What You Didn’t Know about Buying & Trading Cryptocurrency

Is Bitcoin the future of currency? Should you place your hard-earned cash in cryptocurrency instead of more traditional investment options? Why has cryptocurrency exploded in popularity despite only existing for a decade? These are the types of questions asked by those on the outside of the cryptocurrency bubble.

Yet make no mistake: cryptocurrency and Bitcoin are all the rage right now. However, if you haven’t jumped on the bandwagon yet, you might be confused about what this form of digital currency actually entails. Don’t worry; you’re certainly not the only one. In fact, there’s plenty to learn, even for those that specialize in cryptocurrency investments.

Whether you’re a beginner or an expert, here’s what you didn’t know about buying and trading cryptocurrency – including some fun facts that are perfect for regaling your friends and family.

The reasons people use cryptocurrency

As the title of this article highlights, people use cryptocurrency as a commodity for trading. The reason for this is simple: the return on investment can be massive when compared to traditional investment opportunities. You only have to look at these success stories listed by Digital Surge, which shows how people made minimal investments and became millionaires – sometimes even by accident.

Aside from its huge trading potential, there are various uses for cryptocurrency. Even though it is only accepted by a limited number of online retailers, people sometimes use it to buy (or sell) products and services. Some simply use it as an alternative way to store their wealth rather than relying on a bank.

Getting started with the right exchange platform

If you want to get started in the world of cryptocurrency, there’s good news: it’s fairly simple to do. You will, however, need to utilize an exchange platform.

Cryptocurrency exchanges are plentiful, which means you have to put in the research before opting for one. Fortunately, various exchanges boast a strong reputation and are trusted by many users. Yet if you were to select an unauthorized exchange, for example, you can effectively wave goodbye to your money before you even see how it performs on the market.

Along with an exchange, you also have to pick a wallet. Most will opt for a software wallet as opposed to the hardware equivalent, mainly due to the convenience it provides for trading. In effect, this wallet is used to store, receive, and send your cryptocurrency.

There’s only ever going to be 21 million Bitcoins available

Bitcoin is a digital currency. Surely it will possess an infinite amount of coins? The answer might surprise you – well, unless you’ve read the title of this section.

Because it’s true: there will only ever be 21 million Bitcoins available at any one time. At least that’s assuming Bitcoin continues to follow its original protocol. For those who like to mine for Bitcoins, this might not sound all that promising. The figures also don’t paint a pretty picture, as more than 18 million Bitcoins are already in circulation.

However, not all hope is lost. Even though the large majority of Bitcoins were mined in a little over a decade, another 120 years will be required before the remaining amount is collected and available to the public.

What happens if you lose your private Bitcoin key? Answer: it’s not good

Did you know that about 25% of mined Bitcoins have been lost? This is because if you lose your private key, the funds effectively become lost in the ether. The story of James Howell perhaps best spotlights this cruel situation, as he once threw away the hard disc which contained his private Bitcoin keys. As a result, he cannot gain access to his 7,500 Bitcoins.

Ouch.

Cryptocurrencies cannot be banned

If you have been keeping tabs on cryptocurrencies for a number of years now, you’ll no doubt have encountered various stories about its ‘controversial’ nature. From major hacks to it being deemed an illegal form of currency, these stories are used in an effort to scare people from investing in cryptocurrency.

Just remember: cryptocurrency threatens to alter the entire way currency works right now. As a result, there are many government officials and bankers that would love to see the demise of Bitcoin and co.

Another point to remember is that cryptocurrencies cannot be banned. Certain companies like Bangladesh and Thailand have tried to do so without success. In reality, cryptocurrencies can only be regulated and not outright banned. This means anyone with an internet connection, exchange, and wallet can conduct business and trades with cryptocurrency.

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