Here’s an astonishing statistic: About 57 million people are expected to buy cryptocurrency next year. Despite the fact that more than 20 percent of Americans have never owned crypto, this activity is estimated.
At the same time, according to a new study, a big obstacle preventing people from buying cryptocurrency is not understanding it. In fact, almost one in four Americans don’t understand cryptocurrency at all.
Ascent surveyed 2,000 American adults in May 2021 and asked them if they understood blockchain, where they got information about cryptocurrency, and what tools they used to invest in crypto between inquiries.
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So, what is cryptocurrency? Basically, it is a digital currency and an asset class. It can be used to purchase goods and services globally. Well-known cryptocurrencies include Bitcoin, Dogecoin, and Ether. High-profile investors reportedly include the likes of Tesla CEO Elon Musk and rapper Snoop Dogg.
In recent days, Dogecoin and Bitcoin have experienced declines in value for a variety of reasons, taking a huge hit across the industry. CoinMarketCap.com announced that the crypto money market lost $ 500 billion of value, from $ 2.5 trillion to $ 2.02 trillion.
Matt Frankel, a certified financial planner at The Ascent, told Black Enterprise via email that cryptocurrencies are digital assets that are not regulated or issued by any central bank or authority, unlike fiat currencies such as the US dollar. Other key findings from The Ascent study include:
1. About 57% of Americans believe that those who do not invest in cryptocurrency can still make a profit.
2. More than 51% of Americans who own cryptocurrency have bought it for the first time in the last 12 months.
About 41% of Americans consider getting some of their salaries in cryptocurrency, while the other 31% consider getting all their salaries in cryptocurrency.
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4. Nearly two-thirds (65%) of Americans would consider signing up for a credit card that offers rewards and cash back in crypto.
5. Coinbase is the leading exchange: 67% of American adults who own or own cryptocurrency have used it. More than 28 percent of those surveyed did not use another exchange.
Reflecting on the pros and cons, Frankel says that the use cases of cryptocurrencies are both a payment method and a store of value. Cryptocurrencies can be used to pay for goods and services at merchants who accept them, and since most of them — especially Bitcoin — have a limited supply, they are often referred to as “digital gold.” He added that the disadvantages are that cryptocurrencies have not been widely adopted for real-world use and prices are extremely unstable.
Along these lines, is now a good time to buy crypto? Frankel claims that there is absolutely no way to know what the price of any cryptocurrency will do in the future. Trying to time the price of any asset rarely works well. “If you think cryptocurrency is something you want to dive into, the best way to approach it is to build your position in smaller increments over time, rather than buying it all at once.”
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He pointed out that 20 percent of people who don’t have cryptocurrency stay on the sidelines because they don’t understand how to buy it. But Frankel says that buying Bitcoin and other cryptocurrencies may be easier than you think.
“You can buy Bitcoin through platforms like Cash App and Venmo, and if you want different cryptocurrencies, it’s a completely secure and user-friendly way to buy from a reputable US-based cryptocurrency exchange like Coinbase or Gemini.”
Other personal finance experts advise people not to buy or invest in more crypto than they can afford to lose. They say it would be good for investors to take this into account because the market can be volatile and unpredictable. They note that while the cryptocurrency has made solid gains, it has also experienced major declines.
Observers recommend that potential buyers do their homework and extensive research to become more aware of crypto’s potential risks. purchase.
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