Yeah! What is even the deal with that? Why does it have to sound so complex? This is the term that ties all the links together, hence, it is understandable that you really want to get what it is about.
The word, âcryptocurrencyâ, has become so popular to the point that inquiring about what it really means may earn you some funny glances because âCome on, itâs crypto! How can you not know about this crypto that everyone is talking about?â But this shouldnât be because we also understand how complex it is to understand. So, letâs give you a hand there.
Cryptocurrency is a type of digital or virtual money that uses cryptography for security. Unlike traditional money, or fiat currency, issued by governments (like dollars or euros), cryptocurrencies operate on a technology called blockchain, which is a decentralised network of computers. This means no single entity, like a bank or government, controls it. The most well-known cryptocurrency is Bitcoin, but there are thousands of others, like Ethereum and Litecoin. These digital currencies can be used for various transactions, from buying goods and services to trading for profit, much like you would with stocks.
Cryptocurrency vs. Stocks : Whatâs the better choice?
Your choice depends on your risk tolerance and investment goals. If youâre looking for potentially high returns and can handle market turbulence, cryptocurrency might be for you. If you prefer stability and long-term growth, stocks are likely the better choice.
Obiex Blog
Josephine Inika
Fun fact, by the way. Did you know that a lot of people throw some crypto-related terms around without knowing what they really mean just to sound financially literate and advanced? Donât be hard on yourself. Moving on.
