Beginner's Guide: Introduction In Cryptocurrencies

 

Introduction: How to Invest in Cryptocurrencies

Bitcoin was the first cryptocurrency to come into existence. It was developed on Blockchain technology. This was probably launched by Satoshi Nakamoto in 2009. It was estimated that 17 million bitcoin were mined at the time of writing this blog. There are currently 21 million bitcoin mined. Other popular cryptocurrencies include Ethereum, Ripple and Golem, Ripple and Civic, as well as hard Best Crypto 2021 forks such Bitcoin Cash or Bitcoin Gold.

Users are advised not to invest all of their money in one cryptocurrency. Also, avoid investing during the cryptocurrency bubble's peak. When the cryptocurrency bubble is at its peak, it has been seen that the price drops suddenly. Because cryptocurrency is volatile, users should only invest what they can afford to lose. There is no government control over cryptocurrency because it is decentralized.

Steve Wozniak was the co-founder of Apple. He predicted that Bitcoin would be a true gold, and will overtake all currencies such as USD, EUR and INR in future. It will also become a global currency in the coming years.

Why and why not invest in cryptocurrencies

Bitcoin was the first cryptocurrency to be created. Since then, around 1600+ cryptocurrencies have been launched. Each coin has a unique feature.

One of the reasons I've experienced and would love to share is that cryptocurrencies were created on a decentralized platform. Users don't need to transfer cryptocurrency to other destinations. This is in contrast to fiat currencies, which require users to use a platform such as Bank to transfer money between accounts. The blockchain technology that is used to create cryptocurrency makes it almost impossible for hackers and thieves to steal your cryptocurrency.

You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many people buy cryptocurrencies at their peak hoping to make quick cash. However, they often fall for the hype and lose their money. Users should do extensive research before they invest their money. It is always a good idea to invest in several cryptocurrencies, rather than one. This is because it has been observed that very few cryptocurrencies grow faster than others.

Focus on Cryptocurrencies

Bitcoin held the 90% market in 2014 while the rest of the cryptocurrencies hold the remaining 10%. While Bitcoin still dominates the crypto market, its share has fallen sharply from 90% to 38% in 2017. Altcoins such as Ripple, Ethereum, and Litecoin have grown quickly and captured most of the market.

While Bitcoin remains the dominant cryptocurrency, it is not the only one you should consider when investing in cryptocurrency. Here are some of the most important cryptocurrencies to consider:

Bitcoin

Litecoin

Ripple

Ethereum

Tron

Civic

Golem

Monero

How and where can you buy Cryptocurrencies

It was difficult to purchase cryptocurrencies a few years ago, but it is now much easier.

In 2015, India has two major bitcoin platforms Unocoin wallet and Zebpay wallet where users can buy and sell bitcoin only. Users must only buy bitcoin from their wallet and not from anyone else. The price difference between buying and selling bitcoin was significant. Users also had to pay a nominal fee to complete their transactions.

The Cryptocurrency market grew exponentially in 2017, and the Bitcoin price rose spontaneously in the last six months of 2017. This forced users to search for alternative Bitcoins and it reached 14 lakhs on the Indian market.

As Unodax and Zebpay are the two major platforms in India who were dominating the market with 90% of market share - which was dealing in Bitcoin only. This allows other organizations to grow with altcoins, and even forced Unocoin to add additional currencies to their platform.

Unocoin is India's most prominent cryptocurrency and blockchain company. They have created UnoDAX Exchange, a platform that allows users to trade multiple currencies in addition to Bitcoin. Unocion offered instant bitcoin buy and sale, whereas UnoDAX allows users to place orders of any cryptocurrency they wish and, if the recipient matches, the order will be executed.

There are also several other major exchanges that allow you to trade cryptocurrencies in India, such as Coinsecure, Bitbns and WazirX.

To open an account on any exchange, users must sign-up with an email ID and submit the KYC details. After their account is verified, they can trade the coins of their choice.

Users have to research well before investing in any coins and not fall into the trap of cryptocurrency-bubble. It is important to research the credibility and security of any exchange.

Every transaction is subject to a nominal fee by all Exchanges. There are two types: the Taker fee and the Maker fee. You will need to pay the transfer fee if you wish to send your cryptocurrencies to another exchange or private wallet. As each exchange has a different price module for the transfer of coins, the charges are dependent on the coins and exchange.

Major altcoins that are not Bitcoin

Bitcoin dominates the market with a 38% share, followed by Ripple and Ethereum. Ripple, Ethereum is Litecoin and Bitcoin Cash are also dominating the market. UnoDAX and Bitfinex have many coins listed, including Tron, Tron, Kraken, Bitstamp, Ripple, Ethereum, Litecoin, Kraken, Bitstamp, Basic Attention, Augur, Monero and Tron. You must purchase any coins that match your portfolio.

You must make sure you only invest the amount you can afford to lose. The cryptocurrency market is highly volatile and there is no government control.

What is the best time to buy?

There is no set rule about when you should buy your favorite cryptocurrency. However, it is important to research market stability. It is best to not invest in cryptocurrency at the height of a crypto bubble or when it is falling continuously. It is best to buy when the price remains stable and relatively low for a period of time.

Cryptocurrencies Storage Method

It is important to understand how to protect your cryptocurrency before you buy any cryptocurrency.

All exchanges offer a safe place to store your coins. When you have cryptocurrency on exchanges, you must not share your password, user information, or 2FA.

There are many ways to store your cryptocurrency: Paper wallet, Hardware wallet, and Software wallet.

Paper wallet: A paper wallet is an offline cold storage option for your cryptocurrency. The paper wallet prints your private key and public key on a piece. A QR code is also printed. To make future transactions, one must simply scan the QR code. It is safe! There is no need to be concerned about hacking your account or malicious malware. Keep your paper in a safe place and, if possible, keep at least two or three pieces in your paper wallet.

Hardware wallet: A physical device that protects your cryptocurrency. There are many types of hardware wallets, but the most popular is USB. Keep your cryptocurrency safe in a hardware wallet. Once it is lost, you will not be able to retrieve it.

One notable incident was when a person mined 7000+ Bitcoin and stored it in their hardware wallet. Then, he kept the hardware wallet with another wallet. He lost all his bitcoin when he accidentally threw his hardware wallet, in which he kept his cryptocurrency, instead of the damaged hardware.