Introduction: Investing in cryptocurrencies
The first cryptocurrency to exist was based on Blockchain technology, most likely Bitcoin, which was launched in 2009 by a mysterious person, Satoshi Nakamoto. At the time of writing, 17 million bitcoins have been produced, and a total of 21 million bitcoins are expected to be produced. Other most popular cryptocurrencies are Ethereum, Litecoin, Ripple, Golem, Civic and Bitcoin Cash and Bitcoin Gold.
Users are advised not to invest all their money in one cryptocurrency and try not to invest in the top of the cryptocurrency bubble. At the peak of the cryptocurrency, the price suddenly fell. Because cryptocurrency is a decentralized cryptocurrency, users must invest the amount they can lose because there is no government control over the cryptocurrency.
Apple co-founder Steve Wozniak predicts that Bitcoin will be real gold and will dominate all currencies such as USD, EUR, INR and ASD in the future and become a global currency in the coming years.
Why and why not invest in cryptocurrencies?
Bitcoin was the first cryptocurrency to emerge, and since then more than 1,600 cryptocurrencies with some unique features have been issued for each coin.
Some of the reasons I’ve tried and wanted to share are that cryptocurrencies are created on a decentralized platform – so users don’t have to ask a third party to transfer cryptocurrency from one destination to another. Bank-like platform to transfer money from one account to another. The chances of breaking and stealing your cryptocurrencies are almost zero until you share a cryptocurrency based on very secure blockchain technology and share some of your critical information.
You should always avoid buying cryptocurrency at the high point of the cryptocurrency bubble. Many of us take cryptocurrencies to the top in the hope of making quick money and falling victim to the bubble burst and losing money. It is better for users to do a lot of research before investing money. It is always good to put your money in more than one cryptocurrency instead of one, because several cryptocurrencies grow more, while other cryptocurrencies enter the red zone, some are in the middle.
Focuses on cryptocurrencies
In 2014, Bitcoin accounted for 90% of the market, and the remaining cryptocurrencies accounted for the remaining 10%. In 2017, Bitcoin still dominated the cryptocurrency market, but its share fell sharply from 90% to 38%, and altcoins such as Litecoin, Ethereum, Ripple grew rapidly and captured a large part of the market.
Bitcoin still dominates the cryptocurrency market, but it is not the only cryptocurrency you should consider when investing in a cryptocurrency. Here are some of the key cryptocurrencies you should consider:
Where and how to buy cryptocurrencies?
While it was not easy to buy cryptocurrency a few years ago, there are now many existing platforms for users.
In 2015, India has two major bitcoin platforms, Unocoin Wallet and Zebpay Wallet, where users can only buy and sell bitcoin. Users should buy bitcoin only from their wallets, not from anyone else. There was a price difference in the exchange rate, and users had to pay a certain nominal fee to complete their transactions.
In 2017, the cryptocurrency industry grew rapidly and the price of Bitcoin rose spontaneously, especially in the last six months of 2017, forcing users to look for Bitcoin alternatives and crossing the 14 mark in the Indian market.
Unodax and Zebpay are the two main platforms that dominate the market with 90% market share in India – it only deals with Bitcoin. This gives other organizations a chance to grow with other altcoins and even forced Unocoin and others to add more currency to their platforms.
Unocoin, one of India’s leading cryptocurrency and blockchain companies, has launched an exclusive UnoDAX Exchange platform for its users to trade multiple cryptocurrencies in addition to Bitcoin trading on Unocoin. The difference between the two platforms was that Unocion only provided instant buying and selling of bitcoin, while on UnoDAX users could place an order for any available cryptocurrency, and if it matched the buyer, the order would be fulfilled.
Other major exchanges available for cryptocurrency trading in India are Koinex, Coinsecure, Bitbns, WazirX.
Users must open an account on any exchange by registering with an email ID and providing KYC details. Once their account is verified, anyone can start trading the coins of their choice.
Users should research well before investing in any coin and not fall into the cryptocurrency trap. Users should explore exchange reliability, transparency, security features, and more.
All exchanges charge a nominal fee for each transaction. There are two types of payment – Maker fee and Taker fee. If you want to transfer your cryptocurrencies to another exchange or to your personal wallet, you must pay the transfer fee along with the transaction fee. Since the difference for the transfer of coins on different exchanges is the price module, the payments depend only on the coins and the exchange.
Basic altcoins other than bitcoin
As mentioned above, Bitcoin dominates the market with 38% market share, followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges such as UnoDAX, Bitfinex, Kraken, Bitstamp have listed many other coins such as Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and more. If any of the coins fit into your portfolio, you should buy it.
But because the cryptocurrency market is so volatile and no government has control over it, you have to put the money you can lose on the market.
When to buy?
There are no hard and fast rules about when to buy your favorite cryptocurrency. But market stability needs to be explored. You shouldn’t do it at the top of a cryptocurrency bubble or when the price is constantly falling. It is always considered the best time when the price is relatively stable at a low level for a while.
Method of storing cryptocurrencies
Before buying any cryptocurrency, you need to understand how to keep your cryptocurrency safe.
In general, all exchanges provide a storage facility where you can keep your coins safe. When you store cryptocurrency on exchanges, you should not share user information, password, 2FA.
Paper wallets, hardware wallets, and software wallets are some of the channels that can store cryptocurrencies.
Paper wallet: Paper wallet is an offline cold storage method to store your cryptocurrency. It prints your private and public key on a piece of paper with the QR code printed on it. All you need to do is scan the QR code for future transactions. Why is it safe? No need to worry about your account being hacked or attacked by any malware. You simply need to keep your piece of paper safe in the closet and, if possible, keep two or three paper purses under your full control.
Hardware Wallet: A hardware wallet is a physical device that keeps cryptocurrency safe. There are many forms of hardware wallet, but the most commonly used hardware wallet is USB. When you keep your cryptocurrency in your hardware wallet, you just need to keep in mind that you should not lose your hardware wallet, as you will not be able to retrieve your cryptocurrency once it is lost.
A popular event is when a person issues 7000+ bitcoins and stores them in a hardware wallet and stores it in another hardware wallet. One day, he threw away his hardware wallet where he kept his cryptocurrency instead of damaged equipment and lost all his bitcoin.
What can you buy from cryptocurrencies in India?
Most people think that buying and selling any cryptocurrency is just an investment and a high return in the long and short term. Influencers and bitcoin investors believe that in the coming years, Bitcoin will dominate all fiat currencies and be accepted as an international currency.
Dell is one of the largest e-commerce businesses that accepts bitcoin as a payment. Expedia and UNICEF are other examples.
In India, Sapna Book Mall used the Unocoin merchant service to accept bitcoin as payment. People booked movie tickets through BookMyShow or recharged their mobile phones using the Unocoin platform. According to the report, they have suspended the service, but plan to resume work in the near future.
Cryptocurrency is one of the growing investment sectors, and in the past, real estate, gold, stock markets, etc. gave a nice income compared to. You can buy cryptocurrency and save it for a long time to make a nice profit, or you can go for a short time to make a quick profit, because in the past we have seen a 1000% + increase in many coins. Because cryptocurrency is a volatile market and the government has no control over the industry. One has to invest in any cryptocurrency that one can lose.
If you do not want to keep your cryptocurrency on the exchange, you can keep your cryptocurrency in a hardware wallet, paper wallet, software wallet.