Introduction: To Invest in Cryptocurrencies
The first cryptocurrency to come into existence was Bitcoin which was created on Blockchain technology and probably it was created in 2009 by the mysterious person Satoshi Nakamoto. At the time of writing this blog there were 17 million bitcoin that had been mined, and it is believed that total 21 million bitcoins can be extracted. The other most popular cryptocurrencies include Ethereum, Litecoin, Ripple, Golem, Civic and hard forks of Bitcoin such as Bitcoin Cash and Bitcoin Gold.
It is recommended to investors to not put all money in one cryptocurrency and avoid investing in the heights of the cryptocurrency bubble. It has been observed that prices have suddenly dropping when it’s near the height of the crypto bubble. Since cryptocurrency Best crypto insurance company is a volatile market so users must invest the amount they are able to lose since there is no oversight by any state or government regarding cryptocurrency since it is a decentralized currency.
Steve Wozniak, Co-founder of Apple predicted that Bitcoin is actually gold and it will dominate all currencies, including USD, EUR, INR, and ASD in the near future, and will become a the world’s currency in the coming years.
What is the reason and why should you not Do you want to invest in cryptocurrencies?
Bitcoin was the first cryptocurrency that came into existence, and since then around 1600+ different cryptocurrencies have been released with an exclusive characteristic for each one.
Some of the reasons which I’ve encountered and I’d like to share, cryptocurrency was created through a decentralized platform so users don’t require a third party to transfer their cryptocurrency from one destination to another one, in contrast to fiat currencies where the user requires an exchange platform such as a Bank to transfer money from one account to another. Cryptocurrency is based on a secure blockchain technology with almost impossible to hack or steal your cryptocurrencies until you don’t share your some important details.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many of us buy the cryptocurrency at the top of the market in hopes of making fast money, only to fall victim to the hype surrounding bubbles and then lose their investment. It is recommended for people to conduct extensive study prior to investing in the funds. It is always good to put your money in multiple cryptocurrencies instead of one because it has been discovered that few cryptocurrencies grow more, some average if other cryptocurrency’s go to an area of red.
The Cryptocurrency to Focus
The year 2014 was the most successful for Bitcoin. Bitcoin holds the 90 percent market and the rest the cryptocurrency market holds the remaining 10%. The year 2017 is the last time Bitcoin has continued to be the most dominant market of cryptos, however its share has dropped sharply from 90 percent to 38%. altcoins like Litecoin, Ethereum, Ripple has seen rapid growth and have captured the most part of the marketplace.
Bitcoin is still dominating the market for cryptocurrency, but it’s not the only cryptocurrency that is worth considering when investing in crypto. There are several major cryptocurrency you should think about:
Where and How to purchase Cryptocurrencies?
In the past, it was not easy to buy crypto, now users have a variety of platforms available.
As of 2015 India has two major bitcoin platforms There are two major bitcoin platforms: Unocoin wallet and Zebpay wallet where users can buy and sell bitcoin only. Users must purchase bitcoin from wallet only but not from a third party. There was a different between buying and selling rate and users has to pay a nominal amount for completing their transactions.
The Cryptocurrency market increased dramatically and the cost of Bitcoin increased rapidly, particularly during the final half of 2017 that led users to seek alternatives to Bitcoin and even crossed 14 lakhs within the Indian market.
In reality, Unodax as well as Zebpay are two of the major platforms in India that dominated the market with over 90% of market share – that was based on Bitcoin only. It gives the chance to other organizations to expand their reach by partnering with other altcoins and even forced Unocoin as well as other platforms to add more currencies to their platforms.
Unocoin, one of India’s most renowned blockchain and cryptocurrency companies, created an exclusive platform UnoDAX Exchange for their users to trade multiple cryptocurrencies apart from trading Bitcoin through Unocoin. The difference between both platforms was that Unocion offered the ability to buy and sell instantly bitcoin, whereas on UnoDAX users can place an order for any cryptocurrency, and if it is compatible with the recipient, the order will be processed.
Other major exchanges for trading cryptocurrencies in India include Koinex, Coinsecure, Bitbns, WazirX.
Users need to create an account on one of the exchanges by joining with an email id and submitting KYC information. After their account is verified, they are able to begin trading with 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 many more.
All Exchanges have a small fee for each transaction. There are two types of fees – Maker fee and Taker fee. In addition to the transaction fee one must also pay the transfer fee, in case you want to transfer your cryptocurrency to another exchange or your private wallet. The fees are based on the type of currency and exchange because each exchange comes with a difference price module for transferring the coins.
Major altcoins other than Bitcoin
As we have mentioned, Bitcoin is dominating the market with 38% market share , followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges like UnoDAX, Bitfinex, Kraken, Bitstamp have listed many different coins, including Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and numerous others. If any of these coins are in your portfolio, then you should purchase it.
But, you must invest the money in a market that you are able to lose as cryptocurrency markets are extremely volatile , and no one has authority over it.
When to Buy?
There is no hard rule for when to purchase your favorite cryptocurrency. However, it is important to research market stability. Do not invest when the market is at the top of a cryptocurrency bubble when the price is crashing continuously. Always best time is considered when the price is stable relatively at a low value for a period of time.
Cryptocurrencies Storage Method
Before buying any cryptocurrency one must understand how to protect your cryptocurrency.
Generally, all the exchanges have a storage facility that allows you to keep your money in a safe place. You should not divulge your login details, passwords, or 2FA, or account details when holding crypto on exchanges.
Paper wallet, Hardware wallet, Software wallet are a few of the ways to store their crypto.
Paper Wallet: The paper wallet is an online cold storage method to store your crypto. It prints your public and private key onto a piece of a paper where QR code is also printed. One has to just take a picture of the QR code to verify future transactions. It is safe? You don’t have to worry about hacking your account, or the attack of malware that is malicious. All you need to do is keep your bit of paper safe in a lock and, if you can, keep two to three pieces of your wallet under your total control.
Hardware Wallet: Hardware wallet is a tangible device in which you can keep your cryptocurrency safe. There are many types of hardware wallet but commonly utilized is USB. If you store your cryptocurrency in a hardware wallet, you have to keep in mind that you should not lose your hardware wallet as once it is lost it will be impossible to find your cryptocurrency.
A well-known incident, where a person as mining 7000 bitcoin and stored it the bitcoin in their wallets that they have built and kept it in another hardware wallet. One day , the hardware wallet inside which his bitcoin was kept instead of the damaged hardware, and ended up losing all of his bitcoin.
What can buy from cryptocurrencies in India?
A majority of people think that selling and buying all cryptocurrencies is for the investment and getting the highest returns in a long and short-term. The bitcoin community and its investors are believing that in coming years Bitcoin will dominate all the fiat currencies and eventually be accepted as International currency.
Dell is among the largest online stores that accept bitcoin for payment. Expedia and UNICEF are two more examples.
Then in India, Sapna Book Mall was accepting bitcoin for payment by using the Unocoin merchant service. The customers were purchasing tickets to movie shows via BookMyShow or recharging their mobile using Unocoin platform. As per the report, they have stopped the service but planning to start again in near future.
Cryptocurrency is one of the most popular investment areas and has produced better returns than real-estate, gold, stock-markets, etc previously. You can purchase the cryptocurrency and then hold it for a long time for a nice return or choose to invest it in the short term to reap quick profits as we have seen the rise of many coins by 1000%+ during the past. As cryptocurrencies are unstable, it is not under the control of government on the market. It is essential to invest in any cryptocurrency that they are able to afford losing.