Cryptocurrency is making strides as a legitimized form of investment and payment as more retailers accept it and federal officials look to regulate it. It’s a hot topic of discussion but the world of digital currency is still not widely understood.
It’s become so mainstream that President Joe Biden recently signed an executive order calling for oversight of its risks and benefits.
But what exactly is cryptocurrency, and how do you use it? How do you avoid losing out on your investments? But first, how do you even get started?
Getting started
Financial advisor John McKean, of Comprehensive Advisor in Carlsbad, said: “the consumer would start with opening up an account at Crypto.com, (a cryptocurrency exchange) and they would fund that utilizing everyday dollars. Typically, you would use a electronic transactions to buy or purchase goods and in this case, you might use Apple Pay or one of the other apps that they use to be able to use these types of transactions.”
The thing that we have to understand is that it’s (cryptocurrency) is unregulated
John McKean , financial advisor,
Comprehensive Advisor
McKean said investors would then put money into an account and “use that money…to purchase things such as Bitcoin and Ethereum and Dogecoin and all these different various cryptocurrencies. The thing that we have to understand is that it’s unregulated, though, and so there’s no FDIC (Federal Deposit Insurance Corporation).”
FDIC insures deposits. It examines and supervises financial institutions for safety, soundness and consumer protection.
What you can do with cryptocurrency
The list of what you can do with cryptocurrency like Bitcoin or Ethereum is growing.
San Diego State University (SDSU) recently accepted a huge bitcoin donation valued at $25,000 at the time. It now encourages crypto donations.
Investors can also buy cars like a Tesla, whose owner, Elon Musk, a big proponent of Bitcoin.
Even everyday goods and services like coffee…
