Cryptocurrency is a form of money created as digital tokens that let you pay other people or companies directly through various online systems. It's similar to paper money, except its value isn't intrinsic. Instead, cryptocurrency is only worth what people are willing to pay for it.
Cryptocurrencies like Bitcoin are created by a process called digital mining that requires extensive computing power to solve complex mathematical calculations. Seniors in Phoenix and beyond with a digital account can buy and sell these digital coins.
The technology behind cryptocurrencies is complex. Before investing, it's wise to learn more about cryptocurrencies by taking free online courses such as the Coursera Bitcoin and Cryptocurrency Technologies course from Princeton University.
The first crypto coin was Bitcoin, which was released in 2009. Later digital coins were called altcoins. According to Statista, there are more than 9,000 active digital coins on the market. Many are small, and some are special-purpose coins intended for use in things like online gaming. Popular coins that dominate the market include:
There are several ways to buy cryptocurrencies, including:
When investing as an older adult, carefully consider crypto-investment strategies. Make yourself fully aware of the risks involved, and adapt your investment strategies accordingly. Consider the following points.
Cryptocurrencies are subject to extreme volatility. Their values may sharply increase but may also collapse with little notice. Values are market-driven and not based on the intrinsic value of an underlying asset. For example, Bitcoin traded at $32,000 in July 2021 before shooting up to $68,000 in November 2021 and then collapsing to a low of $15,700 a year later.
Have a coherent investment strategy. If investing for the long term, consider your age and when you plan to sell your investments.
As with stocks, research the market to gain a good understanding of trends, currencies and exchanges. Always deal with ethical and professional brokers and exchanges, and don't be afraid to get professional advice.
Closely monitor your investments and avoid risky strategies. Accept the possibility you can lose the total investment if things go terribly wrong. Never invest critical savings in the hope you can grow them. It's more likely the opposite will happen.
There are no regulatory bodies that oversee cryptocurrencies, and crypto scam artists are adept at offering amazing returns. If an investment seems too good to be true, it's probably a scam. Watch out for promises of a generous monthly return on your investment, as no ethical broker will ever make such a misleading promise.
Depending on the exchange and the broker, you can store cryptocurrency in one of three ways:
Investing in cryptocurrencies can add a degree of excitement and spice to your life here at Bethesda Gardens in Phoenix, but don't take unnecessary risks. Never invest money you can't afford to lose, and stick with reputable exchanges and brokers that have a long track record. Always get professional advice before investing your money.
