Beginner’s Guide: Introduction to Cryptocurrency

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Introduction: Investing in cryptocurrencies

The first cryptocurrency to come into existence was Bitcoin which was built on blockchain technology and was probably launched in 2009 by a mysterious man Satoshi Nakamoto. At the time of writing this blog, 17 million bitcoins were mined and it is believed that a total of 21 million bitcoins could be mined. The other most popular cryptocurrencies are Etherium, Litcoin, Ripple, Golem, Civic and Bitcoin hard forks such as Bitcoin Cash and Bitcoin Gold.

It is advised to users not to keep all the money in one cryptocurrency and try to avoid investing in the cryptocurrency bubble peak. It has been noticed that prices have dropped sharply while crypto bubbles are at their peak. Since cryptocurrency is an volatile market, users must invest the amount they can lose because there is no government control over cryptocurrency because it is a decentralized cryptocurrency.

Apple co-founder Steve Wozniak predicted that Bitcoin is a real gold and that it 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 cryptocurrency?

Bitcoin was the first cryptocurrency to come into existence and then around 1600+ cryptocurrencies were introduced with some unique features for each currency.

Some of the reasons I’ve felt and want to share are that cryptocurrencies are built on decentralized platforms – so users don’t need a third party to transfer cryptocurrencies from one destination to another, unlike fiat currencies where users need a bank-like platform from one account to another. To transfer money. Cryptocurrency built on a very secure blockchain technology and almost zero chance of hacking and stealing your cryptocurrency unless you share some of your important information.

You should always avoid buying cryptocurrencies at the top of the cryptocurrency-bubble. Many of us buy cryptocurrencies in the hope of making quick money and fall prey to bubble fraud and lose their money. It is good for users to do a lot of research before investing money. It is better to keep your money in multiple cryptocurrencies instead of one, as it has been observed that some cryptocurrencies increase more, some average if another cryptocurrency goes into the red zone.

To focus on cryptocurrency

In 2014, Bitcoin occupied 90% of the market and the remaining 10% of the rest of the cryptocurrency. In 2017, Bitcoin still dominated the crypto market but its share fell sharply from 90% to 38% and Altcoins like Litecoin, Ethereum, Ripple grew rapidly and occupied most of the market.

Bitcoin still dominates the cryptocurrency market but you don’t have to consider it the only cryptocurrency when investing in cryptocurrency. Here are some key cryptocurrencies you must consider:

Bitcoin

Litecoin

Wavy

Etherium

Tron

Citizens

Golem

Mind you

Where and how to buy cryptocurrency?

Although buying cryptocurrency a few years ago was not easy but now users have many available platforms.

In 2015, India has two major bitcoin platforms Unocoin Wallet and JebPay Wallet where users can simply buy and sell Bitcoin. Users only need to buy Bitcoin from the wallet but not from another person. There was a price difference between the buying and selling rates and users had to pay a nominal fee to complete their transaction.

In 2017, the cryptocurrency industry grew exponentially and the price of Bitcoin increased spontaneously, especially in the last six months of 2017 which forced users to look for Bitcoin alternatives and surpassed 1.4 million in the Indian market.

Since Unodax and Zebpay were the two main platforms in India that dominated the market with 90% market share – which only worked on Bitcoin. This allows other organizations to grow with other altcoins and even forces Unocoin and others to add more currency to their platform.

Unocoin, one of the leading cryptocurrency and blockchain companies in India, has launched UnoDAX Exchange, a special platform for its users to trade multiple cryptocurrencies in addition to Bitcoin trading on Unocoin. There was a difference between the two platforms – Unocion was only providing instant buy-sell bitcoin when users on UnoDAX could order any available cryptocurrency and if it matched the recipient, the order would be executed.

Other major exchanges available for trading cryptocurrencies in India are Coinex, CoinSecure, BitBNS, WazirX.

Users need to sign-up with email id and submit KYC details to open an account at any cost. Once their accounts have been verified, anyone can start trading their favorite coins.

Users need to research well before investing in any coin and do not fall into the trap of cryptocurrency-bubble. Users must research the reliability of the exchange, transparency, security features and much more.

All exchanges charge a nominal fee for each transaction. There are two types of charges – maker fee and taker fee. In addition to the transaction fee, one has to pay a transfer fee if you want to transfer your cryptocurrency to another exchange or your personal wallet. Charges depend only on the currency and the exchange because there is a difference in value for the transfer of currency in different exchanges.

Major Altcoins other than Bitcoin

As mentioned above, Bitcoin dominates the market with 38% market share, followed by Ripple, Etherium, Litcoin, Bitcoin Cash. Exchanges like UnoDAX, Bitfinex, Kraken, Bitstamp list Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and many more. If any coin matches your portfolio then you must buy it.

But, you must keep the money in the market that you can afford to lose because the cryptocurrency market is very volatile and there is no government control over it.

When to buy?

There are no hard and fast rules when it comes to buying your preferred cryptocurrency. But one must do research on market stability. You shouldn’t be at the peak of cryptocurrency bubbles or when they are constantly crashing. The best time is always considered when the price remains stable at a relatively low level for some time.

Cryptocurrency storage methods

Before buying a cryptocurrency, one must understand how to keep your cryptocurrency safe.

Generally, all exchanges offer storage facilities where you can keep your coins safe. They should not share their username, password, 2FA when you place cryptocurrencies on the exchange.

Paper Wallet, Hardware Wallet, Software Wallet are some of the channels where one can save their cryptocurrency.

Paper Wallet: Paper Wallet is an offline cold storage system for keeping your cryptocurrency. It prints your private and public keys on a piece of paper where the QR code is also printed. All they need to do is scan the QR code for future transactions. Why is it safe? No need to worry about your account being hacked or being attacked by a malicious malware. All you have to do is keep your piece of paper safe in a locker and keep two to three pieces of paper wallet under your complete control if possible.

Hardware Wallet: A hardware wallet is a physical device where you keep cryptocurrencies safe. There are many forms of hardware wallet but the most commonly used hardware wallet is USB. When you keep your cryptocurrency in a hardware wallet you just have to remember not to lose your hardware wallet because once it is lost you will not be able to recover your cryptocurrency.

A famous incident, where a person digs 7000+ bitcoins and saves them in a hardware wallet and puts it with another hardware wallet. One day he throws the hardware wallet where he stores his cryptocurrency instead of the damaged hardware and he loses all his bitcoins.

What can you buy from cryptocurrency in India?

Most people assume that buying and selling any cryptocurrency is only for investment and to get higher returns in the long and short term. Influential and Bitcoin investors believe that in the coming years Bitcoin will dominate all Fiat currencies and be adopted as an international currency.

Dell is one of the largest e-commerce businesses accepting Bitcoin as a payment. Expedia and UNICEF are other examples.

In India, Dream Book Mall was accepting Bitcoin as payment using Unocoin Merchant Service. People were booking movie tickets through BookMyShow or recharging their mobiles using the Unocoin platform. According to reports, they have stopped the service but plan to resume in the near future.

Conclusion:

Cryptocurrency is one of the growing investment sectors and it has given excellent returns compared to real estate, gold, stock-markets, etc. in the past. You can buy cryptocurrencies and hold on to them in the long run to get excellent returns or go for quick profits in the short term as we have seen many coins grow at 1000% + in the past. Since cryptocurrency is an unstable market and the government has no control over the industry. They need to invest in any cryptocurrency that they can afford to lose.

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

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