currencies around the world are subject to inflation, and many have diminished in value. Cryptocurrency, however, only has a fixed number of coins in existence. So, as the demand for these coins increases, so does their overall value - even if it goes up and down day to day.
Secure and Private
While banks do their best to ensure the security of their customers, there are hacks and breaches sometimes. The blockchain is complex and virtually impossible to decode and crack. They also don’t store account data in a way that could be connected to an individual person.
You can use cryptocurrency on its own, or you can exchange it for different world currencies. You can sell it for the US dollar, the British pound, the Euro, and more!
This means that you can buy and trade in multiple currencies and use crypto to effectively convert one currency into another. It’s also a great way to exchange and send money internationally without the fuss and fees that come with banks.
Don’t Waste Time, Invest Today!
Many believe that bitcoin and digital currencies are the future of money. It’s certainly picking up steam with every passing year. More influential figures and companies have begun to recognize its legitimacy. This has caused many to take note and pay more attention.
There is never a better time to start investing in Bitcoin than right now, and a good platform is crucial. BitLeague offers a free account, 24/7 support, and top-notch security. Reach out today and we’ll help you get started!