In the past few years, most people have heard about cryptocurrency or at least about Bitcoins. The following article may educate you on what exactly they are, what they are used for and how to get them.
What is cryptocurrency?
Cryptocurrency, as the name might suggest, is virtual money. Imagine you’re playing a game and you kill a monster and get some gold for it, that gold isn’t physical and it can only be used in that game. Crypocurrency is similar, you can buy the coins online or you can mine them. Either way, you can’t just take the coins out of your computer and spend them in your favourite clothes store. Well… you can but it isn’t as simple as that.
Why use cryptocurrency?
You might be wondering, what’s the point? Why use cryptocurrency when you can just use PayPal to buy things. Well cryptocurrency is secure, there’s no card involved so there’s no way of someone finding out your bank details, it’s anonymous, and it’s also pretty untraceable.
You can use cryptocurrency to buy things such as gift vouchers, flights and hotels without disclosing your bank details to the company.
A lot of people who are interested in cryptocurrency don’t actually want it to buy things online, they want it to make cold, hard cash. And who can blame them? Everyone likes money. If you have the right setup, you can mine different types of cryptocurrency or you can buy and then sell it when the value increases, similar to the stock market.
It’s easier to invest in cryptocurrency, you don’t need any knowledge of it. All you need is an app on your phone that will give you the options to buy and sell cryptocurrency right into your bank. However, the problem with this is that the value of crytocurrency can be unpredictable and you can end up losing money rather than making it.
The other option is to mine the cryptocurrency yourself. This is free but it can take a lot of time and there is costs for the right setup and then the electricity bill which is why a lot of miners have to give up. Sure, you could make £1,000 a month but then when the electricity bill comes in to over that, it really isn’t worth your time. You can buy mining rigs that are designed to mine more whilst keeping your power usage low but these can be pricey; anywhere between £1,000 and £10,000… and you still might not make much money. If you’re going to start mining, my recommendation would be, unless you really know your stuff and are confident, start small and build your way up when you feel confident enough to spend so much on a mining rig. Of course, you also need a beast of a computer (hence why I’m currently saving up to build one hell of a good computer).
I hope this has been a good introduction to cryptocurrency and what all the fuss is about. If you have any questions or want to give a bit of input feel free to post in the comments below!
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