Cryptocurrency Explained: What Teens Should Know About Bitcoin and Ethereum

At some point you might have heard of people discussing Bitcoin and Ethereum and these seemed to have gained currency and popularity. It features in the reels of influencers, talks of financial wizards and in the magic tales of overnight success. The phenomenon holds a mysterious allure, a romantic thrill.

 Dubbed as one of the most wonderful concepts of modern currency and finance, it becomes vital for the growing teen of today to understand it. So you should as you navigate through this blog come to an informed decision about investing in the same. 

What do we understand by Cryptocurrency? 

In simple terms it is digital currency and does not exist as paper notes or coins. On the contrary, it exists in blockchain, which is a safe and secure online mode that and keeps all transactions public and transparent. 

Further, it is not controlled by banks or governments but derives its power by users all over the world. Spares the hassle of bank transactions, bank fee and stalking money in wallets, purses. 

Bitcoin and Ethereum are the most popular forms of cryptocurrency. While  Bitcoin is generally seen as a valuable asset such as digital gold and Ethereum derives its power through app functionality. 

Why are they popular? 

There are reasons why this has stormed into our lives and conversations: 

• Primarily decentralised hence within your power, without the mediation of a bank. 

• Has global currency and anyone with internet facility can use it.

• The supply is limited, hence it is more valued. 

• Faster transaction. Can be sent in seconds. 

Sounds great? 

Words of caution

Before joining the race for owning cryptocurrency, wait and absorb a few points. You must understand that this is still in its growing stages and so not everything is all gold and shine. Some points to ponder

• It is highly unpredictable and subject to changes. A coin can touch the sky in a week and then drop dramatically into the pits. 

• Highly susceptible for fraud. As there are thousands of fake tokens circulating, you can fall into a net of deception.

• Suspect legitimacy: as many governments are trying to find ways to control the phenomenon, what passes today as acceptable might change tomorrow.

• Risky. Should you lose your crypto password or are hacked, there is no help to turn to. The money is gone forever. 

So as a teen, it would be better to understand and study the phenomenon. 

Ways to learn

You can know more about the currency by 

• Reading guides for beginners from authentic sources

• Follow the genuine presences in the field and not get carried by hypes

• Begin by learning at mock trading sites to know fully without risking your all. 

• Seek knowledge from experts, from various online courses offered by Khan Academy or Udemy, and ask on forums to clear all doubts

Remember its new and everyone is learning. So, do not be overwhelmed and stay curious. 

Finally, should you invest as yet? 

Maybe not yet. You need a mature guidance. Though most exchanges would not let you interact or open an account till you are 18. You must understand the nitty gritty of the phenomenon, understand the market before you invest so that you can protect your assets. 

It is a powerful and radical innovations today but realize it is not a quick way to make money. You must first understand and be mature to use it. 

So, learn now. Ask questions and read on it. Even if you do not invest today, the technology that shaped it will define our future.

Understanding so is the real knowledge and value for money.