Guide in Cryptocurrencies

Introduction: To Invest in cryptocurrencies

The first cryptocurrency to come into the existence was Bitcoin that was based on Blockchain technology and probably it was launched in 2009 by the mysterious individual Satoshi Nakamoto. When I was writing this blog the Bitcoin blockchain had already 17 million bitcoin been mined, and it is believed that a total of 21 million bitcoins are being mined. The other most popular cryptocurrencies are Ethereum, Litecoin, Ripple, Golem, Civic and hard forks of Bitcoin such as Bitcoin Cash and Bitcoin Gold.

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It is advised to users to avoid putting all their funds in one crypto and try to avoid investing in the heights of the cryptocurrency bubble. It has been noted that price has been suddenly reduced at the highest point of the cryptocurrency bubble. Because cryptocurrency is highly volatile it is advised that investors only invest only what they are able to risk losing. There is no central government control over cryptocurrency since it is not centralized.

Steve Wozniak was the co-founder of Apple. He predicted that Bitcoin will become a real gold, and will overtake all currencies such as USD, EUR and INR in the near future. It will also become an international currency in the next few years.

What are the reasons to invest in cryptocurrencies

Bitcoin was the very first cryptocurrency to be invented. Since then, more than 1600+ cryptocurrency have been created. Each coin has a distinctive characteristic.

There are a few reasons that I’ve experienced and want to share are that cryptocurrencies have been created using a decentralized platform to ensure that users don’t need an external party to transfer cryptocurrency from one destination to another, as opposed to fiat currencies, where users require a platform similar to a Bank to transfer money from one account to another. Cryptocurrency is built on safe blockchain technology and almost no chance of hacking and steal your cryptocurrencies until you’ve kept your important details.

You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. A lot of people purchase cryptocurrencies at their peak hoping to gain fast cash. But, they usually are enticed by the hype and end up losing their cash. Users should do extensive research before putting their money into cryptocurrencies. It is always beneficial to invest in several cryptocurrencies, rather than one. This is because it has been found that not all cryptocurrency grow in the same way, and certain cryptocurrency tend to be in the red.

Cryptocurrencies to Focus

In 2014, Bitcoin holds the 90% market and other cryptocurrencies hold the remaining 10 percent. Although Bitcoin remains the dominant cryptocurrency market but its share has dipped drastically from 95 percent to 38% in 2017. Altcoins like Ripple, Ethereum, and Litecoin have seen rapid growth and captured most of the market.

Bitcoin is still dominating the market for cryptocurrency, but it’s not the only cryptocurrency which is worth considering when investing in crypto. Some of the major cryptocurrency you should consider:

Bitcoin

Litecoin

Ripple

Ethereum

Tron

Civic

Golem

Monero

Where and how to buy cryptocurrency

It was not easy to buy digital currencies, today’s users have numerous platforms to choose from.

In 2015, India has two major bitcoin platforms Unocoin wallet and Zebpay wallet where users can buy and sell bitcoin only. Customers can only purchase bitcoin using their wallet, and not from any other. The price difference between purchasing and selling bitcoin was significant. The users also required a small 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 other Bitcoins and eventually pushed it to 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 gives other companies the chance to grow by incorporating altcoins and sometimes even force Unocoin to add other currencies on their platform.

Unocoin is India’s top cryptocurrency and blockchain company. They have created UnoDAX Exchange, a platform that lets users trade multiple currencies in addition to Bitcoin. Unocion provided instant bitcoin purchase and sell, whereas UnoDAX allows users to make orders for any cryptocurrency they want and, if the recipient matches, the order is executed.

Other major exchanges available to trade cryptocurrencies in India are Koinex, Coinsecure, Bitbns, WazirX.

Users must open an account on any exchange by signing-up with email id and submitting the KYC details. After their account is verified then they can exchange any coins they want to.

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 legitimacy and safety of every exchange.

All Exchanges charge some nominal fee for every transaction. There are two kinds of charges – Maker fee and Taker fee. Along with the transaction cost, one has to pay the transfer fee when you plan to transfer your cryptocurrency in the other exchange or to your personal wallet. As each exchange has a different price structure to transfer coins, the charges are dependent on the currency and the exchange.

Major altcoins that are not Bitcoin

Bitcoin is the dominant market player with a 38% share which is being followed by Ripple and Ethereum. Ripple, Ethereum is Litecoin, Bitcoin Cash, and many more. UnoDAX and Bitfinex have many coins listed that include Tron, Tron, Kraken, Bitstamp, Ripple, Ethereum, Litecoin Kraken, Bitstamp, Basic Attention, Augur, Monero and Tron. You must purchase any coins that match your portfolio.

But, you must place your money into the market that you are able to lose because the cryptocurrency markets are extremely unstable and there is no government any control over it.

When should you buy?

There is no set rule for when to purchase your favorite cryptocurrency. But one must research the market stability. Don’t invest during the height of a crypto bubble or when prices crash repeatedly. It is recommended to invest when the price remains stable and relatively low for a period of time.

Cryptocurrencies Storage Method

It is essential to know how to safeguard your cryptocurrency before buying any cryptocurrency.

In general, all exchanges have a storage facility to keep your cash safely. One must not share their username, password, or user information with anyone. 2FA when you have cryptocurrency on exchanges.

There are many ways to store your currency The most popular are: paper wallet, hardware wallet, and Software wallet.

Paper Wallet: A paper wallet is an offline cold storage system to keep your cryptocurrency. It prints your public and private key on a paper where it also prints a QR code. For future transactions, it is necessary to scan the QR code. Why is it safe? You don’t have to worry about hacking your account or the attack of malware or viruses. You just need to keep the paper in a secure place and if possible keep two to three pieces of paper in your wallets under complete control.

Hardware wallet: A physical item which protects your crypto. There are various types of hardware wallets, but the most commonly employed is USB. When you keep your money in a hardware wallet you just need to be aware that you shouldn’t lose your hardware wallet since when it’s lost, you can not retrieve your cryptocurrency.

One famous incident, where a person as had mined over 7000 bitcoins and stores in their hardware wallet and kept it with another hardware wallet. He was unable to access all his bitcoin when he accidentally destroyed his hardware wallet, in which he kept the cryptocurrency instead of the broken hardware.

What are the top cryptocurrency to purchase in India?

Many people believe that selling and buying cryptocurrency is for investment purposes and to earn high returns in the short and long-term. Bitcoin experts and investors believe that Bitcoin will become the dominant fiat currency in the upcoming years and will be recognised as a currency that is internationally accepted.

One of the largest online companies accepting bitcoin payment is Dell. Expedia and UNICEF give other examples.

In India, Sapna Book Mall was accepting bitcoin as payment by using the Unocoin merchant service. Customers were able to book tickets for movies through BookMyShow or charging their mobiles using Unocoin platform. According to the report they have stopped the service but they plan to resume it in the near the future.

Conclusion

Cryptocurrency is one of the most popular investment areas and has yielded better returns than real-estate, gold, stock-markets, etc in the past. It is possible to buy cryptocurrency and hold for long-term to reap great returns or opt for the short-term option to earn a quick profit as we have witnessed the growth of many coins at 1000% or more in past. The market for cryptocurrency is highly volatile and there isn’t any regulation by the government. It is essential to invest in any cryptocurrency which they are able to afford losing.

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