How To invest in Cryptocurrencies

How To invest in Cryptocurrencies

Introduction: To invest in Cryptocurrencies

The first cryptocurrency that comes into existence was Bitcoin which was created on Blockchain technology and probably it was created in 2009 by a mysterious person Satoshi Nakamoto. At the time writing this blog there were 17 million bitcoin that had been mined, and it is believed that a total of 21 million bitcoin could be mined. The other cryptocurrencies with the highest popularity 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 invest all their money in one cryptocurrency and try to avoid investing during the height of cryptocurrency bubble. There has been reports that price has been suddenly reduced when it’s at the top of the cryptocurrency bubble. Since the cryptocurrency market is volatile, therefore investors must only invest the amount Best crypto insurance company which they can afford to lose since there is no oversight by any authority on cryptocurrency since it is a decentralized cryptocurrency.

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

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

Bitcoin was the first cryptocurrency which came into existence, and since then around 1600+ cryptocurrencies has been launched with some unique characteristic for each one.

Some of the reasons which I’ve experienced and I would like to share with you, cryptocurrencies have been created using a decentralized system – which means that users don’t need a third party for transferring cryptocurrency from one place to another one, unlike fiat currency that requires an exchange platform such as a Bank to transfer money from one account to the other. Cryptocurrency is based on a secure blockchain technology that has virtually impossible to hack or steal your cryptocurrency if you’ve kept your vital 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 quick cash, but then fall to the hype surrounding bubbles and lose their money. It is better for users to conduct a thorough study prior to investing in the funds. It is always recommended to put your money in many different cryptocurrencies, rather than just one as it has been found that certain cryptocurrencies have higher growth than others, and some are more average when other cryptocurrency’s go to an area of red.

Bitcoin and Cryptocurrencies in Focus

Since 2014 Bitcoin is the sole holder of 90% market and rest of the cryptocurrencies holds the remaining 10%. As of 2017, Bitcoin continues to dominate the crypto market , but its share has dropped sharply from 90% to 38% and altcoins such as Litecoin, Ethereum, Ripple have grown quickly and captured the majority part of the marketplace.

Bitcoin is still dominating the market for cryptocurrency, but it’s by no means the only cryptocurrency that should be considered when investing in crypto. The most important cryptocurrencies that you should consider are:

Bitcoin

Litecoin

Ripple

Ethereum

Tron

Civic

Golem

Monero

Where and how do I buy Cryptocurrencies?

In the past, it was not simple to buy 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, which allows users to buy and sell bitcoin only. Users must purchase bitcoin using their wallet, and not from another person. There was a price difference in buying and selling rate and users has to pay some nominal fee for completing their transactions.

In 2017, Cryptocurrency industry increased dramatically and the cost of Bitcoin increased rapidly, particularly in the final half of 2017 that forced users to look for alternatives of Bitcoin and even crossed 14 lakhs for the Indian market.

As Unodax is and Zebpay are the two major platforms in India who were dominating the market with over 90 percent of market share which dealt in Bitcoin only. It also gives the opportunity to other organizations to expand their reach by partnering with other altcoins and even forced Unocoin and others to add additional currencies to their platform.

Unocoin, one of India’s leading blockchain and cryptocurrency companies, created an exclusive platform UnoDAX Exchange for their users to trade multiple currencies apart from trading of Bitcoin through Unocoin. The main difference between the two platforms was – Unocion was providing immediate buy and sell of bitcoin, while on UnoDAX, users can place an order with any cryptocurrency and if the cryptocurrency matches with the recipient, the purchase is executed.

Other exchanges used for trading cryptocurrencies in India include Koinex, Coinsecure, Bitbns, WazirX.

Users have to open an account on one of the exchanges by the registration process by submitting an email ID and submitting the KYC details. After their account is verified, one can start trading with the coins that they prefer.

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, transparency, security features and more.

All Exchanges charge a nominal fee for each transaction. There are two kinds of fees – Taker fee and Maker fee. Beyond the transaction cost you must pay the transfer fee, if you plan to transfer cryptocurrency to another exchange or your personal wallet. The charges solely depend on the exchange and coins since each exchange has a differing price options for moving the coins.

Major altcoins other than Bitcoin

As we have mentioned, Bitcoin is dominating the market, holding a 38% market share . It is followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges like UnoDAX, Bitfinex, Kraken, Bitstamp have listed many other coins such as Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and many more. If any of these coins are in your portfolio, then you need to buy it.

However, you need to put your money in the market which you can afford to lose since the it is extremely unstable and there is no government authority over it.

When Should I Buy?

There’s no definitive rule for when to purchase your favorite cryptocurrency. But it is essential to study the market stability. You should not but in the midst of a crypto bubble or when the price is crashing continuously. The ideal time to invest in cryptocurrency is when the price has remained stable relatively at a low price for a long time.

Cryptocurrencies Storage Method

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

The majority of exchanges have a storage facility where you can keep your cash safely. You should not divulge your username, password, or user information with anyone. 2FA details, etc. when holding cryptocurrency on exchanges.

Paper Wallet, Hardware wallet, Software wallet are just a few of the channels where one can store their crypto.

Paper Wallet: Paper wallet is an offline cold-storage system to store your crypto. It prints your public and private key onto a piece of paper. The it also prints a QR code. One needs to look up the QR code to verify any future transactions. Why is it safe? There is no need to be concerned about the security of your account or being attacked by any malicious malware. All you need to do is keep your piece of the paper safe in a lock and, if possible, keep two to three pieces of your wallet under your total control.

Hardware Wallet: The Hardware wallet is a physical device which helps keep your cryptocurrency secure. There are many types of hardware wallet but commonly employed is USB. When you have your cryptocurrency in hardware wallet you just need to keep in that mind that you should not lose your hardware wallet since once it is lost it is impossible to retrieve your cryptocurrency.

An incident that is famous, in which an individual has mined more than 7000 bitcoins and kept them their wallet in their hardware and kept it in a different hardware wallet. One day he threw the hardware wallet inside which his bitcoin was kept instead of damaged hardware and he lost all his bitcoin.

What are the best cryptocurrencies to buy in India?

A majority of people think that buying and selling of all cryptocurrencies is to make money and reap the highest returns in a long and short-term. Influencers and bitcoin investors believe that in the coming years Bitcoin will be the most dominant of all fiat currencies and eventually be accepted as an International currency.

Dell is among the largest online businesses that accept bitcoin as payment. Expedia and UNICEF are two other examples.

Within India, Sapna Book Mall accepted bitcoin payments using Unocoin merchant service. People could purchase tickets to movies via BookMyShow or recharging their smartphones through the Unocoin platform. According to the report they’ve stopped the service, however they are planning to resume it in the near the future.

Conclusion:

The cryptocurrency market is one of the growing investment sectors and has provided better yields than gold, real estate and stock-markets at times. You can purchase the cryptocurrency and hold it over the long term for a nice return or choose to invest it in the short term to reap quick profits as we have witnessed the growth of many coins by 1000%+ over the past. Because cryptocurrency is a volatile market and no regulation by the government can be imposed on the business. You must put the money in any cryptocurrency that they can afford to lose.

Leave a Reply

Your email address will not be published. Required fields are marked *