Cryptocurrency — Is It Safe?
When people hear the word “cryptocurrency,” some may associate it with cybercriminals and unscrupulous activity. But is using cryptocurrency actually safe? Let’s take a look at several common concerns to answer that question. IS CRYPTOCURRENCY SECURE? If you put your money into a bank insured by the Federal Deposit Insurance Corporation (FDIC), you know your money is safe (unless something extremely drastic happens to the economy). However, if you put your money into cryptocurrency, you might wonder if it’s secure or whether hackers can take it from you. Luckily, the blockchain technology of cryptocurrency records every single transaction as timestamped “blocks” in a digital ledger. Additionally, every transaction requires a two-factor authentication process. It’s a complex, technical process, but it makes cryptocurrencies extremely difficult to tamper with, especially the biggest currencies like Bitcoin or Ether.
If you’re considering putting most of your funds into cryptocurrency to use like a checking account, however, it may not be the best decision. The market fluctuates dramatically, even if the values have, overall, risen to enormous highs over the past few years. IS CRYPTOCURRENCY SAFE TO INVEST IN? As a newly created market, cryptocurrency is still fairly volatile in the eyes of financial experts. However, that doesn’t mean it’s a bad idea to invest or play the market. Just make sure to keep your cryptocurrency portfolio diversified, and don’t invest too deeply in one currency over another. Research the cryptocurrency exchange you plan to use. Never invest more than you’re willing to lose, and try to talk with experienced crypto investors to gain their tips and insights. By utilizing this knowledge, you can use crypto thoughtfully and safely, and you’ll have some insights to share when people ask you the same questions. continue to get checks in the mail. Some people are investing time and money to improve themselves so they can find a vocation or job for the long term, while many businesses can’t seem to find people who want to work and, unfortunately, have to shut their business down for lack of employees. It used to be if you had the money, you could buy about anything you wanted, but in today’s world, even if you have the money, there is a good chance the item you want is not available or won’t be available for months or possibly years. 2021 has taught us that we can do without many things, including in-person customer service. Instead, we have learned how to buy and sell things without having to talk to a real person. (I’m sure this may be more efficient, but I miss the opportunity to talk to a real person, not artificial intelligence.) We have learned to eat in our vehicles or at home with food delivered to us or left on the doorstep. Yes, a lot has changed over the last 12 months. But one thing has not changed, and that is, even through all the chaos and unknowns we may face going forward, people like people, and we like to have a personal relationship with others. The world can create all of these things that are supposed to make our lives better and safer, but people still need and want personal relationships so we can enjoy each other.
Not all cryptocurrencies are “unhackable,” however. In 2018, hackers robbed Coincheck investors of nearly $534 million.
IS CRYPTOCURRENCY SAFE TO USE? Currently, it’s perfectly legal to buy and sell with cryptocurrencies. In fact, if you use a crypto exchange like Gemini, many big-box merchants have partnered to trade and sell their goods for cryptocurrencies like Bitcoin. 2021: A Year in Reflection As we near the end of 2021, we can now reflect on what a year it has been. This is not to say it has been a bad year or a good year, but I view it as a year of transition. By transition, I am referring to the many different things that came into play during 2021. We partially came out of a pandemic. I say “partially” because, in some places, you still need to where a mask, and in others, you don’t. Some people have been vaccinated by choice, and others are forced to be vaccinated in order to keep their jobs. Then we have those who don’t have a job but
To that, I say Merry Christmas to everyone, and may we all enjoy each other and continue to look forward to another wonderful year in 2022.
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