Checking Out Cryptocurrencies

“I’m involved in the stock market, which is fun, and sometimes very painful” – Regis Philbin

Generative Ai Stock photos by Vecteezy

Most, if not all of you, will have heard of the terms “Cryptocurrencies” (“Crypto” for short) and “Bitcoin” in recent times, and this is due to the rapid emergence of the trading of these virtual currencies. Although these digital currencies do have the potential to make you a lot of money, there are so many risks associated with cryptocurrencies that are essential to know, and we will help inform you of these below…

What is Crypto (The Technical Bit)

Now this may sound confusing, but hang in there. Crypto exists using blockchain technology (a way in which a data base stores information). This means that there is no centralised authority, in other words, no one is in control! As you can probably imagine, this leads to high volatility (large variations in prices).

Bitcoin as an Example of Volatility

Let’s use Bitcoin (the largest cryptocurrency) to show price volatility in recent times.

On October 15^th, 2023, one Bitcoin (BTC) was worth $26,854. On March 12^th, 2024, this same Bitcoin was worth $71,490. Finally, in more recent times, September 8th, 2024, one Bitcoin was worth $54,157.

Check out the ever-changing price of Bitcoin here!

Keeping Safe with Crypto:

As crypto is very accessible, it’s more important than ever to make sure you are aware of what you are doing. Firstly, in an age of growing social media, there are many “Financial Advisors” online who advertise crypto “schemes”, promoting high returns in exchange for minimal effort. You should be wary of these, as many are in fact scammers who have no experience and knowledge of crypto trading, and falling victim to these scams may negatively impact your future in terms of getting loans and credit.