Cryptocurrency. Lots of people have heard of it but have no idea what it is.
What I learned today is that the technology behind it is complex. It is best known for its use as digital money.
“People all over the world use it for transactions to buy goods and services,” said DeSales University economics professor Tahareh Hojjat.
Real money can be put in a bank like real cash, but with cryptocurrency, “When you buy cryptocurrencies, you become your own bank and the things we don’t think about protect our assets.” said Lehigh University finance professor Donald Bowen.
Hackers have stolen thousands or even millions of dollars from investors in the past.
Just this week, Venmo announced that its 70 million customers can now buy three different cryptos – Bitcoin, Ethereum and Litecoin for just $ 1.
There are even in-app guides for investors.
“It’s very simple. I download PayPal and you can buy and sell Bitcoin through PayPal. It’s not difficult,” said Hojjat.
But be prepared.
“As with all new technologies, there will be a period of time when we will figure out how the technologies will be used, so some cryptocurrencies we will find out are worthless and some could become very valuable,” Bowen said.
As crypto nears mainstream adoption, do your research and assess your individual risk.
Overall, Bowen says now might not be the time to dive headfirst.
“I don’t think investing in cryptocurrency is right for most people right now,” Bowen said.
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