Though you may not have a choice. Michael Seymour, an advisor to Luxolo Financial's Portland exchange desk, said that cryptocurrency is almost inevitable in modern society.
“As digital technology further drives commerce and society, simply participating will require owning and spending cryptocurrency,” Seymour said. “Although there are still some dramatic short-term price fluctuations, the long-term value of bitcoin continues to appreciate. Nations and corporations around the world are investing in bitcoin. It is redefining global trade.”
Seymour may be biased given that he works in the field, but cryptocurrency has its clear advantages. It's independent of monetary policy, so it's protected against inflation or political instability (but one bad investment or nasty hack could set you up for losing everything, with no bank to back it up). The cryptocurrency is also not controlled by any government or financial institution, so it cannot be seized, confiscated, or restricted from its owners.
However, there are risks. The value of cryptocurrencies fluctuates thousands of percent over a short period of time seemingly for no reason. However, over time, Seymour said, we will see volatility level out, as we have with financial assets throughout history.
"Cryptocurrencies are much more volatile than other assets, but that's a time perspective," Seymour said. "When stocks were first issued, there was the same kind of extreme volatility."
Not all types of cryptocurrencies are the same either. While meme-friendly cryptocurrencies like Dogecoin and Shiba Inu can be risky, older cryptocurrencies like Bitcoin have been some of the best-performing investments in the last decade.
"There's a lot more value invested in Bitcoin, it's already starting to level off," Seymour said. “In general, now that Bitcoin is over $1 [trillion] appreciation and increasing adoption by individuals, institutions, and governments alike, the global bitcoin market is signaling long-term strength, stability, and longevity.”
Plus, with that risk comes the possibility of reward.
“There is no other asset class where you can see a 100,000% gain over the course of the year,” Seymour said. "That happens regularly with cryptocurrencies."
Okay, okay, I'm going to bite. How does a girl get some Bitcoin?
Seymour said the first step is to get a cryptocurrency "wallet," a smartphone or web app protected by a username, password, and two-factor authorization. Apps like Atomic Wallet and Exodus Wallet are easy to use for beginners.
So, buy cryptocurrencies. There are a number of different types to choose from. Bitcoin is the most popular, but Seymour said it also works with Ethereum, and there are plenty of others to choose from if you're feeling experimental; after all, a high risk could lead to an even higher reward.
You can buy crypto by going to a Bitcoin ATM. Maine Bitcoin LLC has kiosks across the state where you just need to show up with cash and your digital wallet. You can also buy from online companies like Swan Bitcoin and Coinbase, though these platforms often come with their own fees and setup instructions.
Don't be intimidated by the big price tags, either. You can buy a fraction of a cryptocurrency unit, up to eight decimal places.
Seymour said a “practical” initial investment in crypto would be “around $500” if you want to see some real returns, but first-time crypto investors should only invest what they can afford to lose.
"For some people, that's going to be $10, and honestly, that's enough," Seymour said. “$10 allows you to set up an account with some kind of exchange or some app on your phone and you start to see how things work and you can pay more attention to market activity that gives you enough confidence to try a little more”
Once you have cryptocurrency, you can use it to pay for goods or services, as an increasing number of small merchants and large businesses accept Bitcoin and other cryptocurrency payments. You can also connect with a service like Luxolo to help you invest more of your 'coin'.
Or, if you're like me and just dipping your toes, you can stash some Bitcoin in a wallet on your phone and watch the investment grow over time.
If I can crack Google Calendar, I can certainly crack this.
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