what's up everybody.
the topic on every investors mind but what the heck is cryptocurrency and how can you make some money on it.
well let's start from the beginning...
cryptocurrency was first created in 2009 by a guy named Satoshi Nakamoto when he created Bitcoin with just a type of cryptocurrency you can think of cryptocurrency and Bitcoin like digital money that you can exchange with someone anywhere in the world without restrictions or borders before if he had US dollars and he wanted to buy shoes from somebody in India you would have to take your US dollars go to the bank and exchange these for Indian rupees then you can take these new dollars and go buy your shoes but that's kind of an indirect process yeah apps like PayPal and credit cards help but the amount of rupees that one dollar can buy is changing pretty much every second why is the value of our fiat money changing well private entities like the Federal Reserve and our government both play a part in manipulating the value of our dollars through lots and lots of it I already made a video where I talked about well many years and how this works so if you want to check that out I'll put a link to it in the caption below the goal with cryptocurrency is to create a decentralized worldwide digital currency that you can't say that five times fast decentralized worldwide digital currency decentralized worldwide digital currency decentralized worldwide digital currency disorder a decentralized worldwide digital currency means that crypto currency like Bitcoin does not rely on banks the government or any private entity like the Federal Reserve to exist so now you can buy things and exchange money from anyone anywhere in the world without worrying about exchange rates or banks or borders and you can't just create more cryptocurrency to change the value of it like how the Federal Reserve or the Fed can just print more money let's take a look at Bitcoin for example more Bitcoin can't just be created it has to be mined using a whole bunch of complex computer algorithms but there's a limit to how much Bitcoin we can mine we can only have a total of 21 million bitcoins in existence once you hit that number you will not be able to create or mind anymore bitcoins the mining process is pretty complicated but what you need to understand is that there's a limit to how much cryptocurrency can be created and there's currently no way to exceed that limit this way you can devalue cryptocurrency the same way you can are paper dollars by just printing a whole bunch of it there's a handful of different crypto currencies out there like Bitcoin aetherium and litecoin which all have their own properties but they all follow most of the basic cryptocurrency principles except aetherium because when etherium was created the founders did not put a cap on how much etherium could be created so these are reasons why people are huge fans of crypto but what's the downside well for one a lot of places and people don't accept cryptocurrency yet this is starting to change but you still can't necessarily rely on Bitcoin to buy you toilet paper when you go to your local grocery store now this is purely speculation but if Amazon was to start accepting Bitcoin as a means of payment you can imagine that cryptocurrency and Bitcoin second because cryptocurrency is such a new asset class it's very very volatile that means if you're trading it you can make a whole lot of money very quickly and that also means that you can lose your money just as quickly and third and maybe the most important is that the rise in cryptocurrency would ultimately mean the decline in big banks and the government let's just say hypothetically the cryptocurrency continues to grow in popularity so people start to use less dollars or they stop using dollars completely that would mean that big banks and the government will lose their control they were losing profits and they would lose their power so you'd have to think that they will be very receptive to the whole cryptocurrency movement what can they do exactly well it's kind of unclear they might try to ban certain exchanges or create more regulations which is already why a lot of foreign exchange brokers don't allow us clients we just saw this happen in China because the Chinese government is worried about the rise in crypto currency so they announced that they'll be trying to ban crypto currency exchanges so this is one of those things where you really don't know what could happen we know that they're gonna do what they can to fight the cryptocurrency movement but to what extent will it work we really don't know so now that we have the back information there are two ways you can make money with cryptocurrency first you can trade and invest in crypto currencies like Bitcoin I do have to tell you you're never guaranteed to make money when you invest your money you might even lose money so you should always speak to a professional in your area so you understand all the local laws and regulations that govern investing trading crypto currencies is kind of like trading other currencies in the foreign exchange market you'd buy o crypto currency like Bitcoin and then hope that its value goes up so you can sell it and make a profit but remember what I said earlier the crypto market is very volatile so that means if you're a trader you can try to trade on some of these swings or if you believe that bitcoin is the future you should be focusing on the long term if you want to trade or invest in crypto currencies like Bitcoin you have to find an exchange that allows you to trade cryptocurrencies one of the most popular cryptocurrency exchanges is coinbase is free to create an account and if you sign up using our affiliate link in the caption below you'll get $10 worth of Bitcoin for free just for investing $100 in Bitcoin so if you want to learn more I've got a link to
Coinbase Bitcoin Wallet
the second thing you can do is be the bank remember there are no big banks that control cryptocurrency or Bitcoin but there are businesses and people that rely on cryptocurrency as the currency of choice and they need access to more so you can be a Bitcoin lender essentially what you would do is find somebody who's looking for Bitcoin to fund their business then you would loan that borrow or Bitcoin and they would pay you interest until that loan is paid off and unlike most bank loans these Bitcoin loans tend to have a shorter term they're typically between six months and two years long farmers like this method because now they don't have to go through a bank and they can work with investors anywhere in the world and investors like you can benefit from this because you can make money by charging interest on your loan the interest rates on your loan are usually pretty high to cover your risk I mean I was seeing people willing to pay twenty five or twenty eight percent Interest a year on their bitcoin loans now I'll be completely honest this isn't something that I've done but it's a unique way to get involved with cryptocurrency the best way to do this lending would be by going through a lending platform that focuses on small business loans so you can see if these businesses can support your loan one example is bit bond you can create an account for free and then you can search their database for business owners that are looking for bitcoin loans you can see what kind of money they're making how big of a loan they want to take out how much interest they want to pay and what they want to use this load for then if you want to invest you can find a portion of the loan or you can fund the whole thing so you can invest .
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