Introduction: Invest in cryptocurrencies
The first cryptocurrency to emerge was bitcoin, which was built on Blockchain technology and was probably launched in 2009 by the mysterious man Satoshi Nakamoto. At the time of writing, 17 million bitcoins have been mined and it is estimated that a total of 21 million bitcoins can be mined. The other most popular cryptocurrencies are Ethereum, Litecoin, Ripple, Golem, Civic and Bitcoin hard forks such as Bitcoin Cash and Bitcoin Gold.
Consumers are advised not to invest all their money in one cryptocurrency and to try to avoid investing in the peak of the cryptocurrency bubble. It has been noticed that the price has suddenly dropped when it is on top of the crypto bubble. Because cryptocurrency is a volatile market, consumers must invest the amount they can afford to lose, as no government has control over cryptocurrency, as it is a decentralized cryptocurrency.
Steve Wozniak, co-founder of Apple, predicts that bitcoin is real gold and will dominate all currencies such as USD, EUR, INR and ASD in the future and will become a global currency in the coming years.
Why and why not invest in cryptocurrencies?
Bitcoin was the first cryptocurrency to appear, and then about 1,600+ cryptocurrencies were released with some unique feature for each coin.
Some of the reasons I have experienced and would like to share are that cryptocurrencies are created on a decentralized platform – so users do not require a third party to transfer cryptocurrency from one destination to another, unlike fiat currency, where the user needs a platform such as Bank to transfer money from one account to another. Cryptocurrency built on very secure blockchain technology and almost zero chance of hacking and stealing your cryptocurrencies until you share your critical information.
You should always avoid buying cryptocurrencies at the highest point of a cryptocurrency bubble. Many of us buy cryptocurrencies at the top in the hopes of making quick money and falling victim to the noise of the bubble and losing money. It is better for consumers to do a lot of research before investing money. It is always a good idea to invest your money in several cryptocurrencies instead of one, as it has been observed that few cryptocurrencies grow more, some on average if other cryptocurrencies go into the red zone.
Cryptocurrencies for focusing
In 2014, bitcoin held 90% of the market and the remaining 10% of cryptocurrencies. In 2017, bitcoin still dominates the crypto market, but its share fell sharply from 90% to 38%, and altcoins such as Litecoin, Ethereum, Ripple grew rapidly and took over most of the market.
Bitcoin still dominates the cryptocurrency market, but it is not the only cryptocurrency you should keep in mind when investing in cryptocurrency. Some of the main cryptocurrencies to keep in mind:
Where and how to buy cryptocurrencies?
While a few years ago it was not easy to buy cryptocurrencies, now consumers have many platforms available.
In 2015, India has two major bitcoin platforms, the Unocoin wallet and the Zebpay wallet, where consumers can buy and sell only bitcoin. Consumers should buy bitcoin only from a wallet, but not from another person. There was a price difference in the buying and selling rate and consumers had to pay some nominal fee to complete their transactions.
In 2017, the cryptocurrency industry grew tremendously and the price of bitcoin rose spontaneously, especially in the last six months of 2017, which forced consumers to look for alternatives to bitcoin and passed 14 lakhs on the Indian market.
Because Unodax and Zebpay are the two main platforms in India that dominated the market with 90% of the market share – which dealt only with bitcoin. This allows another organization to grow with other altcoins and even forces Unocoin and others to add more currencies to their platform.
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 at Unocoin. The difference between the two platforms was – Unocion provided immediate purchase and sale of bitcoins only, while in UnoDAX users can order any available cryptocurrency and if it matches the recipient, the order will be executed.
Other major exchanges available for cryptocurrency trading in India are Koinex, Coinsecure, Bitbns, WazirX.
Users must open an account in any of the exchanges by registering with an email ID and submitting KYC data. Once their account is verified, one can start trading coins of their choice.
Consumers need to research well before investing in any coins and not fall into the trap of a cryptocurrency bubble. Consumers need to research the reliability of the exchange, transparency, security features and much more.
All exchanges charge a nominal fee for each transaction. There are two types of fees – manufacturer’s fee and taker fee. In addition to the transaction fee, you must pay the transfer fee if you want to transfer your cryptocurrencies to another exchange or your personal wallet. Fees depend only on coins and exchanges, as different exchanges have a modulus of difference in the price of transferring coins.
Basic altcoins other than bitcoin
As mentioned above, bitcoin dominates the market with 38% market share, followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Stock 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 many others. If one of the coins matches your portfolio, then you should buy it.
But you have to put the money in the market that you can afford to lose, because the cryptocurrency market is very volatile and no government has control over it.
When to buy?
There is no strict rule when to buy your favorite cryptocurrency. But market stability needs to be examined. You should not, except at the peak of the cryptocurrency bubble or when the price is constantly falling. The best time is always considered when the price is stable at a relatively low level for some time.
Cryptocurrency storage method
Before you buy a cryptocurrency, you need to understand how to keep your cryptocurrency safe.
In general, all exchanges provide storage space where you can store your coins safely. One does not have to share their user data, password, 2FA when holding cryptocurrency exchanges.
Paper wallet, hardware wallet, software wallet are some of the channels where one can store his cryptocurrency.
Paper wallet: The paper wallet is an offline cold storage method for storing your cryptocurrency. It prints your private and public key on a piece of paper where the QR code is also printed. One simply has to scan the QR code for one’s future transactions. Why is it safe? No need to worry about hacking your account or attacking malware. You just need to keep your piece of paper in a safe place in a locker and, if possible, keep two to three paper wallets under full control.
Hardware Wallet: A hardware wallet is a physical device where you store cryptocurrency securely. There are many forms of hardware wallet, but the most commonly used hardware wallet is USB. When keeping your cryptocurrency in a hardware wallet, you just have to keep in mind that you should not lose your hardware wallet, because once it is lost, you cannot retrieve your cryptocurrency.
A notorious incident in which a man dug 7000+ bitcoins and stored them in his hardware wallet and stored it with another hardware wallet. One day he threw away the hardware wallet in which he kept his cryptocurrency instead of damaged hardware and lost all his bitcoins.
What can be bought from cryptocurrencies in India?
Most people accept that buying and selling all kinds of cryptocurrencies is just an investment and getting a high return in the long and short term. Influential people and bitcoin investors believe that in the coming years bitcoin will dominate all fiat currencies and will be adopted as an international currency.
Dell is one of the largest e-commerce businesses that accept bitcoins as payment. Expedia and UNICEF are other examples.
In India, Sapna Book Mall accepted bitcoins as payment using the Unocoin merchant service. People booked movie tickets through BookMyShow or recharged their mobile phones using the Unocoin platform. According to the report, they have stopped the service, but plan to start again in the near future.
Cryptocurrency is one of the developing investment sectors and has given good returns on real estate, gold, stock markets, etc. in the past. You can buy cryptocurrency and keep it in the long run to get a good return or go in the short term for quick profits, as we have seen the growth of many 1000% + coins in the past. Because cryptocurrency is an unstable market and there is no government control over the industry. One must invest the amount in any cryptocurrency that one can afford to lose.
You can store your cryptocurrency in a hardware wallet, paper wallet, software wallet if you do not want to keep in the exchange where you trade.