Introduction: To Invest in cryptocurrency
The first cryptocurrency that came into existence was Bitcoin that was based on Blockchain technology. It was launched in 2009 by an unknown figure named Satoshi Nakamoto. At the time writing this blog 17 million bitcoin had been mined and it is believed that a total of 21 million bitcoins might be mined. Other popular cryptocurrency are Ethereum, Litecoin, Ripple, Golem, Civic and hard forks of Bitcoin like Bitcoin Cash and Bitcoin Gold.
It is recommended not to invest all their money into one cryptocurrency and avoid investing in the heights of the cryptocurrency bubble. There has been Best crypto insurance company reports that prices have abruptly decreased when it’s on the peak of the cryptocurrency bubble. As cryptocurrency is a volatile market it is essential that investors invest only the amount which they can afford to lose since there is no oversight by any government on cryptocurrency as it is a cryptocurrency that is decentralized.
Steve Wozniak, Co-founder of Apple predicted that Bitcoin is the real gold, and will rule all currencies, including USD, EUR, INR, and ASD in future and become the world’s currency in the coming years.
Why and What’s the Reason to Should you invest in cryptocurrencies?
Bitcoin was the initial cryptocurrency to come into existence and thereafter around 1600+ cryptocurrencies has been introduced with a unique feature for each coin.
There are many reasons I have experienced and I’d like to share, cryptocurrencies have been created using a decentralized system – which means that users don’t need a third party to transfer their cryptocurrency from one account to the next one, unlike fiat currency where a user need the assistance of a platform like Bank to transfer money from one account to another. Cryptocurrency built on a very secure blockchain technology, and has almost no chance of hacking and get your cryptocurrency stolen if you don’t share your some important details.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many of us purchase cryptocurrencies at the peak in the hope to make quick money and fall victim to the hype of bubble and end up losing their money. It is best for investors to do extensive investigation prior to investing their funds. It is always beneficial to invest in multiple cryptocurrencies instead of one as it has been noticed that few cryptocurrencies grow more than others, and some are more average when other coins fall into an area of red.
Coins to Focus
As of 2014, Bitcoin is the sole holder of 90 percent market, while the rest of the cryptocurrency market holds the remaining 10 percent. The year 2017 is the last time Bitcoin remains the dominant player in the market for crypto, but its share has drastically decreased from 90% to 38% and Altcoins like Litecoin, Ethereum, Ripple has grown rapidly and captured the largest share in the overall market.
Bitcoin is still dominating the market for cryptocurrency, but it’s by no means the only cryptocurrency that should be considered when investing in cryptocurrency. The most important cryptocurrencies you should think about:
Where and how do I buy Cryptocurrencies?
In the past, it was not possible to purchase cryptocurrency, but today the buyers have numerous platforms to choose from.
In 2015, India is home to two bitcoin platforms: The Unocoin account and Zebpay wallet where users can purchase and sell bitcoins only. Users have to purchase bitcoin through their wallets only, but not from any other person. There was a slight distinction between the buying and selling rate . Users have to pay a small fee to complete their transactions.
In 2017, the Cryptocurrency industry grew tremendously and the price of Bitcoin increased rapidly, particularly during the last one-half of 2017, which caused users to search for alternatives to Bitcoin and reached 14 lakh on the Indian market.
According to Unodax and Zebpay are the two main platforms in India that dominated the market with 90% of market share – which dealt in Bitcoin only. It allows another organization to grow by using other altcoins . They even compelled Unocoin as well as other platforms to add more currencies to their platform.
Unocoin, one of India’s top cryptocurrency and blockchain companies, has established an exclusive platform UnoDAX Exchange for their users to exchange multiple cryptocurrency apart from trading of Bitcoin with Unocoin. The main difference between the two platforms was – Unocion provided immediate buy and sell of bitcoin. On UnoDAX, users can place an order of any available cryptocurrency, and if it is compatible with the recipient, the purchase will be executed.
Other exchanges that allow you to trade cryptocurrency in India are Koinex, Coinsecure, Bitbns, WazirX.
Users need to create an account at one of the exchanges by signing-up with email id and submitting the KYC information. Once their account is verified, they can begin trading in the currency of their choice.
Users have to research well before investing in any coins and not fall into the trap of cryptocurrency-bubble. The exchange’s reliability, transparency, security features and more.
All Exchanges have a small fee on each transaction. There are two kinds of charges – Maker fee and Taker fee. Beyond the transaction cost you must pay the transfer fee, in case you intend to transfer cryptocurrencies in other exchange or your personal wallet. The cost is based solely on the exchange and coins as the different exchange has an exchange rate difference module to transfer the coins.
Major altcoins other than Bitcoin
As mentioned above, Bitcoin is dominating the market, holding a 38% market share , 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 many more. If any of these coins are in your portfolio, then you should buy it.
However, you need to put the money in the market you are able to lose as it is extremely volatile and no government has control over it.
When to Buy?
There isn’t a set of rules about when to purchase your favorite cryptocurrency. But one must research the market stability. It is not advisable to invest in the midst of a crypto bubble or in times when the price is falling continually. It is best to consider investing when the price is stable relatively at a low level for some time.
Cryptocurrencies Storage Method
Before you buy any cryptocurrency, you should know how to safeguard your cryptocurrency.
Generally, all the exchanges offer a storage facility that allows you to keep your money in a safe place. You should not divulge your account details, passwords, and user IDs 2FA details, etc. when holding cryptocurrency on exchanges.
Paper Wallet, Hardware wallet, Software wallet are a few of the channels where one can store their cryptocurrency.
Paper Wallet: The paper wallet is an online cold storage method to store your cryptocurrency. It prints your personal and public key on paper, where the QR codes are also printed. One needs to take a picture of the QR code for any future transactions. Why is it safe? There is no need to be concerned about hacking into your account or the attack of any malware or virus. It is enough to keep your piece of the paper safe in a lock and, if it is possible, keep up or three pieces of paper wallet completely under control.
Hardware Wallet: Hardware wallet is a physical device where you keep cryptocurrency safe. There are many types of hardware wallet but commonly used is USB. If you keep your crypto in a hardware wallet, you need to keep in that mind that you shouldn’t lose your hardware wallet because when it’s lost, you will not be able to get your money back.
A well-known incident, where a person as mined 7000+ bitcoin and kept it in their hardware wallet and kept it in another wallet. Then one day, he threw away the hardware wallet in which it was storing his cryptocurrency in place of the broken hardware and ended up losing all his bitcoin.
What are the best cryptocurrencies to buy in India?
A majority of people think that buying and selling all cryptocurrencies is to make money and reap the high returns on a long and short-term. Bitcoin investors and influencers believe that in the coming years Bitcoin will take over all fiat currencies and will be recognized as an International currency.
Dell is among the largest online stores that accept bitcoin for payment. Expedia and UNICEF are two more examples.
In India, Sapna Book Mall was accepting bitcoin as payment via Unocoin Merchant Service. People could purchase tickets to movies via BookMyShow or recharging their smartphones using Unocoin platform. According to the report, they’ve halted the service but plan to start again in near future.
Cryptocurrency is one of the growing investment sectors and has produced better gains over gold, real estate stocks, and other markets previously. You can buy the cryptocurrency and hold it over the long term to get nice returns or go for the short-term to make a quick profit, as we’ve seen the growth of many coins at 1000%+ in past. As cryptocurrencies are unsteady and there is no regulation by the government can be imposed on the business. One must invest the amount in any cryptocurrency they are able to afford losing.