Overview: Invest in Cryptocurrencies
The first cryptocurrency that came into existence was Bitcoin which was built on Blockchain technology. It was introduced in 2009 by an unknown name Satoshi Nakamoto. At the time of writing this blog, 17 million bitcoin had been mined. It is believed that total 21 million bitcoin is possible to mine. Other popular cryptocurrency are Ethereum, Litecoin, Ripple, Golem, Civic and hard forks of Bitcoin like Bitcoin Cash and Bitcoin Gold.
It is recommended to investors not to invest all their money into one currency and try to avoid investing during the peak of cryptocurrency bubble. There has been reports that the price has suddenly dropped down when it is on the peak of the cryptocurrency bubble. Since the cryptocurrency market is volatile, therefore investors must only invest the amount they can afford to lose as there is no oversight by any authority on cryptocurrency since it is a decentralized cryptocurrency.
Steve Wozniak, Co-founder of Apple predicted that Bitcoin Best crypto insurance company is the real gold, and will rule all currencies, including USD, EUR, INR and ASD in the near future and be a the world’s currency in the coming years.
Why and why not Invest in Cryptocurrencies?
Bitcoin was the initial cryptocurrency which came into existence and thereafter around 16000+ cryptocurrency have been created with an unique feature for each coin.
There are a few reasons that I have experienced and want to share are that cryptocurrency was created on the decentralized platform – to ensure that users don’t require a third party to transfer cryptocurrency from one destination to another one, unlike fiat currency where the user requires the assistance of a platform like Bank to transfer funds across accounts from one to another. Cryptocurrency built on a very safe blockchain technology and almost impossible to hack or get your cryptocurrency stolen if you’ve shared your important details.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many of us purchase cryptos at the height of the bubble in the hope to make fast money, only to fall victim to the hype surrounding bubbles and end up losing their money. It is best to do a lot of investigation prior to investing their funds. It is always beneficial to invest your money into multiple cryptocurrencies instead of one since it has been observed that few cryptocurrencies grow more than others and that some of them are less stable when other cryptocurrencies go in an area of red.
The Cryptocurrency to Focus
As of 2014, Bitcoin is the sole holder of 90 percent market, while the rest of the cryptocurrency market holds the remaining 10%. As of 2017, Bitcoin has continued to be the most dominant market for crypto, but its share has dropped sharply from 90% to 38% and Altcoins like Litecoin, Ethereum, Ripple has seen rapid growth and have captured the majority portion of market.
Bitcoin is still dominating the cryptocurrency market but not the only cryptocurrency that you should consider when investing in crypto. The most important cryptocurrencies you must consider:
Where and how to buy Cryptocurrencies?
When it was a few years ago, it was difficult to purchase digital currencies, today’s users have a variety of platforms available.
In 2015, India is home to two bitcoin platforms Unocoin wallet , and Zebpay wallet. Users can purchase and sell bitcoins only. Users are required to 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 some nominal fee to complete their transactions.
In 2017, the cryptocurrency sector has grown tremendously, and the value of Bitcoin grown spontaneously, especially in last six months of 2017 which led users to seek alternatives to Bitcoin and reached 14 lakh for the Indian market.
According to Unodax as well as Zebpay are the two largest platforms in India which dominated the market with 90% of market share – which was trading in Bitcoin only. It allows another organization to grow by using alternative altcoins. It also forces Unocoin and other companies to add more currencies on their platform.
Unocoin, one of India’s leading blockchain and cryptocurrency firms, has created an exclusive platform UnoDAX Exchange for their users to trade various cryptocurrencies aside from trading of Bitcoin through Unocoin. The distinction between these platforms was – Unocion provided the ability to buy and sell instantly bitcoin. On UnoDAX users can make an order for any cryptocurrency and if the cryptocurrency matches with the person who will receive the order, the transaction is executed.
Other major exchanges to trade cryptocurrency in India are Koinex, Coinsecure, Bitbns, WazirX.
Customers must create an account at any exchange by joining with an email id and submitting the KYC information. After their account is verified, they can begin trading in the currency of their choice.
Users have to research well before investing in any coins and not fall into the trap of cryptocurrency-bubble. The exchange’s credibility as well as transparency, security, and more.
All Exchanges charge a nominal charge for every transaction. There are two kinds of fees – Taker fee and Maker fee. Apart from the transaction fee, one has to pay the transfer fee, in case you want to transfer your coins to an exchange other than your private wallet. The charges solely depend on the exchange and coins as each exchange uses a difference price module for transferring the coins.
Major altcoins that are not Bitcoin. Bitcoin
As mentioned above, Bitcoin is dominating 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 like 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 put the money in the market which you can afford to lose as cryptocurrency market is very unstable and there is no government control over it.
When to Buy?
There is no hard rule on when you should buy your preferred cryptocurrency. But one must research the market stability. Don’t invest in the midst of a cryptocurrency bubble , or when prices are crashing continually. The best time to invest is when the price is stable relatively at a low price for a long time.
Cryptocurrencies Storage Method
Before investing in any cryptocurrency, you must know how to safeguard your cryptocurrency.
Generally, all the exchanges offer a storage facility that allows you to keep your money in a safe place. One should not share their login details, passwords, or 2FA when you hold cryptocurrency on exchanges.
Paper Wallet, Hardware wallet, Software wallet are a few of the ways to keep their crypto.
Paper Wallet: The paper wallet is an online cold storage system to keep your cryptocurrency. It prints your personal and public key onto a piece of paper on which a you can also print a QR code. It is necessary to look up the QR code to verify any future transactions. It is safe? You don’t have to worry about the security of your account, or the attack of malware that is malicious. Just keep your piece of the paper safe in your locker and if possible keep two to three pieces of paper wallet completely under control.
Hardware Wallet: Hardware wallet is a physical item which helps keep your cryptocurrency secure. There are several types of hardware wallets, but the most commonly employed is USB. When you keep your cryptocurrency in a hardware wallet, you have to keep in the mind that you should never loose your hardware wallet, as the moment it’s lost it will be impossible to get your money back.
One famous incident, where someone has mined more than 7000 bitcoins and stored it in their hardware wallet , and kept it in a different hardware wallet. One day , he destroyed the hardware wallet where he stored his cryptocurrency instead of damaged hardware and lost all of his bitcoin.
What can buy from cryptocurrencies in India?
Many people think that buying and selling any cryptocurrency is just for investment purposes and bringing the high returns on both a short-term and long-term. The bitcoin community and its investors are betting that in the coming years Bitcoin will become the dominant fiat currencies, and will soon become an accepted International currency.
Dell is one of the largest online businesses that accept bitcoin as payment. Expedia and UNICEF are two other examples.
Then in India, Sapna Book Mall was accepting bitcoin for payment via Unocoin Merchant Service. Customers were able to book tickets for movies through BookMyShow or charging their mobiles by using the Unocoin platform. According to reports, they’ve stopped the service, however they are planning to restart it in the near the future.
The cryptocurrency market is one of the growing investment sectors and it has given nice gains over gold, real estate or stock-markets over the years. You can purchase the cryptocurrency and keep it for the long-term to reap great returns, or choose to invest it in the short term to earn a quick profit. we have seen the growth of a variety of coins with 1000%+ over the past. Since the cryptocurrency is an unstable market, there is no oversight by the government is allowed in the business. One must invest the amount in any cryptocurrency which they are able to afford losing.