- Recently, “Should I invest in crypto money?”, “Why do people buy Bitcoin?”, “What is the purpose of buying crypto money?” and “Should I invest now or is it too late for crypto?” questions arise.
Recently, “Should I invest in crypto money?”, “Why do people buy Bitcoin?”, “What is the purpose of buying crypto money?” and “Should I invest now or is it too late for crypto?” questions arise.
For starters, you need to educate yourself about any investment before making a deposit. However, this post doesn’t really feature an introduction to cryptocurrency. It is an investor approach that aims to answer the above questions.
For example, we will not discuss technology such as the hash power behind Bitcoin, blockchain, SHA-256, mining, or anything that goes into the real backend.
This post focuses solely on the idea of buying crypto, what it does for you, how it differs from traditional assets, and what you can do with it.
What does it mean to buy crypto?
Let’s get straight to the point, let’s talk about buying crypto. What does it mean to “buy” bitcoin? How about “buying” an Ethereum?
How would you like to buy only a portion of Bitcoin?
If you’re going to buy crypto, what you are actually doing is moving Bitcoin from one wallet address to another. It’s like taking a dollar bill from your wallet and putting it in someone else’s wallet.
You see, to keep Bitcoin or any other cryptocurrency for that matter, you’ll need a wallet address that the crypto blockchain can save. You cannot keep Bitcoin without a wallet. This is really important.
The blockchain keeps a public record of every single cryptocurrency, address, data and much more on some blockchains.
So if you are going to buy crypto money, you will need a wallet address. But don’t worry, these are easy to get. You can even join an exchange, such as Coinbase, that will create a local account on their platform linked to their wallet address.
This local account allows you to easily move, trade and send money without actually having to interact directly with the blockchain or wallets.
In short, buying crypto is to transfer a crypto (or part of it) from a wallet address to your own.
What does it do to own cryptocurrency?
With a short answer, it allows you to claim ownership of this token and allow you to carry, trade, sell or simply hold. It is very similar to holding a stock of a company.
For example, you can buy Bitcoins to grow your wealth and keep it in your local exchange wallet. It’s like people trading stocks. Or you can send it to your friend’s wallet as a gift, deposit it in an interest account to get passive returns, store it for value. You can use it as a currency on some select websites that accept Bitcoin.
Why do people buy Bitcoin?
You might think that Bitcoin has a digital dollar that:
- Payment, gift, etc. Send to anywhere in the world.
- Its value changes every day according to the market. It can go up to $ 100,000 one day!
- You can take it out of the network and store it in a cold wallet.
- Governments can’t stop
As you can see, there are many benefits to buying Bitcoin! People buy cryptocurrencies for many different reasons. Some people like it because it is different. Some want variety in their wealth, others just want to get rich.
Whatever your investment reasons, people have many reasons to invest real money in cryptocurrency. Moreover, the cryptocurrency ranks above a trillion dollar market during the last bull run. This is huge! If you’re still wondering why people can put their real money into the money of the internet, then maybe take some time to realize, the world is moving towards a digital age. A day when money is completely digital may already be soon. It might be a good idea to go ahead and learn more today! Who knows, you can buy yourself some cryptocurrency.