What Is Cryptocurrency

What Is Cryptocurrency

 Cryptocurrency has taken the world by storm since its inception in 2009. With the onset of COVID, looming job security concerns, and the ongoing economic downturn, many are pursuing extra sources of income via a side hustle or passive income, or both.

Picture of Heather Farrell discussing crypto trading bots

And when it comes to investments and smart passive income – that is, money earned with no active or direct involvement – cryptocurrency has become a household name. 



Watch this short video for more….


But what is cryptocurrency, what separates it from more traditional investment methods, and how risky is it? Many questions abound, but with some countries adopting it as legal tender and experts predicting Bitcoin topping $100,000 in 2022, time is of the essence to get informed and consider investing sooner rather than later.



There is a lot of information out there and it can feel overwhelming if you are a beginner, but it doesn’t have to be. Let’s break down the basics and simplify the future of investing so you can take your piece of the ever-growing pie. 



What is crypto?


By definition, cryptocurrency – or “crypto” for short – is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography rather than by a centralized authority. 



The best advantage – and biggest risk – is that cryptocurrency is largely unregulated. There is nobody or no entity controlling it, governing it, or setting or enforcing rules and regulations. There is no “man behind the curtain” as we learned at the end of The Wizard of Oz. 



For many, the thought of an unregulated system can feel unsettling at first. But for others, this is its greatest selling point! This means no person, company, or governing body with ulterior motives has any bearing on your crypto outcomes. So, while this means you can’t easily access a 24/7 crypto customer service department, you can rest assured that financial watchdogs aren’t pouncing on your earnings either.


Are cryptocurrency and Bitcoin the same?


The short answer is no. While many use the two interchangeably, like “tissue” and “Kleenex,” they are not synonymous. 


Bitcoin, the “granddaddy” of all crypto, is merely a type of cryptocurrency. At one point, Bitcoin spiked to over $70,000 apiece, and continues to endure massive fluctuations that draw in those who don’t normally have access to investments with such potentiality for return. 


Fun fact about Bitcoin: There will only ever be 21 million Bitcoins. To find Bitcoins, they need to be mined and it will take until 2140 to mine them all. Mining is a process where a user purchases equipment and creates complex code so the computer(s) can dig deep in cyberspace and uncover them. Think of chickens when they forage in leaves for bugs to eat – Bitcoin mining is akin to this, only a Bitcoin is arguably much more lucrative than chicken feed. Just ask Cooper Turley, 25-year-old early Bitcoin investor turned millionaire. 



Why choose cryptocurrency over traditional investment methods? 


As previously mentioned, one of the best things about cryptocurrency is that is decentralized and unregulated, which also answers the question as to why people opt for cryptocurrency as an investment over other more traditional methods.


Regular investment methods are heavily regulated, often stacked with hidden fees buried in overlooked fine print, and tend to fill the pockets of fund managers fuller than anyone else. Further, Bitcoin is the #1 best-performing asset class in the last decade by 1,000%, outperforming everything from stocks, to bonds, to real estate. Long story short, that crypto investment might take you further than that conventional Roth IRA.



How does cryptocurrency move or get transferred?


Cryptocurrency utilizes Blockchain, an infallible digital ledger. Every single transaction occurring is automatically logged on the Blockchain and is, again, free of any alteration or manipulation from anyone or anything. 


While some fear a blackout or an outage could overthrow Blockchain technology, this is largely impossible. Should a highly unlikely cataclysmic event occur that does wipe out the Blockchain, the reality is, we will have much bigger problems at hand (like the end of the digital – and physical – world as we know it).


Many industries are being revolutionized by the adoption of cryptocurrency and when it comes to remittances – or money transfers – crypto has become an explosive innovator as a quick, safe, and affordable international payment system. 


If you live in your native country and don’t travel abroad often, you may be unaware of the vast, global scale for which remittances are used. Financial institutions are grappling to contend with Blockchain which enables the lightning-fast transfer of currency to loved ones in other countries without the antiquated and fee-laden methods of well-known predecessors like Western Union. 



Don’t fight it: Crypto is the future.


Here’s the bottom line: The next generation will not know a world without crypto and blockchain. Future 500 companies hold cryptocurrency in their balance sheets. Companies spanning many industries are scrambling to figure out how to adopt crypto and use Blockchain for their transactions. With Bitcoin being a top-performing asset by 1,000%, the positive prediction models, and a domino effect of ubiquitous adoption, one thing is clear: cryptocurrency is not a fad, but it is here for the long haul, and you want to get in while the gettin’ is good.



You Can Become Crypto Savvy in a Few Simple Steps


Feel like an expert yet? Don’t worry, this is just part 1 of 5 in my cryptocurrency series. Next up; Part-2 How To Invest In Cryptocurrency we will equip you with the knowledge and time-tested tips and tools to invest safely and wisely.


Watch the video above and subscribe to the channel so you don’t miss the next part in this game-changing series.


The Expat Entrepreneur

Online business expert with a unique approach to matching people and their resources with the best business model to offer that individual the highest chance of succeeding. She is also a crypto enthusiast and investor and a skilled digital marketer who promotes programs and services that she has personally vetted to her inner circle.



DISCLAIMER: The information provided on this channel does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is for educational & entertainment purposes only and is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is a high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.

Also, the links on this page may be affiliate links which means if you click them we may receive a commission for referring you to a product or service – at no extra cost to you. All recommendations made are on products and services that have been personally vetted so you can be sure that anything recommended here is top caliber in its class.