How can Cryptocurrency investment be good for Women?
Only 10 to 15% of those now investing in Bitcoin are women, according to estimates. Is a generation of women missing out on this once-in-a-lifetime wealth-building opportunity because of the prevalence of mansplaining around cryptocurrency?
When Bitcoin first appeared on the market, it sounded like something out of a science fiction movie. However, Bitcoin and other digital alternatives to government-issued money are here to stay, and their prices are skyrocketing as they acquire public acceptance and investment.
According to studies, women perform on par with, if not better than, their male counterparts to create returns on investments. And, as more individuals become aware of cryptocurrencies, women must apply their knowledge in this area and consider these assets part of their overall investment strategy. Here’s why you should do it—and how to go about doing it.
What is cryptocurrency anyway?
Bitcoin, the first and most well-known cryptocurrency, was created in 2008 when a still-unknown figure using the pseudonym Satoshi Nakomoto published a now-famous white paper outlining the creation of a new form of currency that was not controlled by any bank or government and was designed for both transactions and as a store of value.
When investors claim they’re “buying Bitcoin,” they’re buying a million Satoshis—think cents to the dollar—and this is what they’re buying. These digital tokens are created by performing complex calculations in a computing process known as “mining.”
New Bitcoins are continuously being mined today, but according to Nakomoto’s plan, only 21 million will ever exist, with the last one likely being produced by the year 2140.
Ethereum is the second-largest cryptocurrency by market capitalization. Still, it is essentially a blockchain-based computing platform that enables developers to create and deploy decentralized apps that power real-world applications like crowdfunding and small business financing. Also popular is Lite Coin, an “alt-coin” that is theoretically comparable to Bitcoin but has a considerably lesser market share.
Who else is on board and why?
Institutional usage of digital currencies, particularly Bitcoin, is rapidly increasing. Tesla changed $1.5 billion of its balance sheet into Bitcoin in January and will soon accept Bitcoin as payment for vehicle purchases. Square, a payment processor, and MicroStrategy, a business intelligence software company, are two more prominent corporations that have made significant investments in Bitcoin.
One of the reasons businesses are looking at digital currencies is that they’re proving to be a valuable store of value, as they’re both rare and profitable than gold.
Because of its finite nature and rising demand, Bitcoin has become the highest performing asset of the last decade.
How to start Investing?
The growth of easy-to-use consumer apps that allow consumers to invest with the touch of a button is fueling the present momentum in the cryptocurrency market rather than giant corporations’ efforts.
Users can invest anywhere from $5 to $50,000 in Bitcoin and other new cryptocurrency and blockchain technologies using apps like Paypal, Cash App, Celsius, and Voyager.
Stacking sats or buying tiny amounts of Bitcoin daily, weekly, or monthly is a popular and safe technique among individual investors. Because of Bitcoin’s extraordinary price volatility, the market price changes by the second. People can average the price and avoid buying at peak prices by spreading their overall investment over the broadest time horizon possible.
What are the Risks Involved?
Even if you invest conservatively, there are still risks to be aware of.
Unlike other forms of assets, bitcoin buyers want a secure storage facility. A private key protects each “wallet,” a complex technology that allows you to access your money while preventing illegal access. Consider this the most critical password you’ll ever create — just ask the man who forgot his password to access his $385 million worth of Bitcoin.
“If you’re alive today, you’re living through a global financial development that’s changing the way humans invest,” said Tiffany Madison, an entrepreneur and early adopter of cryptocurrencies in Austin, Texas, who’s been active in the business since 2014. Madison has witnessed the community transform from a boys’ club to a welcoming, diverse group of investors. She is committed to ensuring that women are included in this financial revolution.
Madison, a single mother, raised with tenacious budgeting skills, pointed out that technology that democratized wealth-building for the working middle class didn’t exist even five years ago.
“These once-in-a-lifetime chances empower and enable clever women to generate intergenerational wealth in previously unimaginable ways,” Madison added. “An opportunity like this would never occur to my mother’s generation.” So now is the time for our generation to seize the opportunity.