A lot of people know about cryptocurrencies such as Bitcoin and Ethereum. They’ve heard about the terms on the internet and they probably have a basic understanding of what they are and what they can do. However, to most people, cryptocurrency is just something they know that people trade. They’re aware that it can make them a lot of money if they like trading, but they’re not too sure why it’s traded or what it can be used for.
This is one of the inherent issues with cryptocurrencies–not enough people understand how to actually use it. If something is traded in such high volume and is worth so much money, then surely it should be more widely used? What use does it have for the average person?
Source: https://unsplash.com/photos/FvZWeD6FsQM (CC0)
Is cryptocurrency still just something to be traded?
One of the biggest misunderstandings around cryptocurrency is that people still think that it’s just something to be traded. This is due to all of the headlines around cryptocurrency that talk about its traded value and how its value can surge or plummet at seemingly random times.
Trading cryptocurrency isn’t exactly the easiest way to make a profit. It’s important to understand the basics of trading cryptocurrency and also keep in mind that it’s quite volatile, much like any other currency. While it’s an acceptable way to actually make money, you need to consider the risks involved as well. Day trading Bitcoin is difficult and around 95% of traders fail, lose money and quit. As such, you should consider it more of a long-term investment than something you day trade like other currencies.
Trading is already a niche thing for the average person to do and cryptocurrency is a further niche that requires a lot of knowledge in order to trade successfully.
Who accepts cryptocurrencies?
Cryptocurrency is a currency, after all, so surely there are places to spend it?
There are actually a number of places that accept cryptocurrency as a regular payment method. In fact, many payment processors are also accepting it as a valid payment method. Some countries, such as Japan, have fully embraced the idea of using cryptocurrency as a common payment method. However, there are still some stores and parts of the world where it’s not as common or even accepted.
Where can you buy cryptocurrencies?
So where exactly do you buy cryptocurrency?
The most common option is to get it from secure crypto exchanges. These are simple to use and have grown a lot over the past couple of years, making them extremely user-friendly. You’ll see prices for the top cryptocurrencies and there are plenty of instructions on how to buy and use them. It’s a simple process and you’ll be the proud owner of some cryptocurrency in no time.
So is cryptocurrency something the average person should care about?
Yes and no. While it’s certainly not going to see widespread adoption such as regular money (at least, anytime soon) it’s worth keeping an eye on especially if you’re interested in niche investments.