Referred to as the money of the future, cryptocurrency has been blowing up on the financial scene for the last several years. While it’s not necessarily new, it has gained increasing notoriety and a loyal flocking of investors both novice and experienced. If the term cryptocurrency sounds more like a villain out of a sci fi film than a type of money, you may be more familiar with the first and most popular form of digital currency, bitcoin. Back in 2008, Satoshi Nakamoto created the digital currency as a way for peers to exchange funds that were not linked to a central banking system. While the actual process of trading, purchasing, and cashing out bitcoins and other digital currency is complex and technical, the ability to actually do so is now more accessible with platforms like Coinbase.
What is Coinbase?
When buying and selling cryptocurrency like bitcoins, your transactions are recorded on an intricate system called the blockchain. Once a transaction is complete and no longer pending, it is added to the blockchain forever and cannot be changed, altered, or reversed. The issue is, the average college student that isn’t the next up and coming Steve Jobs doesn’t have a clue how to get near a blockchain system. It can be confusing and dense to figure out how exactly it all works if you don’t have extensive experience in the tech or financial field. However, with platforms like Coinbase, jumping on the bitcoin and cryptocurrency investing trend while it’s still hot is possible (no pHD required).
Coinbase is a digital currency wallet where users can easily purchase, sell, and monitor their cryptocurrency like bitcoins, ethereum, and litecoin. The creators of the platform wanted to offer a simplified option for people that were interested in dabbling in investing in cryptocurrency without learning the entire process from start to finish. The interface of the platform purposely resembles many other online banking and funds sharing websites such as PayPal to make the learning curve that much easier.
How Does Coinbase Work?
Coinbase makes buying, selling, and storing your bitcoins and other cryptocurrency simple. When you purchase digital currency, you need a place to store it. Coinbase provides a digital wallet that can be linked to your traditional bank account, credit card, or debit card for easier transfers. Once you’ve signed up for an account and linked your bank, you are ready to start purchasing digital currency. After you initiate the purchase of digital currency, Coinbase will take your request and secure your bitcoin, litecoin, or ethereum by acting as your broker in a sense. Once the sale is confirmed and added to the blockchain, your cryptocurrency is delivered to you within a few days. From there, you can watch your digital currency gain value over time. You can decide to transfer your bitcoins, litecoins, or ethereum back into USD via the platform, through your bank account or allow it to gain value and remain in your digital wallet where it is secure. There are fees associated with transfers that vary depending on the amount and where the transfer is going.
Coinbase takes their customer’s privacy and financial security serious. With a relatively newer type of currency like cryptocurrency, the system of how it works is forever evolving, developing, and changing. Many countries are not sure how to label bitcoins and litecoins as the funds are challenging to trace and the digital currency is not a legal tender as of yet. With those factors considered as well as overall security and privacy, Coinbase secures 98% of customer information offline using USB drives and paper backups stored in safety deposits around the country.
Why Should You Invest In Digital Currency?
As a college student that doesn’t have the luxury of flippantly spending money, investing your cash can feel like a risky move. However, the digital currency craze has gained such popularity over the last 10 years among investors across the spectrum of experience for good reason. Digital currency is not controlled by a central bank which means if the banks go down tomorrow, your bitcoins will be perfectly fine. While cryptocurrency is susceptible to value fluctuation that can vary wildly, this can work in your benefit as well. Many novice investors are finding that they can purchase cryptocurrency when the price is low and cash out when the value is high for an optimum profit. Since last year, the value of popular cryptocurrency like bitcoins has been steadily on the rise making each coin purchased that much more profitable. This is good news if you are interested in investing in the digital currency trend. You can invest a college budget friendly amount of money and potentially receive a larger return. You can also allocate a certain amount of funds monthly to your Coinbase account to purchase digital currency and allow it to sit and grow overtime. Like with any other investment decision, you should continue to do your research and weigh the possible risks against the possible gains and never invest more than you can comfortably.
Investing in college can be one of those topics you hold off until you’re “ready” because it seems intimidating. Platforms like Coinbase allow you to invest with smaller amounts of money safely to lower your risks of losing funds you need. If you have questions about Coinbase or how cryptocurrency works, the helpful staff can guide you through the process from start to finish.
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