In this episode of Get Rich, go on a financial journey with Carmen Perez as she shares professional tips and tricks for owning your bank account, from credit scores to crushing student loan debt.
If you are confused by cryptocurrency, you are not alone! Cryptocurrency can be a great investment opportunity, but it’s important to understand how it works before getting involved. Fortunately, financial expert Carmen Perez (@makerealcents) of Earn real pennies is here to break down the fundamentals of cryptocurrency.
On this episode of To become rich, Carmen explains exactly what cryptocurrency is, how it works, and how you can start your cryptocurrency journey. Next, she sits down with voiceover actor and emcee, Devin Finley, to advise him on how to start investing in cryptocurrency.
Before investing in cryptocurrency, it is important to understand exactly what it is, according to Carmen. Carmen explains that, contrary to tradition money, cryptocurrency exists entirely online and is not tied to specific governments. “The main difference between cash and crypto is that the value of cryptocurrencies is not regulated by the government,” says Carmen. “Instead, a network of volunteers regulates value using a shared database called blockchain.”
Blockchain, Carmen explains, is the record of every cryptocurrency transaction. “Records of these transactions are stored and grouped into blocks,” explains Carmen. “The data stored in these blocks is protected by puzzles called cryptograms. Before a block can be added to the blockchain, a user must resolve the cryptogram.
While some people invest in cryptocurrency, others mine it by solving cryptograms. “Solving a cryptogram is not easy and it requires a fairly powerful the computer“, explains Carmen. “But the incentive is that the miner who validates the transaction block first is rewarded with cryptocurrency transaction fees.”
After explaining the basics of cryptocurrency, Carmen sits down with Devin Finley, who is new to cryptocurrency, but interested in getting involved.
“Where can I buy crypto?” Devin asks Carmen, explaining that when it comes to cryptocurrency, he feels like a “fish out of water.”
“So, I’ll just give you a quick breakdown. Bitcoin is like one of the OGs that first appeared on the scene and then you have Ethereum which was kind of the second thing that appeared on the scene,” says Carmen.
While cryptocurrency can be Dearit doesn’t take much investment to get involved, notes Carmen. “Amazingly, you don’t need a lot of money to get started,” she explains. “You can buy Bitcoin with as little as $5. It’s called a Satoshi. This is the smallest amount you can get from Bitcoin.
While cryptocurrency is an exciting investment opportunity, Carmen reminds Devin that because it’s so new, it can be risky. She suggests using an app to do purchases and follow the value of your cryptocurrency as it fluctuates. “Patience is everything, but I will also note that cryptocurrency can be very volatile and can be quite risky,” she explains. “If you want to go buy it, I suggest you download an app where you can actually buy it.”
After chatting with Devin, Carmen shares some final tips for getting involved in the cryptocurrency world. First, she notes that doing your research is extremely important. Before investing in cryptocurrency, she recommends learning about the different types of cryptocurrency as well as the inner workings of the industry.
Next, Carmen recommends that you find the right cryptocurrency for you. “Do you want to go with something like the old standard Bitcoin? Or do you want to start early with the next big thing?” she asks. “Both have pros and cons, so it’s up to you how you want to invest.”
Last but not least, Carmen recommends being patient! “Crypto is a long game. Values constantly go up and down, so it’s best to be patient and watch the Marlet,” she explains. “And always remember that crypto is very volatile and very risky, so proceed with caution.”
Carmen is not a registered investment adviser. The above information does not constitute investment advice and is intended for educational purposes only. Please consult a financial professional to assess which investments are right for you based on your financial goals, needs and risk tolerance.
The post office Get the facts about cryptocurrency in this episode of Getting Rich appeared first on Aware.
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