Overview: Invest in cryptocurrency
The first cryptocurrency that comes into the existence was Bitcoin that was based on Blockchain technology. It was introduced in 2009 by the mysterious figure named Satoshi Nakamoto. At the time of writing this blog 17 million bitcoin had been mined, and it is believed that total 21 million bitcoins might 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 recommended to not put all money into one cryptocurrency and try to avoid investing during the peak of cryptocurrency bubble. It has been noticed that prices have suddenly decreased when it’s on the peak of the cryptocurrency bubble. Because cryptocurrency market is volatile, therefore investors must only invest the amount they are able to lose, as there is no control of any authority on cryptocurrency since it is a decentralized cryptocurrency.
Steve Wozniak, Co-founder of Apple predicted that Best crypto insurance company Bitcoin is a real gold and that it will take over all the currencies like USD, EUR, INR, and ASD in the near future, and will become a the world’s currency in the coming years.
Why and why not To Invest in Cryptocurrencies?
Bitcoin was the first cryptocurrency that came into existence. Throughout the years, 1600+ cryptocurrencies has been released with an exclusive characteristics for each one.
There are a few reasons that I’ve encountered and want to share are that cryptocurrency was created through a decentralized platform so users don’t require an intermediary to transfer money from one location to another one, in contrast to fiat currencies where a user need the assistance of a platform like Bank to transfer funds across accounts from one to the other. Cryptocurrency is built on secure blockchain technology that has virtually nil chance to hack and get your cryptocurrency stolen if you’re not sharing critical information.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many of us purchase cryptocurrencies at the peak in hopes of making quick cash, but then fall to the hype surrounding bubbles and lose their funds. It is best for investors to conduct a thorough research prior to investing their money. It is always advisable to invest in more than one cryptocurrency because it has been discovered that certain cryptocurrencies have higher growth than others and that some of them are less stable when other cryptocurrencies go in an area of red.
Coins to Focus
Since 2014 Bitcoin holds the 90 percent market share, and the rest of cryptocurrency holds the remaining 10%. The year 2017 is the last time Bitcoin is still dominating the crypto market , but its share has slowed from 90 percent to 38%. altcoins like Litecoin, Ethereum, Ripple have seen rapid growth and capture the largest share in the overall market.
Bitcoin is still dominating the market for cryptocurrency, but it’s not the only cryptocurrency should be considered when investing in cryptocurrency. Some of the major cryptocurrencies that you should consider are:
Where and how to purchase Cryptocurrencies?
When it was a few years ago, it was difficult to purchase digital currencies, today’s users have many available platforms.
The year 2015 is the first time India includes two of the largest bitcoin platforms the Unocoin wallet , and Zebpay wallet that allows users to buy and sell bitcoins exclusively. Users must purchase bitcoin from wallet only but not from a third party. There was a slight differing between selling and buying rates and buyers have to pay a nominal amount to complete their transactions.
In 2017, the cryptocurrency sector was booming and the value of Bitcoin has risen rapidly, in particular in last six months of 2017 . This made people look for alternatives to Bitcoin and crossed 14 lakhs for the Indian market.
As Unodax and Zebpay are the two major platforms in India who were dominating the market with over 90 percent market share that was based on Bitcoin only. This gives opportunities to another organization to grow by using alternative altcoins. It also forces Unocoin and other companies to add additional currencies to their platform.
Unocoin one of the most prominent Indian blockchain and cryptocurrency companies, launched an exclusive platform UnoDAX Exchange for their users to trade multiple cryptocurrencies apart from trading of Bitcoin in Unocoin. The main difference between the two platforms was that Unocion was providing instant purchase and sale of bitcoin, whereas on UnoDAX users are able to place an order of any available cryptocurrency and if it matches with the recipient, the purchase is executed.
Other major exchanges available for trading cryptocurrencies in India include Koinex, Coinsecure, Bitbns, WazirX.
Customers must create an account at any of the exchanges by signing-up with email id and submitting KYC information. Once their account is confirmed, the user can start trading with 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 as well as transparency, security, and more.
All Exchanges have a small fee for each transaction. There are two kinds of charges : Taker fee and Maker fee. Along with the transaction fee the other charge is the transfer fee, in case you want to transfer your coins to an exchange other than your personal wallet. The costs are dependent on the exchange and coins as the different exchange has differing price options for moving the coins.
Major Altcoins Other Than Bitcoin
As previously 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 including Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and numerous others. If any of the coins is in your portfolio, you should purchase it.
But, you must put your money in the market where you have the money to lose since the it is extremely volatile , and no one has the power to regulate it.
When Should I Buy?
There is no set rule about when to purchase your favorite cryptocurrency. However, it is important to research market stability. Don’t invest when the market is at the top of a cryptocurrency bubble , or when prices crash continuously. The ideal time to invest in cryptocurrency is when the price has remained steady at a lower value for a period of time.
Cryptocurrencies Storage Method
Before investing in any cryptocurrency, you must understand how to keep your cryptocurrency safe.
The majority of exchanges provide the storing facility in which you can store your currency safely. You should not divulge your user details, password, 2FA, or account details when holding cryptocurrency on exchanges.
Paper wallet, hardware wallet Software wallet are a few of the avenues through which one can store their cryptocurrency.
Paper Wallet: The paper wallet is an offline cold storage method to store your cryptocurrency. It prints your public and private keys on paper on which a you can also print a QR code. You just need to look up the QR code to verify their future transactions. How secure is it? There is no need to be concerned about hacking your account, or the attack of any malware or virus. It is enough to keep the piece of paper in a safe and if possible keep two or three pieces of paper wallets under complete control.
Hardware Wallet: Hardware wallet is a physical device where you keep cryptocurrency safe. There are a variety of hardware wallets but the most widely used is USB. When you have your cryptocurrency in a hardware wallet, you must keep in your mind that you should not loose your hardware wallet, as after it’s gone, you will not be able to retrieve your cryptocurrency.
One famous incident, where one person has mined more than 7000 bitcoins and kept them the bitcoin in their wallets that they have built and kept it in another hardware wallet. One day he threw the hardware wallet in which he stored his cryptocurrency instead of damaged hardware and lost all of his bitcoin.
What are the best cryptocurrencies to buy in India?
A majority of people think that the buying and selling of cryptocurrency is only to make money and reap the highest returns in both a short-term and long-term. Bitcoin investors and influencers are betting that in the coming years Bitcoin will take over all fiat currencies and eventually be recognized as an International currency.
Dell is among the largest online businesses that accept bitcoin as a payment method. Expedia and UNICEF are other examples.
In India, Sapna Book Mall accepted bitcoin payments by using the Unocoin Merchant Service. The customers were purchasing tickets to movie shows via BookMyShow or charging their mobiles using Unocoin platform. According to the report, they’ve halted the service but planning to start again in near the future.
Cryptocurrency is one of the most popular investment areas and has provided better returns than real-estate, gold, stock-markets, etc previously. You can buy the cryptocurrency and then hold it for a long time to reap great returns, or go for the short-term for the quick profit as we have witnessed the growth of many coins at 1000%+ over the past. The cryptocurrency market is unsteady and there is no regulation by the government can be imposed on the industry. One must invest the amount that they can afford to lose.