The first cryptocurrency which comes into the existence was Bitcoin which was built on Blockchain technology and probably it was launched in 2009 by a mysterious person Satoshi Nakamoto. At the time writing this blog, 17 million bitcoin had been mined and it is believed that total 21 million bitcoin could be mined. The other most popular 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 cryptocurrencay and try to avoid investing at the peak of cryptocurrency bubble. It has get private key from recovery phrase been observed that price has been suddenly dropped down when it is on the peak of the crypto bubble. Since the cryptocurrency is a volatile market so users must invest the amount which they can afford to lose as there is no control of any government on cryptocurrency as it is a decentralized cryptocurrency.
Steve Wozniak, Co-founder of Apple predicted that Bitcoin is a real gold and it will dominate all the currencies like USD, EUR, INR, and ASD in future and become global currency in coming years.
Why and Why not Invest in Cryptocurrencies?
Bitcoin was the first cryptocurrency which came into existence and thereafter around 1600+ cryptocurrencies has been launched with some unique feature for each coin.
Some of the reasons which i have experienced and would like to share, cryptocurrencies have been created on the decentralized platform – so users don’t require a third party to transfer cryptocurrency from one destination to another one, unlike fiat currency where a user need a platform like Bank to transfer money from one account to another. Cryptocurrency built on a very safe blockchain technology and almost nil chance to hack and steal your cryptocurrencies until you don’t share your some critical information.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many of us buy the cryptocurrencies at the peak in the hope to make quick money and fall victim to the hype of bubble and lose their money. It is better for users to do a lot of research before investing the money. It is always good to put your money in multiple cryptocurrencies instead of one as it has been noticed that few cryptocurrencies grow more, some average if other cryptocurrencies go in the red zone.
Cryptocurrencies to focus
In 2014, Bitcoin holds the 90% market and rest of the cryptocurrencies holds the remaining 10%. In 2017, Bitcoin is still dominating the crypto market but its share has sharply fallen from 90% to 38% and Altcoins like Litecoin, Ethereum, Ripple has grown rapidly and captured the most of the market.
Where and How to buy Cryptocurrencies?
While some years ago it was not easy to buy 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 buy and sell bitcoin only. The users have to buy bitcoin from wallet only but not from another person. There was a price difference in buying and selling rate and users has to pay some nominal fee for completing their transactions.
In 2017, Cryptocurrency industry grew tremendously and the price of Bitcoin grown spontaneously, especially in last six months of 2017 which forced users to look for alternatives of Bitcoin and crossed 14 lakhs in the Indian market.
As Unodax and Zebpay are the two major platforms in India who were dominating the market with 90% of market share – which was dealing in Bitcoin only. It gives the chance to other organization to grow with other altcoins and even forced Unocoin and others to add more currencies to their platform.
Unocoin, one of India’s leading cryptocurrency and blockchain company launched an exclusive platform UnoDAX Exchange for their users to trade multiple cryptocurrencies apart 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 will be executed.
Other major exchanges available to trade cryptocurrencies in India are Koinex, Coinsecure, Bitbns, WazirX.
Users have to open an account in any of the exchange with signing-up with email id and submitting the KYC details. Once their account gets verified, one can start trading of coins of their choice.
Users have to research well before investing in any coins and not fall into the trap of cryptocurrency-bubble. Users must research the exchange credibility, transparency, security features and many more.
All Exchanges charge some nominal fee on each transaction. There are two types of charges – Maker fee and Taker fee. Apart from the transaction fee, one has to pay the transfer fee, if you want to transfer your cryptocurrencies in other exchange or your private wallet. The charges solely depend on the coins and exchange as the different exchange has difference price module for transferring the coins.