From the stock market money tree grows a new branch: cryptocurrency. Since it is digital, it goes with our digital age and may replace physical currency. The value of the crypto coin depends on how much is invested in the coin. Here is a breakdown of cryptocurrency and some examples.
According to NerdWallet, the official definition is “is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.” Think of it as arcade tokens but with a stock market spin. Crypto coins are mined and start worth $0.0001 per coin. Then, as investors buy crypto coins, the value goes up. One of the craziest aspects is that cryptocurrency is open 24/7, making it more unpredictable. This digital money trend aims to create a decentralized financial system unregulated by any singular country or financial institution. Currently, there’s not a large real-world application for purchasing items with crypto. However, many people believe that crypto will have a future in financial transactions.
Crypto has been around for about 10 years, so it’s still a relatively new concept and has not quite solidified itself yet. Therefore, it can be unpredictable. Many factors contribute to crypto value: celebrity hype, major news events, holidays, and even memes. The three most relevant ones are Bitcoin, Dogecoin, and Eytherium. Though crypto can be a bumpy ride, the biggest incentive is that the people completely control it. Therefore, there are no APRs, interest, banking fees, etc. You can buy/sell cryptocurrency through Robinhood or similar accounts.
We eagerly wait to see what happens when a crypto coin reaches or surpasses one U.S. dollar. Right now, Bitcoin, which was the dominant one, is sinking as Dogecoin rises. There is talk of being able to buy Tesla products with Dogecoins. Crypto is certainly something to get invested with- it is the future stock market and currency. Let us know if you’re invested in any cryptocurrency or what you think about it!