What is Cryptocurrency?

Most people have heard of Bitcoin, but have no idea what it is or how it works. Bitcoin is a form of virtual or digital currency known as cryptocurrency, which uses cryptography or code to keep transactions secure. Cryptocurrency introduced a new type of currency on a software structure.

What Is The Origin Of Cryptocurrency?

Satoshi Nakamoto was the originator of bitcoin, and release the original version of the Bitcoin software in 2009. The open source worked on the software for two years, when Nakamoto presumably moved on to other projects. There’s a lot of speculation about who Nakamoto actually is, but it may remain a mystery.

How Does It Work?

Cryptocurrency is real money in a digital a form of payment similar to secure, online e-commerce payment processors to pay for goods or services. A lot of companies involved with cryptocurrency issue tokens that are their form of currency that is similar to tokens in an arcade. Actual money is exchanged for the tokens. The new form of currency is so popular that there are more than 1,400 cryptocurrencies that are used for online trade. According to statistics, all cryptocurrencies currently in use have a value of approximately $708 billion. Bitcoin, the leader in cryptocurrency, has a value of $283 billion.

What Is The Blockchain?

The blockchain is the database that’s compatible with cryptocurrency. The way the blockchain differs from a traditional database is that the data can be stored on thousands of computers in locations around the world. Since the data is on so many systems, the cost is much lower than with a traditional database. Due to the encryption, if part of the data is compromised, the entire database isn’t exposed.

What’s the Attraction Of Cryptocurrency?

1. Many people are using cryptocurrency because they see it as the currency that everyone will be using in future generations. They’re buying the currencies now because they speculate that it will be more valuable in the future.

2. Inflation is another reason that people are using cryptocurrency. When banks manage the supply of money, it tends to decrease in value during periods of inflation.

3. Some cryptocurrency supporters like the idea of the blockchain, the system that cryptocurrencies use. The theory is that the blockchain is more secure than more traditional systems used for processing monetary transactions.

4. Some cryptocurrency users prefer the idea of conducting financial transactions without government interference.

5. Some financial speculators aren’t interested in using cryptocurrency because they’ll be more widely accepted for financial transactions in the future. The belief is that the currencies will soar in value, so they’re buying them know before the prices drastically increase.

Finance Tips For New Parents

One of the most important things you can do before your baby is born is prepare a financial checklist. Raising a child is expensive, so the more preparation you do the easier the experience will be. You’ll also save more money than you would have without a plan. Below are some of the top financial tips that new parents should use when creating a checklist.

Research Health Insurance

Even with health insurance, the fees associated with baby care can add up. Do research so you know what sort of fees to expect with labor, delivery, and prenatal visit. If you estimate how much the medical bills will cost, you won’t be surprised by the final bill.  

Maternity and Paternity Leave

Does your company offer maternity or paternity leave? Do you know how many days you are allowed to take? Do you get paid during the entire period? These are the type of important questions you need to ask. If you take off for an extended period of time, and your company doesn’t provide payment, your finances can be seriously impacted.

Prepare A Baby Budget

After you estimate healthcare costs and understand your leave situation, make a budget. Your budget will guide you as you purchase necessary items. It can also help prevent you from purchasing unnecessary items. If you’re particularly budget-conscious, don’t hesitate to purchase used items. Your budget should also include estimates for the monthly costs associated with diapers, food, etc. The more budget planning you do before your baby is born, the better.

Find A Pediatrician

In order to save money, it’s important to choose a pediatrician that’s within your insurance network.  Ask friends and family members for recommendations. Also, don’t be afraid to interview potential candidates.

Start An Emergency Fund

Whether you’re a parent or not, emergency funds are a financial necessity. However, they’re especially important for parents since children are prone to accidents. As a parent, you never know when you’ll need extra funds to pay for an unexpected expense.

Health Insurance For Your Child

Add your child to your health insurance as soon as possible. Most health insurance policies give parents thirty days to add their child to a policy. The last situation you want is for your child to be sick and uninsured, so take care of this step right away.

Start Saving For Education

Every year the price of college tuition rises, so it’s never too early to start saving for your child’s education. Consider starting a 529 plan. It will allow you to save money and avoid taxes.  

Back to Basics: Are You Doing These Things?

With the new year approaching, what better way to kick things off then by getting back to financial basics. The basics are easy to let slip and lose control of if you’re not mindful of them. In order to get back to stable financial ground in the new year, check out the following items and see how you’re stacking up.

Financial Calendar

Kick things off on the right foot by setting up a financial calendar. Set reminders for monthly payments, pulling credit reports, and any other money to-do’s that too often fall through the cracks. Setting reminders keeps your finances in check and gives you the opportunity to look at the year ahead of you. There’s nothing better than being prepared!

Tracking Net Worth

Periodically, it’s a good idea to check in on your overall net worth. Keeping an eye on your net worth is the best indicator of your financial footing. It also will put into perspective your debt versus your assets. If you owe more money than you’d like, tracking your net worth will help you see progress towards your goals in either direction.

Creating Goals

Reevaluating and creating new goals is an excellent way to get back to the basics. Financial goals, big and small, are great ways to get you where you want to be. Identify what you need to accomplish and plan how to attain it. Solidifying goals will give you something to work towards.

Becoming Money Savvy

Finally, take the time to become money savvy overall. You can do this by practicing smart spending, learning new ways to save, and staying on top of finance trends. You can also work on sticking to a budget in order to keep your finances in tip-top shape! No matter what you do, work on improving the way you think and interact with your finances.