Coinbase Is Putting You On to 5 Things You Need to Know About Cryptocurrency
Photo Credit: AfroTech / Coinbase

Coinbase Is Putting You On to 5 Things You Need to Know About Cryptocurrency

Securing the bag has become synonymous with modern culture. Everyone everywhere is looking for ways to build wealth. Whether that’s by mastering the 9-to-5, cultivating a small business or investing in stock and money markets, everyone’s hoping to stack their coin and increase their knowledge base. This is where Coinbase enters the chat.

Coinbase is an easy, secure place to buy and sell cryptocurrency. Designed with the user in mind, the online platform hosts learning modules for education and forums for individual and business investors, and it has a mobile app for convenience. Coinbase is always striving to help take the brain work out of cryptocurrency to ensure its customers never fumble the bag.

Although Coinbase is working to simplify how to navigate crypto, many people still have pause around the subject. After all, with anything relatively new, there’s always a bit of hesitation. 

Here are some things you’ll want to know as you enter the market:

Crypto Is the Real Deal

Cryptocurrency — crypto for short — is decentralized digital money that can be used across the internet. Crypto differs from traditional fiat currency because it’s not regulated by the government and doesn’t use a middleman, like a bank, for transactions. Because of this, crypto can be transferred globally at any time. It’s managed through a peer-to-peer system that allows anyone to participate. It’s one of the most-independent means for people to have full control over their assets.

Even though cryptos have been around since 2009, reservations remain. But there are so many benefits to cryptocurrency’s use and relevance for the future. Using crypto allows people to have independence and freedom with their assets. One of these freedoms is not being subjected to fees or the tedious protocols of brick-and-mortar establishments. With banks closing locations and ATMs becoming rarer, digital currency is convenient and more agile than traditional fiat currency or U.S. dollars. So, don’t buy into the hotepery. Crypto is legitimate.

Crypto Is Secure

With so much independence in the crypto market, one could wonder how their assets are safeguarded. Cryptocurrency is secured through blockchains, which are similar to a traditional bank’s ledger sheet. A block contains a detailed record of every sent or received crypto transaction. This is paramount for most cryptocurrencies because it allows payments to be secure regardless of the involved parties’ relationship. Based on the encrypted nature of these networks, payments made through blockchain could be more secure than a standard debit or credit card transaction.

 

For additional safety, each investor has a crypto wallet. Inside them, investors store private keys that include passwords that give access to cryptocurrencies. These wallets don’t go in your purse or back pocket. They come in many forms — from a hardware ledger (similar to a USB) to mobile apps like Coinbase Wallet — making using crypto as secure as shopping with a credit or debit card. Check out this guide for more tips for keeping your crypto secure.

Crypto Is Accessible

There are several types of crypto. One of the earliest and most popular cryptos is Bitcoin. Launched in the late 2000s by an anonymous individual who used the name Satoshi Nakamoto, Bitcoin was the first widely adopted cryptocurrency. It’s part of a blockchain that can’t be manipulated. There are only 21 million bitcoins and no more will ever be produced. Since its inception, the value of bitcoin has had its ups and downs, but it is currently valued in the tens of thousands.

Although Bitcoin is the most popular crypto, Ethereum, Cardano and others have seen rises in value. Increased value is encouraging for investors, but it’s important to note that the crypto market can be volatile and prices can vary. However, with proper strategy, crypto can be a force for investors. Whether you’re a seasoned investor or just getting your feet wet, you can access the market with an investment as low as $5 and without purchasing a full coin.

Because using crypto is the wave, the IRS has jumped on it. As a heads up to those using the currency, the government expects filers to report any digital currencies acquired in the applicable tax year. Based on a 2014 tax guidance, cryptocurrency is categorized as property and will be taxed accordingly.

Crypto Can Be Used Virtually Anywhere

While cryptocurrency is a great tool for investing, it also has real, everyday use. Millions of people use different cryptocurrency to buy stuff daily. A few ways people use crypto currency are:

  • Ordering items from your favorite online store
  • Paying the copay for medical services
  • Booking a room at your favorite hotel

The list of possibilities of using digital currency is constantly expanding. Coinbase Card can be used to spend crypto anywhere that VISA is accepted.

Crypto Is for Everyday People

The crypto market isn’t exclusive to elite and savvy investors. Anyone in the world can invest in digital currency. Unlike traditional markets, the crypto market has ease of access and availability. While navigating the money market can be intimidating, it doesn’t have to be. Once you’ve gained a solid understanding of what cryptocurrency is and how you want to use it, you can make wise financial decisions around how much you should invest and the best times to do so.

Here are two basic rules: Do thorough research, and don’t invest more than you can afford to lose. FOMO is not a thing you should fall victim to when investing your money. Building wealth takes strategy and techniques. Avoid scams and “too good to be true” promises. All investing comes with risk, so navigate the market based on your comfort and rely on learning tools like those provided by Coinbase to help take the stress away.

To learn more about the world of cryptocurrency, new trends and investment strategies, and even discover ways how you can join the team, tap in with the good folks at Coinbase to ensure your bag is secured.

This editorial is brought to you in partnership with Coinbase.