In 2011, when Bitcoin was started, one Bitcoin was worth $1. Now, one Bitcoin is worth $49,224.20. While not everyone may earn that much off the bat, they may at least earn some walking-around money. Learning how finances and the economy work early on will give anyone a head-up in the finance game. Christian Cryder, Boone campus’s Network Systems Analyst, started using cryptocurrency around 2015.
“I didn’t really think much of it back then. I figured it was kind of a fad and didn’t really think I’d be interested in it. You know, it turned out it was pretty legit,” Christian said.
Many types of cryptocurrency exist, but Christian chose to dabble in Bitcoin, Ethereum and Dogecoin. He used Dogecoin for a bit when the value was going up. He and most people thought it was a joke; it was a type of meme currency everyone had. It turned out– while it may not be going up like it used to– it was a legit business and people were and are still buying into it.
“I would almost equate it to a game currency if you’re a gamer. It’s like an online currency; you don’t touch it, you don’t feel it, but it’s there,” he said. For example, in Bitcoin, users have a Bitcoin wallet. It’s similar to an account with another currency in it, but it is never seen. Some people do accept Bitcoin as currency, including Paypal and Cashapp.
Many users take the opportunity to sell their shares.
“People are always looking to convert real currency into Bitcoin, because Bitcoin’s growing, Ethereum is growing,” Christian said. “So people will literally just pay you real money, then you transfer the Bitcoin from your wallet to theirs.”
A user’s account displays their account balance, deals they’ve made from mining, and more. They have the ability to see what you’re being able to mine from on an hourly basis. If, like Christian, users have some experience, they can download investment apps to keep track of investment trends.
Just like any investment, there is a risk of losing money. Therefore, one shouldn’t put in more than they’re willing to lose.
“When I first bought in, you know, I think I bought in for like $100 worth of Bitcoin. And I think by the end of that day, it was worth about $75 worth of Bitcoin, so you can lose money.”
He sold his own Bitcoin and made a profit because he kept track of how much it was worth. He originally invested $100, and added $100 the next month. He sold Bitcoin for around $350, with a $150 profit. With Ethereum, he only made a $20 profit. He recommends reinvesting in the future when the prices go back down. It is hard to predict the trends, but knowing when to get out is important.
Christian plans to continue using Bitcoin in the future.
“When it goes down again, I’ll probably buy back in just for some more potential gains,” Christian said.
For more information about cryptocurrency, check out this Investor Junkie article on how to get started on a cryptocurrency journey. https://investorjunkie.com/alternative-investments/investing-in-cryptocurrency/