Before starting to learn – what is a digital currency anyway? Digital currencies, as their name implies, are virtual currencies that are used through digital means. It can be internet on a computer, smartphone or dedicated devices. We learn about all the currencies and the technologies that enable their use in the digital currency investment course.
Digital currencies explained
There are several names for digital currencies. They are also called virtual currencies or crypto currencies, and the term in Hebrew is decentralized currencies. Although Bitcoin was the first currency to use this technology, it is no longer the only one. Crypto is an abbreviation of cryptographic currencies, that is, encrypted currencies whose value, security and in some cases their creation is done by the users without a political body or a bank that supervises (read more: what is crypto). There are other names for courses in digital currency trading, for example a crypto or blockchain course – the technology used to trade most digital currencies.
By extension, a digital currency is a global, intangible currency that can be purchased or invested in by digital means, such as a computer, digital wallet, phone and can be stored on a computer, hardware or just by storing the code.
A digital or virtual currency is, as mentioned, more secure and requires authorization as well as the approval of the users. As we will explain later and in the course, the digital currency today has no state or bank supervision, so it is more volatile but also more immune to inflation.
Another advantage of the digital currency is that you can use it from anywhere in the world and trade without a problem. And if you have, for example, Bitcoin or Ethereum, you can purchase or invest directly abroad without conversion and without conversion fees.
The advantages of the digital currency
OK, now we understand what a digital currency is, but why is it good? Digital currencies have several advantages. We often hear about them as an alternative investment channel to the capital market or even to real estate. Due to the lack of supervision, they are more volatile and as always with volatile investments, the return potential is high but so are the losses and to avoid them you need to study the dangers well, something we specialize in at Epik.
Here are some of the benefits:
They can be traded anywhere on Earth
Today there are already many technologies that allow them to be easily converted
The level of transparency in digital currencies is extremely high and it is possible to track their activity
The level of encryption is very high and this is important for the preservation of the property
The fees are very low
No need to carry movables
What is a titular digital currency? Phone picture
What are digital currencies?
We understood what a digital currency is, but what are digital currencies actually? Everyone knows Bitcoin, but it has not been the only digital currency on the market for a long time. Other major coins are Ethereum, Ripple and Binance, which is also used as a trading platform. Other coins are Dogecoin and Cardano.
New digital currencies
There used to be very few digital currencies. Today, digital currencies are created every moment. As of the writing of these lines, more than ten new digital currencies have been tracked just today. One of them, a coin called Robin Hood, achieved a 9% return within an hour. Unfortunately that doesn’t mean much. Most new digital currencies will not survive.
Today, as in any emerging market, different countries intervene and establish new rules. For example, China this year restricted the trade and use of digital currencies and Bitcoin was also affected by the regulation.
Other problems that people encounter is forgetting a password, which can result in the loss of millions of dollars. And like anywhere there is money, hackers also join. The problem is more serious with new digital currencies, which we don’t yet have background on, their security and of course they still don’t have a chain of successes.
This does not mean that every new digital currency is problematic. But it does mean that you have to study the field, understand which digital currency is valuable, which digital currency is sold at a good price, which new digital currency is here to stay. All this needs to be learned. Among other things, this is what our course for investing in digital currencies is designed for.
Investment in digital currencies
You have already understood what a digital currency is and what it is used for. Let’s make some order in the mess: digital currency can be used for buying or investing. As in the stock market and the capital market, you can invest for the long term and you can invest in day trading. It is an investment with lots of opportunities but also with risks, especially these days when it is not clear what the direction of the regulation will be. But risks can also be dealt with. You also don’t put all your money in one basket, certainly for those who don’t have many alternatives.
It is possible to diversify the investments in several digital currencies alongside investment studies in the capital market. Every investor has their own needs. There are also assets that yield better returns in times of crisis, when investors are looking for an alternative to the capital market. An excellent example of this is the returns of the digital currencies at the beginning of the Corona crisis. But that’s really just the tip of the iceberg.