Introduction: To invest in cryptocurrency
The first cryptocurrency to come into existence was Bitcoin, which was built on blockchain technology and was probably launched in 2009 by a mysterious man, Satoshi Nakamoto. At the time of writing this blog, 17 million bitcoins were mined and it is believed that a total of 21 million bitcoins could be mined. The other most popular cryptocurrencies are Etherium, Lightcoin, Ripple, Golem, Civic and Bitcoin hard forks such as Bitcoin Cash and Bitcoin Gold.
It advises users not to keep all money in one cryptocurrency and to try to avoid investing in cryptocurrency bubbles. It has been noticed that prices have dropped sharply while at the top of the crypto bubble. Since cryptocurrency is a volatile market, users must invest the amount they can lose because there is no government control over cryptocurrency because it is a decentralized cryptocurrency.
Apple co-founder Steve Wozniak predicts that Bitcoin is a genuine gold and that it will dominate all currencies like USD, EUR, INR, and ASD in the future and will become a global currency in the coming years.
Why and why not invest in cryptocurrency?
Bitcoin was the first cryptocurrency to come into existence and since then about 1600+ cryptocurrencies have been introduced with some unique features for each currency.
Some of the reasons I have felt and want to share are that cryptocurrencies have been created on decentralized platforms – so users do not need a third party to transfer cryptocurrencies from one destination to another, as opposed to fiat currency where a user needs to transfer money from one account to another. Bank-like platform for. Cryptocurrency is built on a very secure blockchain technology and the chances of hacking and stealing your cryptocurrency are almost nil unless you share some important information.
You should always avoid buying cryptocurrencies at the high point of the cryptocurrency-bubble. Many of us buy cryptocurrencies at the top in the hope of making quick money and fall prey to bubble hype and lose their money. It is good to do a lot of user research before investing money. It is always better to keep your money in multiple cryptocurrencies instead of one because it has been observed that some cryptocurrencies increase more, some average while other cryptocurrencies go into the red zone.
Cryptocurrency to focus on
In 2014, Bitcoin occupied 90% of the market and the remaining 10% occupied cryptocurrency. In 2017, Bitcoin still dominated the crypto market but its share fell from 90% to 38% and Altcoins like Litecoin, Ethereum, Ripple grew rapidly and occupied most of the market.
Bitcoin still dominates the cryptocurrency market but is not the only cryptocurrency you should consider when investing in cryptocurrency. Here are some key cryptocurrencies you must consider:
Where and how to buy cryptocurrency?
Although buying cryptocurrencies was not easy a few years ago, users now have many available platforms.
In 2015, there are two major bitcoin platforms in India, Unocoin wallet and Zebpay wallet where users can only buy and sell bitcoin. Users only need to buy Bitcoin from the wallet but not from another person. There was a price difference between purchase and sale rates and users had to pay a nominal fee to complete their transaction.
In 2017, the cryptocurrency industry grew exponentially and the price of Bitcoin rose spontaneously, especially in the last six months of 2017 which forced users to look for Bitcoin alternatives and surpassed 1.4 million in the Indian market.
Since Unodax and Zebpay are the two major platforms in India that dominated the market with 90% market share – which only traded in Bitcoin. This allows other companies to grow with other altcoins and even force Unocoin and others to add more currencies to their platform.
Unocoin, one of India’s leading cryptocurrency and blockchain companies, has launched UnoDAX Exchange, an exclusive platform for its users to trade multiple cryptocurrencies in addition to trading Bitcoin in Unocoin. There was a difference between the two platforms – Unocion was only offering instant buy-sell of Bitcoin where on UnoDAX, users could place an order for any of the available cryptocurrencies and the order would be executed if it matched the recipient.
Other major exchanges available for cryptocurrency trading in India are Koinex, Coinsecure, Bitbns, WazirX.
Users need to open an account on any exchange by signing up with email id and submitting KYC details. Once their account has been verified, anyone can start trading the coin of their choice.
Before investing in a coin, users need to be well-researched and not fall into the cryptocurrency-bubble trap. Users must research the reliability, transparency, security features of the exchange and much more.
All exchanges charge a nominal fee for each transaction. There are two types of charges – maker fee and taker fee. In addition to the transaction fee, one has to pay a transfer fee if you want to transfer your cryptocurrency to another exchange or to your personal wallet. Charges depend only on coins and exchanges because different exchanges have different price modules for coin transfer.
Major Altcoins other than Bitcoin
As mentioned above, Bitcoin dominates the market with a 38% market share, followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges such as UnoDAX, Bitfinex, Kraken, Bitstamp have listed other currencies like Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and many more. If any coin matches your portfolio then you must buy it.
But, you must keep the money in the market that you can lose because the cryptocurrency market is very volatile and there is no government control over it.
When to buy?
There are no hard and fast rules when it comes to buying your favorite cryptocurrency. But we need to do research on market stability. You shouldn’t be at the top of a cryptocurrency bubble or when prices are constantly crashing. The best time is always considered when prices remain relatively low for some time.
Cryptocurrency storage methods
Before you buy any cryptocurrency you must understand how to keep your cryptocurrency safe.
Generally, all exchanges offer storage facilities where you can safely keep your coins. When you place cryptocurrencies on an exchange, no one must share their username, password, 2FA.
Paper Wallet, Hardware Wallet, Software Wallet are some of the channels where anyone can save their cryptocurrency.
Paper Wallet: Paper Wallet is an offline cold storage system for keeping your cryptocurrency. It prints your private and public keys on a piece of paper where the QR code is also printed. One has to scan the QR code for their future transactions. Why is it safe? No need to worry about your account being hacked or any malicious malware attack. All you have to do is secure your piece of paper in a locker and keep two to three pieces of paper wallet under your complete control if possible.
Hardware Wallet: A hardware wallet is a physical device where you keep cryptocurrencies safe. Hardware wallets come in many forms, but the most commonly used hardware wallet is USB. When you put your cryptocurrency in a hardware wallet, you just have to remember that you should not lose your hardware wallet because once it is lost you will not be able to recover your cryptocurrency.
A famous case where one person digs up 7000+ bitcoins, saves them in hardware wallet and puts another in hardware wallet. One day he threw away that hardware wallet so that he could save his cryptocurrency instead of the damaged hardware and he lost all his bitcoins.
What can be bought from cryptocurrency in India?
Most people assume that buying and selling a cryptocurrency is only for investment and for high returns in the long and short term. Influential and Bitcoin investors believe that in the coming years Bitcoin will dominate all Fiat currencies and be adopted as an international currency.
Dell is one of the largest e-commerce businesses that accepts Bitcoin as a payment. Expedia and UNICEF are other examples.
In India, Dream Book Mall was accepting Bitcoin as payment using Unicoin Merchant Services. People were booking movie tickets through BookMyShow or recharging their mobiles using the Unocoin platform. According to reports, they have stopped the service but are planning to resume it in the near future.
Cryptocurrency is one of the growing investment sectors and it has given excellent returns in the past compared to real-estate, gold, stock-markets etc. You can buy cryptocurrencies and hold on to the long term to get excellent returns or go short term for quick profits as we have seen many coins grow at 1000% + in the past. Since cryptocurrency is a volatile market and the government has no control over the industry. One must invest in any cryptocurrency that they may lose.
You can save your cryptocurrency in hardware wallet, paper wallet, software wallet if you do not want to keep it at the exchange from where you are trading.