11 Things to Consider Before Investing in Cryptocurrency in 2021

Where cryptocurrencies were once the reserve of tech nerds, these days, they've become so mainstream that your parents might be considering investing.

Here are 11 things that everyone should know before investing in Bitcoin and other cryptocurrencies, all updated for the crypto landscape of 2021.

 In a nutshell, blockchain is the infrastructure that supports cryptocurrencies. It's also decentralized, therefore offering an alternative to the traditional, centralized financial institutions.

1.They're Based on Blockchain Technology

The smallest of these is a Satoshi (named after Bitcoin's founder, Satoshi Nakamoto), worth 0.00000001 of one Bitcoin. A few other units, including the millibitcoins (0.001  of one Bitcoin) and microbitcoins (0.000001 of one Bitcoin).

2.You can Break Them up into Smaller Piece

For an asset to be valuable, it must be scarce — or at least difficult to obtain. The supply of Bitcoin is 21 million, with the number still available to mine decreasing each day.

3.There's a Limited Supply

When we deposit money into an account with a financial institution, the bank knows exactly who we are. The same isn't true when you're investing in cryptocurrency.

4.Use Them Anonymously