More On Crypto
What is Cryptocurrency Investing?
Cryptocurrency is a decentralized global digital currency that has been around since 2009. It doesn’t have a bill or coin or any other physical equivalent; like we said, it is digital, meaning it’s completely virtual or online.
It can be used to pay for goods and services in a quick manner, but only by those businesses who accept cryptocurrency of course. In addition, many companies have issued their own virtual currencies, also referred to as tokens, with which you can buy their products or services.
Perhaps its most beneficial attribute for users is that it can be transferred online from one individual to another without requiring an intermediary financial institution like a bank.
Investing versus Saving
Investing is best for long-term goals, like retirement. Investing gives you growth over liquid assets and counters inflation. Your money is working on itself, whether the economy is booming, the area you’ve got real estate in is rising or you’ve backed a startup that is taking off. The money you’ve invested will have a return when you go to use it down the road.
Saving is best for short-term goals where you can easily access this money. The downside of stashing the money away in a high-yield savings account or Certificate of Deposit (CD) is inflation, currently at 3%. This means that if you put $100 dollars in your sock drawer for next year, your spending power will be roughly $97. You effectively have less money than the previous year.