A lot of people in the property space have been thinking about cryptocurrencies, so I thought it was about time to address the elephant in the room. I am an expert in property and teaching people how to become financially free via various property strategies; I am not a cryptocurrency expert. Luckily, I know a guy: Marcus de Maria.
Marcus de Maria has made millions in the stock market, property and cryptocurrencies. He has been a mentor to me and got me into cryptocurrency about 4 years ago. He says he isn’t an expert in cryptocurrencies per se, but he is an expert in making money with cryptocurrencies and teaching others to do the same. I sat down with him in my latest video to talk to him about the best approach to start investing into cryptocurrencies as a beginner.
In this article, I will take a look at the basics of cryptocurrencies and how you can get started making money with them.
What Is Bitcoin?
The very first cryptocurrency was Bitcoin. Before Bitcoin, if someone wanted to create a digital currency there needed to be a centralised third-party to keep track of it. This meant that if that third-party couldn’t be trusted or if governments shut them down, you would lose your digital currency. Bitcoin created a way to decentralise this process, meaning that computers all over the world keep track of it. This makes it nearly impossible to shut down. Bitcoin has a set supply of 21 million coins, which are distributed to computers that help secure the network via a process called mining.
Having a limited supply means it can favourably compete with currency produced by central banks. Countries continue to create more currency out of thin air and this creates inflation, meaning the value of each unit of currency goes down over time. Bitcoin, having a fixed supply, is designed to be deflationary. This means that as demand increases for Bitcoin, so does its value.
What Are Altcoins?
Bitcoin is quite large and well known now. It is even legal tender in the nation of El Salvador. You can speculate on the price of bitcoin on PayPal. Elon Musk and Tesla own bitcoin. This wide spread adoption means that the price isn’t likely to go up as much as it has in the past because it requires larger sums of money to move bigger markets. Luckily, there are now other cryptocurrencies; these are known as altcoins. Altcoins perform many different functions, not just alternatives to currency, but they use similar technology to Bitcoin creating differing levels of decentralisation.
As these coins are smaller and less well known than Bitcoin, prices move more aggressively, both up and down. If you know what you are doing, this is where you can take a tiny pot of money and turn it into a big pot. It is also where you can lose everything if you are not educated.
A Warning About Crypto
You can make huge gains in the crypto market if you are educated. If you are uneducated, there are many terrible projects and outright scams that will take your money. Because cryptocurrency is decentralised, often once you have sent your funds somewhere, there is no hope of getting them back. There is no ‘Bitcoin company’ with a customer service email address to ask for a transaction to be reversed. That’s why you need to know what you are doing before you put your money into this market.
Fortunately, I have got Marcus to agree to do a training webinar that will help you get the exact education you need to start making money in the crypto markets. What’s more he’s doing it for free! You can register here. Don’t get left behind by this huge societal change. See you there!
The content of this article is for educational purposes only. It is not financial advice.