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Decrypting Crypto: Getting started with cryptocurrency

This week, KWTX is taking a look at all things cryptocurrency, starting with what exactly the term means.
Published: Jan. 24, 2022 at 5:49 AM CST
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WACO, Texas (KWTX) - You might have heard the term cryptocurrency, or Bitcoin, but what exactly does that mean, and how can you get started with it?

Cryptocurrency is decentralized financial medium, not connected to any country. Dr. Rob Tennant, an accounting professor at Texas A&M University Central Texas, said that’s different than most other money, like the dollar or euro.

You can use cryptocurrency to pay for goods and services, and some businesses have started accepting different forms, like Microsoft and PayPal.

However, many people are investing in cryptocurrency, like you would a stock.

Dr. Tennant said it’s fairly easy to purchase bitcoin or another type of cryptocurrency—all you need to do is download an app.

“Whether it be Coinbase or Robinhood or one of the many others available on the internet, you can choose to download the app, fund your account, just like you would a traditional stock account,” Dr. Tennant said. “When you get to the price and the currency that you want to purchase, you can you can purchase whatever your dollars or euros whatever currency you have, will afford you at that time.”

Dr. Tennant said the value of cryptocurrency changes frequently, sometimes by thousands of dollars.

As of Monday morning, one Bitcoin is worth $33,615, according to CoinDesk. Last week, one Bitcoin was worth around $38,000.

“In the last two years, what they found is that the price of crypto seems to be tied to the value of tech stocks, not because there is a causal link to it, but they seem to move in a similar direction,” Dr. Tennant said.

He said cryptocurrency can be a good investment, but it’s risky. If you choose to invest in cryptocurrency, Dr. Tennant recommends only investing money you can afford to lose.

FIND OUR OTHER STORIES ABOUT CRYPTOCURRENCY BELOW:

How bitcoin is mined

Making money and filing taxes

Local investor takes the plunge

Bitcoin ATMs popping up around Central Texas

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