Learn > Crypto

What is cryptocurrency?

Cryptocurrencies such as Bitcoin are a form of virtual currency which are held on decentralised computer networks (Non-Government controlled basically)

As a result, the currencies are encrypted due to the security of computer networks they are held within.

They are thought to hold a strong future due to the blockchain technology which ensures the integrity of transactions.

Are they safe?

As it has become more mainstream, there are a lot more "safe" ways of storing these virtual currencies, which don't really exist.

There are exchanges (where you can buy and sell) out there, such as Coinbase.com which has over 13 million users exclusively using it for crypto.

Of course, you should always do your own research, but we think it is relatively safe to use sites such as this. In fact, we use Coinbase to hold our cryptocurrencies. If you are unsure which ones to trust, you can find a list of the ones we trust (along with some ways of how to get crypto for free) here.

However, the currency could become worthless...

Is it a fad?

In 2017, Bitcoin reached a high of $17k per coin then dipped all the way down to $7k. This was seen as a bursting bubble by many.

However, as of Jan 21 it reached $30k per coin at a new high with other cryptos following suit.

Nobody can know what will happen with these currencies and it is obviously an investment so carries all of the relevant risks.

It's notable that Citibank put a $300k target price on the coin for December 2021. Whilst it didn’t reach this price target it did end 2021 at $46,000 per coin.

Should you buy?

At current, I am increasing my crypto allocation every single month as I am extremely bullish on the future of cryptocurrency.

However, a lot of the money I have in crypto isn’t my own cash.

This is due to taking advantage of sign-up offers and Coinbase Earn where you get paid up to $200 to learn about crypto. You can find these offers at our page on Free Crypto here.

I would recommend trying this first, seeing how you get on and do A LOT of research before diving into any decisions. As, said above the currency could either go to the highest highs or you could lose all your money so it is important that you weigh up the risks and the rewards.

If you have any questions please drop us an email and we will come back to you as soon as possible.

- Thomas, The Bank Engine