Beginner’s Guide: An Introduction to Cryptocurrencies

Introduction: Investing in Cryptocurrencies

The first cryptocurrency to emerge was Bitcoin, which was built with Blockchain technology and was probably launched in 2009 by a mysterious person, Satoshi Nakamoto. At the time of writing this blog, 17 million bitcoins had been mined and it is believed that a total of 21 million bitcoins could be mined. The other most popular cryptocurrencies are Ethereum, Litecoin, Ripple, Golem, Civic and Bitcoin hard forks like Bitcoin Cash and Bitcoin Gold.

Users are advised not to put all their money into one cryptocurrency and try to avoid investing in the top of the cryptocurrency bubble. It has been observed that the price has dropped sharply when it is at the top of the cryptographic bubble. Because cryptocurrency is a volatile market, users need to invest the amount they can afford to lose, as there is no government control over the cryptocurrency as it is a decentralized cryptocurrency.

Steve Wozniak, co-founder of Apple, predicted that Bitcoin is real gold and will dominate all currencies like USD, EUR, INR and ASD in the future and become a global currency in the coming years.

Why and why not invest in cryptocurrencies?

Bitcoin was the first cryptocurrency to be born, and since then, about 1,600 cryptocurrencies have been launched with some unique feature for each currency.

Some of the reasons I’ve experienced and would like to share, cryptocurrencies have been created on the decentralized platform, so users don’t require a third party to transfer cryptocurrency from one destination to another, unlike currency. trust where a user needs a platform like Bank to transfer money from one account to another. Cryptocurrency based on a very secure blockchain technology and almost no chance of hacking and stealing your cryptocurrencies until you share your critical information.

You should always avoid buying cryptocurrencies at the highest point of the cryptocurrency bubble. Many of us buy cryptocurrencies to the fullest in the hopes of making money quickly and falling victim to the bubble exaggeration and losing our money. It is best for users to research long before investing money. It is always good to put money in multiple 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 to focus on

In 2014, Bitcoin occupied 90% of the market and the remaining 10% of cryptocurrencies. In 2017, Bitcoin still dominates the cryptocurrency market, but its share has dropped dramatically from 90% to 38% and Altcoins like Litecoin, Ethereum and Ripple have grown rapidly and captured most of the market.

Bitcoin still dominates the cryptocurrency market, but it is not the only cryptocurrency to keep in mind when investing in cryptocurrency. Some of the top cryptocurrencies to keep in mind:

Bitcoin

Litecoin

Onda

Ethereum

Tron

Civic

Golem

Currency

Where and how to buy cryptocurrencies?

While a few years ago it was not easy to buy cryptocurrencies but now users have many platforms available.

In 2015, India has two major bitcoin platforms: Unocoin wallet and Zebpay wallet where users can only buy and sell bitcoins. Users should only buy bitcoins from the wallet, but not from someone else. There was a price difference in the buying and selling rate and users have to pay a nominal fee to complete their transactions.

In 2017, the cryptocurrency industry grew enormously and the price of Bitcoin grew spontaneously, especially in the last six months of 2017, forcing users to look for Bitcoin alternatives and crossing 14 lakhs into the market. indi.

Like Unodax and Zebpay they are the two main platforms in India that dominated the market with 90% of the market share, which was only traded with Bitcoin. It gives another organization a chance to grow with other altcoins and even forces Unocoin and others to add more coins 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 apart from trading Bitcoin on Unocoin. The difference between the two platforms was that Unocion only provided instant purchase and sale of bitcoins, while on UnoDAX, users can place an order for any available cryptocurrency and, if it matches the recipient, the order will be executed.

Other important exchanges available for trading cryptocurrencies in India are Koinex, Coinsecure, Bitbns and WazirX.

Users must open an account for any of the exchanges by signing up with the email ID and submitting KYC data. Once you have verified your account, you can start trading with the currencies of your choice.

Users should research well before investing in any currency and not fall into the trap of the cryptocurrency bubble. Users need to research the credibility of the exchange, transparency, security features and more.

All exchanges charge a nominal fee for each transaction. There are two types of charges: the manufacturer’s fee and the policyholder’s fee. In addition to the transaction fee, you must pay the transfer fee if you wish to transfer your cryptocurrencies to another stock exchange or to your private wallet. Charges depend solely on currencies and exchange, as different exchange has a different price module for transferring currencies.

Non-Bitcoin primary altcoins

As mentioned above, Bitcoin dominates the market with a market share of 38% followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges like UnoDAX, Bitfinex, Kraken, Bitstamp have listed many other currencies like Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and many more. If any of the coins match your wallet, you must purchase it.

But you have to put the money in the market that you can afford to lose, as the cryptocurrency market is very volatile and no government has control over it.

When to buy?

There are no hard and fast rules when it comes to buying your favorite cryptocurrency. But market stability needs to be investigated. You shouldn’t, but at the height of a cryptocurrency bubble or when the price is continually crashing. It is always considered the best time when the price is relatively low for some time.

Cryptocurrency storage method

Before you buy any cryptocurrency, you need to understand how to keep your cryptocurrency safe.

In general, all exchanges offer a storage facility where you can store your coins securely. You do not have to share your username, password, 2FA when you have cryptocurrency in exchanges.

Paper wallet, Hardware wallet, Software wallet are some of the channels through which your cryptocurrency can be stored.

Paper Wallet: Paper wallet is an offline cold storage method to keep your cryptocurrency safe. Print your private and public key on a piece of paper where the QR code is also printed. Just scan the QR code for your future transactions. Why is it safe? You don’t have to worry about hacking your account or attacking any malicious software. Just keep your piece of paper safe in a closet and, if possible, keep two or three pieces of paper wallet all under your full control.

Hardware wallet: The hardware wallet is a physical device where you keep your cryptocurrency secure. There are many forms of hardware wallet, but the most commonly used hardware wallet is USB. When you keep your cryptocurrency in your hardware wallet, just keep in mind that you don’t have to lose your hardware wallet, because once it’s lost, you won’t be able to recover your cryptocurrency.

A famous incident, where a person extracted more than 7000 bitcoins and stored them in their hardware wallet and saved it with another hardware wallet. One day he threw away the hardware wallet where he stored his cryptocurrency instead of damaging the hardware and lost all his bitcoin.

What can be bought from cryptocurrencies in India?

Most people assume that buying and selling any cryptocurrency is just for investing and getting high returns in the long and short term. Influencers and bitcoin investors believe that in the coming years Bitcoin will dominate all fiat currencies and will be accepted as an international currency.

Dell is one of the largest e-commerce companies that accepts bitcoin as payment. Expedia and UNICEF are other examples.

In India, Sapna Book Mall accepted bitcoin as payment through the Unocoin trading service. People booked movie tickets through BookMyShow or recharged their mobile phone using the Unocoin platform. According to the report, they have stopped the service but plan to start again in the near future.

Conclusion:

Cryptocurrency is one of the fastest growing investment sectors and in the past it has yielded better returns than real estate, gold, stock markets and so on. You can buy the cryptocurrency and keep it long-term for good returns or short-term for quick profits, as we have seen the growth of many currencies at 1000% + in the past. Since cryptocurrency is a volatile market and there is no government control in the industry. It is necessary to invest the amount in any cryptocurrency that can afford to lose.

You can store your cryptocurrency in your hardware wallet, paper wallet, software wallet if you do not want to keep it on the exchange from where you are trading.