Table of Contents
- Introduction: To Invest in Cryptocurrencies
- Why Invest in Cryptocurrencies?
- Cryptocurrencies to Focus
- When To Buy?
- Cryptocurrencies Storage Method
The first cryptocurrency was Bitcoin, created in 2009 by a mysterious individual named Satoshi Nakamoto using Blockchain technology. Seventeen million bitcoins have been mined as of this writing, and 21 million bitcoins are considered possible. There are other popular forks of Bitcoin, such as Bitcoin Cash and Bitcoin Gold.
Users are cautioned not to deposit all their money in one cryptocurrency and avoid investing during the cryptocurrency bubble. Price has decreased drastically while the crypto boom is at its pinnacle. There is no government oversight over a decentralized cryptocurrency; thus, users must invest money they can afford to lose.
Steve Wozniak, the co-founder of Apple, claimed that Bitcoin would soon conquer all currencies, including USD, EUR, INR, and ASD, and become a worldwide currency.
The first cryptocurrency was Bitcoin, and since then, over 1600 cryptocurrencies have been developed, each with its own distinctive characteristic.
For example, unlike fiat currency, where a user needs a platform like a bank to move money from one account to another, cryptocurrencies are established on a decentralized network. A cryptocurrency is designed on a secure blockchain system with no possibility of hacking and theft unless you provide certain crucial information.
Always avoid purchasing cryptocurrencies during the peak of the bubble. Many of us acquire cryptocurrencies at the height, hoping to earn fast money and lose money due to the hype of the bubble. Users should perform extensive studies before spending money. It is usually better to invest in numerous cryptocurrencies than just one since some increase faster than others while others fall.
In 2014, Bitcoin had 90% of the market, with the rest of the cryptocurrencies holding 10%. However, its market share has dropped from 90% to 38%, and Altcoins like Litecoin, Ethereum, and Ripple have swiftly developed to dominate the market.
While Bitcoin currently dominates the cryptocurrency market, it is not the only cryptocurrency to consider while investing. Some important cryptocurrencies to consider:
- Stellar Lumens
- Ethereum Classic
- Bitcoin Cash
- Bitcoin SV
When purchasing your preferred cryptocurrency? If the price fluctuates, you should not buy it. The greatest moment is when the price is constant and low.
Before purchasing any cryptocurrency, learn how to keep it secure.
Generally, all exchanges provide secure storage for your money. Never divulge your user name, password, or 2FA while trading cryptocurrencies.
Cryptocurrency may be stored in a paper, hardware, or software wallet.
- Paper Wallet: A paper wallet keeps your bitcoin offline in cold storage. It writes private and public keys on a sheet of paper with a QR code. Scan QR code for future transactions. No need to worry about account hacking or virus attacks. Keep your piece of paper in a locker and two to three pieces of a paper wallet in your possession.
- Hardware Wallet: A hardware wallet protects your coin. The most frequent kind of hardware wallet is USB. If you store your bitcoin in a hardware wallet, remember that you cannot recover your cryptocurrency if you lose your hardware wallet.
Cryptocurrency is a rapidly rising investment area that has historically generated higher returns than real estate, gold, and stock markets. You may invest in a cryptocurrency and keep it for a lengthy period of time to get a decent return, or you can go short-term for a rapid profit, as several currencies have grown by 1000 percent or more in the past. Because bitcoin is a volatile market with no government oversight, One must invest just the amount of money they can afford to lose in any cryptocurrency.
If you do not intend to keep your cryptocurrency on the exchange from where you are trading, you may store it in a hardware wallet, a paper wallet, or a software wallet.