Introduction: to take a position in Cryptocurrencies
The first cryptocurrency which comes into the existence was Bitcoin which was built on Blockchain technology and doubtless, it had been launched in 2009 by a mysterious person Satoshi Nakamoto. At the time of scripting this blog, 17 million bitcoin had been mined and it’s believed that a total 21 million bitcoin might be mined. the opposite hottest cryptocurrencies are Ethereum, Litecoin, Ripple, Golem, Civic, and hard forks of Bitcoin like Bitcoin Cash and Bitcoin Gold.
It is advised to users to not put all money in one cryptocurrency and check out to avoid investing at the height of the cryptocurrency bubble. it’s been observed that price has been suddenly dropped down when it’s on the height of the crypto bubble. Since the cryptocurrency may be a volatile market so users must invest the quantity which they will afford to lose as there’s no control of any government on cryptocurrency because it may be a decentralized cryptocurrency.
Steve Wozniak, Co-founder of Apple predicted that Bitcoin may be real gold and it’ll dominate all the currencies like USD, EUR, INR, and ASD in the future and become global currency in coming years.
Why and Why Not Invest in Cryptocurrencies?
Bitcoin was the primary cryptocurrency that came into existence and thereafter around 1600+ cryptocurrencies has been launched with some unique feature for every coin.
Some of the explanations which I even have experienced and would really like to share, cryptocurrencies are created on the decentralized platform – so users don’t require a 3rd party to transfer cryptocurrency from one destination to a different one, unlike fiat currency where a user need a platform like Bank to transfer money from one account to a different. Cryptocurrency is built on really safe blockchain technology and almost nil chance to hack and steal your cryptocurrencies until you do not share your critical information.
You should always avoid buying cryptocurrencies at the part of the cryptocurrency bubble. Many folks buy the cryptocurrencies at the height within the hope to form quick money and fall victim to the hype of the bubble and lose their money. it’s better for users to try to do tons of research before investing the cash. it’s always good to place your money in multiple cryptocurrencies rather than one because it has been noticed that few cryptocurrencies grow more, some average if other cryptocurrencies enter the red zone.
Cryptocurrencies to Focus
In 2014, Bitcoin holds 90% market and the remainder of the cryptocurrencies holds the remaining 10%. In 2017, Bitcoin remains to dominate the crypto market but its share has sharply fallen from 90% to 38%, and Altcoins like Litecoin, Ethereum, Ripple have grown rapidly and captured the foremost of the market.
Bitcoin remains dominating the cryptocurrency market but is not the sole cryptocurrency which you would like to think about while investing in cryptocurrency. a number of the main cryptocurrencies you want to consider:
Where and the way to shop for Cryptocurrencies?
While some years ago it had been tough to shop for cryptocurrencies but now the users have many available platforms.
In 2015, India has two major bitcoin platforms Unocoin wallet and Zebpay wallet where users can purchase and sell bitcoin only. The users need to buy bitcoin from their wallet only but not from another person. There was a price difference in buying and selling rate and users have got to pay some nominal fee for completing their transactions.
In 2017, the Cryptocurrency industry grew tremendously, and therefore the price of Bitcoin grown spontaneously, especially in the last six months of 2017 which forced users to seem for alternatives of Bitcoin and crossed 14 lakhs within the Indian market.
As Unodax and Zebpay are the 2 major platforms in India that were dominating the market with 90% of the market share – which was dealing in Bitcoin only. It gives the prospect to other organizations to grow with other altcoins and even forced Unocoin et al. to feature more currencies to their platform.
Unocoin, one of India’s leading cryptocurrency and blockchain company launched an exclusive platform UnoDAX Exchange for his or her users to trade multiple cryptocurrencies aside from trading of Bitcoin in Unocoin. The difference between both platforms was – Unocion was providing instant buy and sell of bitcoin only whereas on UnoDAX, users can place an order of any available cryptocurrency and if it matches with the recipient, the order are going to be executed.
Other major exchanges available to trade cryptocurrencies in India are Koinex, Coinsecure, Bitbns, WazirX.
Users need to open an account in any of the exchanges by signing up with an email id and submitting the KYC details. Once their account gets verified, one can start trading of coins of their choice.
Users need to research well before investing in any coins and not fall under the trap of cryptocurrency bubble. Users must research the exchange credibility, transparency, security measures and lots of more.
All Exchanges charge some nominal fee on each transaction. There are two sorts of charges – Maker fee and Taker fee. aside from the transaction fee, one has got to pay the transfer fee, if you would like to transfer your cryptocurrencies in other exchange or your private wallet. the fees solely depend upon the coins and exchange because the different exchange has difference price module for transferring the coins.
Major Altcoins aside from Bitcoin
As mentioned above, Bitcoin is dominating the market with a 38% market share followed by Ripple, Ethereum, Litecoin, Bitcoin Cash. Exchanges like UnoDAX, Bitfinex, Kraken, Bitstamp have listed many other coins like Golem, Civic, Raiden Network, Kyber Network, Basic Attention, 0X, Augur, Monero, Tron and lots of more. If any of the coins match your portfolio then you want to pip out .
But, you want to put the cash within the market which you’ll afford to lose as the cryptocurrency market is extremely volatile and no government has control over it.
When to Buy?
There is no hard rule when to shop for your favorite cryptocurrency. But one must research the market stability. you ought to not but at the height of a cryptocurrency bubble or when the worth is crashing continuously. Always best time is taken into account when the worth is stable relatively at a coffee level for a few time.
Cryptocurrencies Storage Method
Before buying any cryptocurrency one must understand the way to keep your cryptocurrency safe.
Generally, all the exchanges provide a storing facility where you’ll keep your coins safely. One must not share their user details, password, 2FA once you hold cryptocurrency on exchanges.
Paper Wallet, Hardware wallet, Software wallet are a number of the channels where one can store their cryptocurrency.
Paper Wallet: A paper wallet is an offline cold storage method to stay your cryptocurrency. It prints your private and public key on a bit of a paper where QR code is additionally printed. One has got to just scan the QR code for his or her future transactions. Why is it safe? No got to worry about the hack of your account or attack of any malicious malware. you only got to keep your piece of the paper safe during a locker and if possible keep two to 3 pieces of paper wallet beat your complete control.
Hardware Wallet: A hardware wallet may be a physical device where you retain cryptocurrency safe. There are many sorts of hardware wallet but the commonly used hardware wallet is USB. once you keep your cryptocurrency in a hardware wallet you only got to confine that mind that you simply shouldn’t lose your hardware wallet as once it’s lost you’ll not retrieve your cryptocurrency.
One famous incident, where an individual as mined 7000+ bitcoin and stores in their hardware wallet and kept it with another hardware wallet. at some point, he threw the hardware wallet during which he stored his cryptocurrency rather than damaged hardware and he lost all his bitcoin.
What can purchase from cryptocurrencies in India?
Most of people assume that purchasing and selling of any cryptocurrencies are only for investment and getting the high returns on an extended and short-term. Influencers and bitcoin investors are believing that in the coming years Bitcoin will dominate all the fiat currencies and can be accepted as International currency.
Dell is one among the most important e-commerce business accepting bitcoin as payment. Expedia and UNICEF are other examples.
In India, Sapna Book Mall was accepting bitcoin as payment using the Unocoin merchant service. People were booking movie tickets through BookMyShow or recharging their mobile using the Unocoin platform. As per the report, they need to stop the service but getting to start again in near future.
Cryptocurrency is one of the growing investment sectors and it’s given nice returns than real-estate, gold, stock markets, etc within the past. you’ll buy the cryptocurrency and hold for long-term to urge nice returns or choose the short-term for the fast profit as we’ve seen the expansion of the many coins in 1000%+ in past. Since the cryptocurrency may be a volatile market and no control of state on the industry. One must invest the quantity in any cryptocurrency which they will afford to lose.
You can store your cryptocurrency in a hardware wallet, paper wallet, software wallet if you do not wish to carry within the exchange from where you’re trading.