Have you ever been tired of converting currencies when making international transactions? I have, and that’s why digital money is truly attractive. It allows you to pay in the US, Australia, the UK, or Japan without worrying about exchange rates.

But the big question is: is digital currency reliable? And more importantly, does it have the potential to become a widely used means of payment worldwide? I will help you better understand the world of digital money and why now is a good time to get started.

Digital currency, also known as cryptocurrencies, are encrypted coins stored in electronic wallets. The great thing is you don’t have to worry about losing or being robbed because the money is stored on a global network system. Even if you lose your phone, you can still recover your funds. Currently, there are over 5,000 different cryptocurrencies, but Bitcoin remains king — it’s the most famous and widely used. All other types are called Altcoins.

Talking about Bitcoin and Altcoins, these are two basic concepts you need to grasp. Bitcoin was created in 2009 and opened up a whole world of digital money. Since then, a series of altcoins have emerged based on Bitcoin’s code but with improvements in transaction performance and security. Ethereum and Litecoin are typical examples. However, no matter how good altcoins are, Bitcoin still leads in market capitalization. Currently, Bitcoin’s market cap is four times higher than Ethereum — the second-largest altcoin. This shows that Bitcoin remains the gold standard in the digital currency world.

So why invest in altcoins if Bitcoin is still number one? You can think of it like investing in stocks. If Bitcoin is gold, then altcoins are like shares of different companies. You invest in altcoins to increase the amount of Bitcoin you hold, similar to investing in stocks to grow cash. The 2017-2018 period is clear evidence — at that time, some altcoins increased tenfold or twentyfold in a very short time. The LTC/BTC pair once surged 150% in just two months, and TRX/BTC also increased nearly 100%. That’s a level of volatility rarely seen in traditional stock markets.

But it must also be acknowledged that altcoins are more susceptible to manipulation because of their smaller market caps. If you are an inexperienced trader, this could be a problem. But if you choose good altcoins and invest long-term, there’s no need to worry too much. Ethereum, Litecoin, and Bitcoin Cash are safer options if you want to start.

The question is: should you invest in digital currency? If you’ve paid off your debts, have an emergency fund covering 3-6 months, and have invested 15% of your income in stocks with some money left over, then yes, you can consider it. Technology is the future, and digital money is part of it. Moreover, the number of people interested in digital currency is increasing. Trading volume on exchanges has surged, indicating the market is growing.

There are two main ways to invest in digital currency. The first is holding coins — buying and holding long-term with the expectation that prices will rise over time. It’s like buying gold. The second is trading coins — derivatives trading, where you predict the trend of price increases or decreases to profit from short-term fluctuations.

Holding coins has the advantage of lower risk of losing capital, fewer trading costs, but requires a larger initial capital. Trading coins, on the other hand, involves lower initial capital, high liquidity, and the potential for quick profits using leverage. But the danger is you could also lose your entire capital in a single trade if you’re not careful.

Currently, many exchanges offer leveraged trading services. The process is usually very simple: open an account, deposit margin, and start trading. The current BTC price is about $77.59k (up 1.09% in 24 hours), ETH is $2.13k (up 0.88%), DOGE is $0.10 (down 0.24%). These figures show the market is still active and lively.

In summary, digital currency is not a get-rich-quick scheme, but it’s an asset worth considering if you believe in the future of technology. Whether you choose to hold or trade coins, start by learning thoroughly and only invest what you can afford to lose.