CINCINNATI (WKRC) – Cryptocurrency has become rather common place in financial discussions. From Bitcoin to NFTs, we hear about it almost every day. But do you fully understand it? Independent financial advisor Rob De Lessio of Strategic Wealth Designers discussed Bitcoin, a type of cryptocurrency.
“Cryptocurrency is decentralized,” De Lessio says. “This means it is not governed by any entity and no one is regulating it. You can make anonymous transactions using Bitcoin. This is different than the money you use because your money is backed by the Federal Reserve.”
As a digital currency, it is bought and sold online through a cryptocurrency exchange. You can download an app on your phone to purchase Bitcoin or another cryptocurrency. The most popular exchange is Coinbase.
“Cryptocurrency is stored in a digital wallet,” De Lessio says. “It can be stored in a cloud or hard drive. It is important to remember your password because if you don’t, your money can be gone forever. Since cryptocurrency is so volatile, it is not a safe investment.”
Understanding cryptocurrency is important to decide if it is a good investment for you. To see additional stories surrounding business and economic news for the Cincinnati area, visit here and if you have a question for De Lessio send an email to firstname.lastname@example.org.