What is Cryptocurrency: A Guide for ACU Members

Cryptocurrency has become a buzzword in the financial world, but many people still find it confusing and intimidating. As your trusted financial partner, America’s Credit Union (ACU) is here to help you navigate this complex topic. Our goal is to provide you with clear, accurate information about cryptocurrency, so you can make informed decisions about your financial future.

What is Cryptocurrency?

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology. This means transactions are verified and recorded by a network of computers, rather than a central authority.

How Does Cryptocurrency Work?

At its core, cryptocurrency transactions are recorded on a public ledger called a blockchain. Each transaction is verified by network participants (known as miners) and added to a chain of previous transactions, creating a secure and unchangeable record. This decentralized system ensures transparency and security, making it nearly impossible to alter transaction records once they are added to the blockchain.

Benefits and Risks of Cryptocurrency

Cryptocurrencies offer several advantages, including faster and cheaper transactions, increased privacy, and the potential for high returns on investment. However, they also come with risks. The value of cryptocurrencies can be highly volatile, meaning their prices can change rapidly and unpredictably. They are also sometimes used in illegal activities due to their anonymous nature. Additionally, the lack of regulation means that investors have little protection if things go wrong.

Common Misconceptions

There are many misconceptions about cryptocurrency. Some people believe it is only used for illegal activities, while others think it is a get-rich-quick scheme. In reality, cryptocurrency is a legitimate form of digital currency that can be used for a variety of purposes, from online purchases to investment. However, like any investment, it requires careful consideration and understanding of the risks involved.

Key Terms to Know

1. Blockchain: A digital ledger that records all cryptocurrency transactions across a network of computers. It is secure and unchangeable.
2. Cryptography: The practice of secure communication, which is used to protect cryptocurrency transactions.
3. Decentralized: A system where control is distributed across a network, rather than being held by a single central authority.
4. Miners: Participants in the cryptocurrency network who verify transactions and add them to the blockchain.
5. Volatility: The degree to which the price of an asset, such as cryptocurrency, can change rapidly and unpredictably.

Introducing EasyCoin*

At ACU, we understand that entering the world of cryptocurrency can be daunting. That’s why we’ve developed EasyCoin, a secure and user-friendly way for our members to buy Bitcoin directly within our mobile banking app. With EasyCoin, you can purchase Bitcoin with just a few clicks, knowing that your transactions are safe and secure.

Conclusion

Cryptocurrency is an exciting and rapidly evolving field, but it’s important to approach it with caution and knowledge. At America’s Credit Union, we’re committed to helping you understand the complexities of cryptocurrency and providing you with the tools you need to make informed decisions. With EasyCoin, you can explore the world of Bitcoin confidently and securely, right from your mobile banking app.

Feel free to reach out to us with any questions or concerns. We’re here to support you every step of the way.

*Not NCUSIF insured. No Credit Union Guarantee. Not a deposit. Cryptocurrency may lose value. Not insured by any federal government agency. America’s Credit Union has contracted with Access Softek Advisory Services LLC (“Access Softek”) to make non-deposit investment products available to you. DriveWealth LLC, a SEC registered broker-dealer and member FINRA/SIPC, holds the investment accounts. Investment Advisor Representatives are registered through Access Softek.