Introduction: How to Invest in Cryptocurrencies
Bitcoin was the first cryptocurrency to come into existence. It was developed on Blockchain technology. This was probably launched by Satoshi Nakamoto in 2009. It was estimated that 17 million bitcoin were mined at the time of writing this blog. There are currently 21 million bitcoin mined. Other popular cryptocurrencies include Ethereum, Ripple and Golem, Ripple and Civic, as well as hard forks such Bitcoin Cash or Bitcoin Gold.
Users are advised not to invest all of their money in one cryptocurrency. Also, avoid investing during the cryptocurrency bubble’s peak. When the cryptocurrency bubble is at its peak, it has been seen that the price drops suddenly. Because cryptocurrency is volatile, users should only invest what they can afford to lose. There is no government control over cryptocurrency because it is decentralized.
Steve Wozniak was the co-founder of Apple. He predicted that Bitcoin would be a true gold, and will overtake all currencies such as USD, EUR and INR in future. It will also become a global currency in the coming years.
Why and why not invest in cryptocurrencies
Bitcoin was the first cryptocurrency to be created. Since then, around 1600+ cryptocurrencies have been launched. Each coin has a unique feature.
One of the reasons I’ve experienced and would love to share is that cryptocurrencies were created on a decentralized platform. Users don’t need to transfer cryptocurrency to other destinations. This is in contrast to fiat currencies, which require users to use a platform such as Bank to transfer money between accounts. The blockchain technology that is used to create cryptocurrency makes it almost impossible for hackers and thieves to steal your cryptocurrency.
You should always avoid buying cryptocurrencies at the high point of cryptocurrency-bubble. Many people buy cryptocurrencies at their peak hoping to make quick cash. However, they often fall for the hype and lose their money. Users should do extensive research before they invest their money. It is always a good idea to invest in several cryptocurrencies, rather than one. This is because it has been observed that while some cryptocurrencies tend to grow faster, others may fall in the red zone.
Focus on Cryptocurrencies
Bitcoin held the 90% market in 2014 while the rest of the cryptocurrencies hold the remaining 10%. While Bitcoin still dominates the crypto market, its share has fallen sharply from 90% to 38% in 2017. Altcoins such as Ripple, Ethereum, and Litecoin have grown quickly and captured most of the market.
While Bitcoin remains the dominant cryptocurrency, it is not the only one you should consider when investing in cryptocurrency. Here are some of the most important cryptocurrencies to consider:
Where and how to buy Cryptocurrencies
It was difficult to purchase cryptocurrencies a few years ago, but it is now much easier.