Introduction to Cryptocurrencies for Beginners

To Invest in Cryptocurrencies: Introduction

The first cryptocurrency to exist was Bitcoin, which was created using Blockchain technology and most likely introduced in 2009 by the enigmatic figure Satoshi Nakamoto. 17 million bitcoins had been mined as of the time this blog was written, and it is thought that a total of 21 million bitcoin might still be mined. Ethereum, Litecoin, Ripple, Golem, Civic, and hard forks of Bitcoin including Bitcoin Cash and Bitcoin Gold are among the other most widely used cryptocurrencies WEWE Global Review Είναι η LYOPAY αξιόπιστη;.

Users are urged not to invest all of their funds in one cryptocurrency and to try to avoid making investments at the height of the cryptocurrency bubble. When the crypto boom was at its height, it has been noticed that prices have abruptly fallen. Due to the erratic nature of the cryptocurrency market, individuals should only invest money they can afford to lose. Since cryptocurrencies are decentralised, no government has any authority over them.

Apple co-founder Steve Wozniak stated that Bitcoin is a true gold and that it will eventually overtake all other currencies, including the USD, EUR, INR, and ASD, and become a universal medium of exchange.

Why Invest in Cryptocurrencies and Why Not?

The first cryptocurrency to exist was Bitcoin, and since then, more than 1600 different cryptocurrencies have been released, each with a special feature.

In contrast to fiat currency, where a user needs a platform like a bank to move money from one account to another, cryptocurrencies were established on a decentralised platform, which means users don’t need a third party to transfer bitcoin from one destination to another. Cryptocurrency is based on an extremely secure blockchain technology, and there is almost little chance that someone would hack into your account and steal your funds unless you disclose some crucial information.

At the height of the bitcoin boom, you should never purchase cryptocurrencies. Many of us purchase cryptocurrencies at their height with the goal of making quick cash, but instead, we fall for the bubble’s hype and lose our money. Users should conduct extensive study before investing their money. It is always a good idea to invest in numerous cryptocurrencies rather than just one because it has been seen that some cryptocurrencies grow more and others averagely do so while other cryptocurrencies fall into the negative territory.

Focus on Cryptocurrencies

In 2014, Bitcoin enjoys a 90% market share, with the remaining 10% going to other cryptocurrencies. In 2017, Bitcoin continued to rule the cryptocurrency market, although its market share significantly declined from 90% to 38%, and Altcoins like Litecoin, Ethereum, and Ripple grew quickly and dominated the market.

Although Bitcoin continues to rule the cryptocurrency market, there are other cryptocurrencies that you should take into account before making a cryptocurrency investment. Here are some significant cryptocurrencies to take into account:

Bitcoin

Litecoin

Ripple

Ethereum

Tron

Civic

Golem

Monero

Where can I buy cryptocurrency, and how?

While purchasing cryptocurrency was difficult a few years ago, there are various sites available to customers today.

Unocoin wallet and Zebpay wallet are the two most popular bitcoin platforms in India in 2015, where users can only purchase and sell bitcoin. Users can only purchase bitcoin from their wallet; they cannot do so from a third party. Users had to pay a little fee to complete their transactions because the buying and selling rates differed.

The cryptocurrency market exploded in 2017, and the price of Bitcoin rose wildly, especially in the final six months of the year, forcing users to explore for alternatives. By the end of the year, Bitcoin had reached 14 lakhs in the Indian market.

Since Unodax and Zebpay, the two largest platforms in India, controlled 90% of the market and solely dealt in Bitcoin, they dominated the industry. It provides other businesses the option to develop alongside other currencies and even pressured Unocoin and others to expand the number of currencies available on their platform.

In addition to trading Bitcoin within Unocoin, one of India’s top cryptocurrency and blockchain companies, Unocoin, has developed an exclusive platform called UnoDAX Exchange for its members. The difference between the two platforms was that Unocion only offered fast buy and sell transactions for bitcoin, whereas on UnoDAX, users can place orders for any cryptocurrency that is currently in circulation, and if those orders match those of the recipient, the order will be fulfilled.

The major exchanges Koinex, Coinsecure, Bitbns, and WazirX are also available to trade cryptocurrencies in India.

Users must register with an email address and provide their KYC information in order to open an account on any exchange. One can begin trading the coins of their choice once their account has been validated.

Before purchasing any coins, investors must conduct thorough research to avoid falling victim to the cryptocurrency bubble. Users must investigate the exchange’s reliability, openness, security measures, and many other factors.

Every exchange levies a small fee for every transaction. Maker fee and Taker fee are the two different types of fees. If you wish to transfer your cryptocurrency to another exchange or your personal wallet, you must also pay the transfer charge in addition to the transaction fee. As each exchange has a separate price module for transferring coins, the fees totally depend on the currency and exchange.

Important altcoins outside bitcoin

As previously said, Bitcoin has a 38 percent market share and is followed by Ripple, Ethereum, Litecoin, and Bitcoin Cash. Many more coins, like Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron, and many more, are listed on exchanges like UnoDAX, Bitfinex, Kraken, and Bitstamp. You must purchase it if any of the coins fit your portfolio.

However, because the cryptocurrency market is so unpredictable and unregulated, you must only invest money that you can afford to lose.

Purchase timing

When to purchase your preferred cryptocurrency doesn’t have any strict rules. But one must investigate the stability of the market. At the height of a cryptocurrency boom or when the price is steadily falling, you shouldn’t buy. The price must be relatively consistent at a low level for an extended period of time to be regarded the optimum moment.

Bitcoin Storage Technique

Before purchasing any cryptocurrency, it’s important to know how to keep it secure.

Generally speaking, all exchanges offer a storage space where you may keep your funds securely. When holding cryptocurrencies on exchanges, one must not divulge their user information, password, or 2FA.

Some of the methods for storing bitcoin include paper wallets, hardware wallets, and software wallets.

Paper Wallet: A paper wallet is a kind of offline, secure bitcoin storage. Your private and public keys are printed alongside a QR code on a piece of paper. In order to complete a transaction, all one needs to do is scan a QR code. What makes it safe? There is no need to be concerned about a malware assault or a breach into your account. You only need to keep your piece of the paper secure in a locker and, if at all feasible, maintain control over two to three more pieces of the paper wallet.

Hardware wallet: Your bitcoin is stored securely on a physical device called a hardware wallet. Although there are other types of hardware wallets, USB hardware wallets are the most popular. You simply need to bear in mind that if you store your cryptocurrency in a hardware wallet, you shouldn’t lose the wallet since once it is lost, you cannot get your bitcoin back.

One well-known example included an individual who mined over 7000 bitcoins, stored them in a hardware wallet, and retained them in a separate hardware wallet. He lost all of his bitcoin when he accidentally tossed away the hardware wallet he used to hold his cryptocurrency.

What can be purchased in India with cryptocurrencies?

The majority of individuals believe that purchasing and selling any cryptocurrencies only serves as an investment that will yield great profits over both the long and short terms. Influencers and bitcoin investors are of the opinion that Bitcoin will replace all fiat currencies and become a universally recognised form of payment in the upcoming years.

One of the biggest online retailers that accepts bitcoin is Dell. Two such instances are Expedia and UNICEF.

Using the Unocoin merchant service, the Sapna Book Mall in India was taking bitcoin as payment. People were using the Unocoin site to recharge their mobile phones or BookMyShow to purchase cinema tickets. According to the article, they have paused the service but hope to resume it soon.

Conclusion:

In the past, cryptocurrency has provided better returns than real estate, gold, stock markets, etc. It is one of the investment industries that is expanding. You can invest in cryptocurrencies and hold them for a long time to earn great returns, or you can sell them quickly to make a rapid profit because many coins have experienced increases of more than 1,000% in the past. Since there is no government regulation of the bitcoin market, it is a volatile one. Any cryptocurrency that one can afford to lose money on must be purchased.