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Does it feel like everyone is talking about cryptocurrency right now? Yes. Do you have any idea what they’re talking about? If you’re being honest, chances are probably not.
But that’s okay because it’s never too late to learn. While cryptocurrency certainly grew in popularity over the last few years, it’s still fairly new and there are still plenty of opportunities for newbies to get caught up and involved.
To help get you started on a few crypto basics, read on below for the answers to two critical questions: What is cryptocurrency and should you have some?
What Is Cryptocurrency?
Let’s start with the popular phrase spoken in classrooms around the world: There is no such thing as a dumb question. So, if you’re thinking, “Is crypto, like, a real thing I can touch and hold?” don’t be ashamed. It’s a fair question. Just so everyone is all clear, cryptocurrency isn’t money that you can hold in your hand like a dollar or a quarter. Rather, it’s a totally digital form of currency that you can track when you have an account with an online platform or broker that offers cryptocurrency trading.
With that out of the way, let’s get into some of the different kinds of cryptocurrencies. “The two most popular types of crypto are Bitcoin and Ethereum,” explains Brian Baker, an investing reporter at Bankrate. “There are many others as well, like Tether, Cardano and even Dogecoin which started as a joke,” he adds.
From that list, Bitcoin probably sticks out. That’s because it was one of the first cryptocurrencies introduced and is now one of the most popular. “One of the reasons Bitcoin has gotten so much attention is because the price has increased an enormous amount. Any time that happens, it’s going to get a lot of attention,” Baker explains.
Bakers goes on to say that many governments are skeptical of cryptocurrency, due in part to its connection to illegal activities. Because of this, it’s not all that likely that cryptocurrency will replace traditional payment methods any time soon.
That said, crypto is a really popular investing approach right now. “For a lot of people crypto is a trading vehicle,” Baker explains. “There’s been a huge amount of price appreciation in Bitcoin and other…