August 16, 2022

Overview: invest in cryptocurrencies

The first cryptocurrency that comes into the existence was Bitcoin which was built on Blockchain technology and probably it was invented in 2009 by a mysterious figure named Satoshi Nakamoto. As of the time I wrote this blog 17 million bitcoin had been mined. It is believed that total 21 million bitcoin is possible to mine. Other cryptocurrencies that are popular include Ethereum, Litecoin, Ripple, Golem, Civic and hard forks of Bitcoin such as Bitcoin Cash and Bitcoin Gold.

It is advised to consumers not to put all their money into one currency and to stay clear of investing during the height of cryptocurrency bubble. It has been noticed that price has been suddenly reduced when it’s near the height of the crypto bubble. Since Best crypto insurance company the cryptocurrency is a volatile market and users are required to invest an amount which they can afford to lose, as there isn’t control from any government over cryptocurrency because it is a decentralized cryptocurrency.

Steve Wozniak, Co-founder of Apple predicted that Bitcoin is real gold and it will dominate all currencies such as USD, EUR, INR, and ASD in the near future and be a the world’s currency in the coming years.

Why and why not Do you want to invest in cryptocurrencies?

Bitcoin became the first crypto that came into existence. Since then, around 1600+ cryptocurrency has been introduced with a unique feature for each coin.

There are a few reasons that I have experienced and would like to share, cryptocurrencies have been created through a decentralized platform to ensure that users don’t require a third party to transfer money from one destination to another one, in contrast to fiat currencies where the user requires the assistance of a platform like Bank to transfer funds from one account to the other. Cryptocurrency built on a very secure blockchain technology with almost no chance of hacking and steal your cryptocurrencies until you don’t share your some critical details.

You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. A lot of people buy cryptos at the height of the bubble in hopes of making quick money and fall victim to the hype surrounding bubbles and then lose their investment. It is best to do a lot of research prior to investing their money. It is always beneficial to put your money in multiple cryptocurrencies instead of one since it has been observed that few cryptocurrencies grow more than others, and some are more average when other cryptos fall in that red area.

Bitcoin and Cryptocurrencies in Focus

The year 2014 was the most successful for Bitcoin. Bitcoin held the dominating 90 percent market share, and the rest of the cryptos hold the remaining 10 percent. The year 2017 is the last time Bitcoin has continued to be the most dominant market for crypto, but its share has dropped sharply from 90 percent to 38%. altcoins like Litecoin, Ethereum, Ripple have grown quickly and captured much part of the marketplace.

Bitcoin is still the most popular market for cryptocurrency but it’s not the only cryptocurrency which you need to consider while investing in crypto. Some of the major cryptocurrencies you should think about:

Bitcoin

Litecoin

Ripple

Ethereum

Tron

Civic

Golem

Monero

Where and how to buy Cryptocurrencies?

While some years ago it was not easy to buy crypto, now users can choose from a wide range of platforms.

As of 2015 India offers two main bitcoin platforms The Unocoin account and Zebpay wallet where users can purchase and sell bitcoin only. Users must purchase bitcoin through their wallets only, but not from any other person. There was a slight difference in buying and selling rate . Users have to pay a small fee for completing their transactions.

In 2017, the Cryptocurrency industry has grown tremendously, and the value of Bitcoin grown spontaneously, especially during the last half of 2017 that made people look for alternatives to Bitcoin and crossed 14 lakhs within the Indian market.

As Unodax along with Zebpay are the two main platforms in India which were the dominant players in the market, with 90% of market share – that was based on Bitcoin only. It also gives the opportunity to other organizations to expand their reach by partnering with other altcoins . They even compelled Unocoin and other companies to add more currencies to their platform.

Unocoin is one of the most prominent Indian cryptocurrency and blockchain companies, has established an exclusive platform UnoDAX Exchange for their users to trade multiple cryptocurrencies apart from trading Bitcoin with Unocoin. The main difference between the two platforms was – Unocion was providing immediate buy and sell of bitcoin. On UnoDAX users are able to place an order of any available cryptocurrency, and if it is compatible with the recipient, the order will be executed.

Other major exchanges for trading cryptocurrencies in India are Koinex, Coinsecure, Bitbns, WazirX.

Users need to create an account with any of the exchanges by signing-up with email id and submitting the KYC information. Once their account is verified, they can begin trading with the coins of their choice.

Users have to research well before investing in any coins and not fall into the trap of cryptocurrency-bubble. Users should research the exchange’s credibility and transparency, security features, and more.

All Exchanges charge a fee for each transaction. There are two kinds of fees – Maker fee and Taker fee. Beyond the transaction cost, one has to pay the fee for transfer, if you plan to transfer cryptocurrencies in other exchange or your private wallet. The fees are based on the type of currency and exchange as each exchange uses a different price modules for the transfer of the coins.

Major Altcoins other than Bitcoin

As mentioned above, Bitcoin is dominating the market with a 38% share of the market, followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges such as UnoDAX, Bitfinex, Kraken, Bitstamp have listed many other coins including Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and numerous others. If any of these coins is in your portfolio, you should buy it.

However, you should invest the money in a market which you can afford to lose as cryptocurrency market is very unpredictable and there is no government any control over it.

What is the best time to buy?

There’s no definitive rule for when to purchase your favorite cryptocurrency. But it is essential to study the market stability. It is not advisable to invest at the peak of a crypto bubble or when prices are crashing continually. Always best time is considered when the price has remained stable relatively at a low price for a long time.

Cryptocurrencies Storage Method

Before investing in any cryptocurrency, you must be aware of how to ensure the security of your cryptocurrency.

Most exchanges provide a storage service where you can keep your cash safely. You should not divulge your login details, passwords, or 2FA details, etc. when holding cryptocurrency on exchanges.

Paper wallet, hardware wallet, Software wallet, and Hardware wallet are among the ways to store their crypto.

Paper Wallet: Paper wallet is an offline cold storage method to store your cryptocurrency. It prints your public and private key on a paper where QR codes are also printed. One needs to look up the QR code to verify the future transactions. Why is it safe? No need to worry about the hack of your account or attack of any malware or virus. All you need to do is keep your piece of the paper safe in a lock and, if you can, keep two to three pieces of paper in your wallet all in your complete control.

Hardware Wallet: Hardware wallet is a device which helps keep your cryptocurrency secure. There are many forms of hardware wallets but the most widely used is USB. If you keep your crypto in a hardware wallet, you must keep in your mind that you must not lose your hardware wallet because when it’s lost, you can not retrieve your cryptocurrency.

A famous incident occurred, in which someone had mined over 7000 bitcoin and stored it in their hardware wallet , and kept it in another wallet. Then one day, he threw away the hardware wallet in which the cryptocurrency was stored instead of damaged hardware and he lost all his bitcoin.

What can you buy using cryptocurrencies in India?

Many people think that selling and buying cryptocurrency is only for the investment and getting the high returns on an immediate and short-term. Bitcoin investors and influencers are believing that in coming years Bitcoin will dominate all the fiat currencies and eventually be recognized as an International currency.

Dell is among the biggest online retailers that accepts bitcoin for payment. Expedia and UNICEF are other examples.

For India, Sapna Book Mall accepted bitcoin payments by using the Unocoin merchant service. People could purchase tickets to movies through BookMyShow or recharging their mobile using Unocoin platform. As per the report, they’ve shut down the service but planning to resume it in the near the future.

Conclusion:

Cryptocurrency is among the fastest-growing investment fields and has provided better gains over gold, real estate or stock-markets at times. It is possible to buy cryptocurrency and hold it over the long term to earn good returns, or opt for the short-term to earn a quick profit. we’ve seen the growth of many coins in 1000%+ in past. As cryptocurrencies are unsteady and there is no control by government over the industry. You must put the money that they can afford to lose.

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