Wednesday, 11 April 2018

Cryptocurrency: For Smart People or For Everyone?

When it comes to cryptocurrency, it seems like there are new developments flooding the media each day. Knowing the details of how cryptocurrency investors will be taxed and what the best exchanges are can be complicated for average people who don’t have much experience with blockchain technologies. For some, it appears that getting involved in the world of cryptocurrency is a wise move only for smart people.

But the reality is, anyone can find access to cryptocurrency, no matter your IQ. If you take an IQ test and score particularly high, you will not necessarily make smarter investments in cryptocurrencies than someone with a lower score. This is part of the beauty of blockchain—it is, at its core, the same for everyone and offers the same opportunities.

So Why Is Crypto Hard for People to Understand?

Even though anyone can technically use, sell or buy cryptocurrencies and no central authority has total control, the technology is still hard for people to understand for the very reason that it is a new technology. In the history of new technologies, whenever an innovation is first announced, it often takes years to be integrated into and understood by the average consumer. Cryptocurrency is no different. 

Since blockchain technology is deeply related to software engineering, the topic itself is very technical. Furthermore, it is evolving at an incredible and rather unprecedented speed, making it difficult to contain and comprehend. This is why it is often difficult for people to understand, but this does not mean that all people can’t research the technology and eventually understand it, regardless of his or her knowledge or intelligence.

How to Get Involved as a Beginner

Knowing that cryptocurrency is not only reserved for smart people, regular investors and people new to the blockchain scene can start using and investing in crypto today. The first step you should take is to sign up for a wallet to store your cryptocurrency. Your wallet will be like your crypto bank account and will keep track of your trades and transactions.

Next, in order to begin trading, you will want to understand a few key facts about the exchange. For one, only a few exchanges let you purchase crypto with Fiat currency. Also, Bitcoin is still the most common trading pair, meaning you still have to hold Bitcoin to make the majority of trades. While this is likely to change as time goes on, you should still use Bitcoin for now as you make trades. 

Thus, with these easy tips, you can get started in the cryptocurrency market without having a genius IQ. After all, the point of blockchain is to give everyone a fair shot—so go for it.