Beginner’s Guide to Cryptocurrencies: An Overview

The first cryptocurrency was Bitcoin, created using Blockchain technology and most likely introduced in 2009 by the enigmatic figure Satoshi Nakamoto. Seventeen million bitcoins had been mined as of the time this blog was written, and it is thought that a total of 21 million bitcoin might still be mined. Ethereum, Litecoin, Ripple, Golem, Civic, and hard forks of Bitcoin, including Bitcoin Cash and Gold, are among the most widely used Crypto Insurance.

Users are urged not to invest all their funds in one cryptocurrency and to avoid investing at the height of the cryptocurrency bubble. When the crypto boom was at its height, it was noticed that prices had abruptly fallen. Due to the erratic nature of the cryptocurrency market, individuals should only invest money they can afford to lose. Furthermore, since cryptocurrencies are decentralized, no government has any authority over them.

Apple co-founder Steve Wozniak stated that Bitcoin is genuine gold and will eventually overtake all other currencies, including the USD, EUR, INR, and ASD, and become a universal medium of exchange.

Why Invest in Cryptocurrencies and Why Not?

The first cryptocurrency to exist was Bitcoin, and since then, more than 1600 different cryptocurrencies have been released, each with a unique feature.

In contrast to fiat currency, where a user needs a platform like a bank to move money from one account to another, cryptocurrencies were established on a decentralized platform, which means users don’t need a third party to transfer bitcoin from one destination to another. In addition, cryptocurrency is based on highly secure blockchain technology, and there is almost little chance that someone would hack into your account and steal your funds unless you disclose some crucial information.

At the height of the bitcoin boom, you should never purchase cryptocurrencies. Many of us purchase cryptocurrencies at their height, intending to make quick cash, but instead, we fall for the bubble’s hype and lose our money. Instead, users should conduct an extensive study before investing their money. It is always a good idea to invest in numerous cryptocurrencies rather than just one because it has been seen that some cryptocurrencies grow more, and others averagely do so. In contrast, other cryptocurrencies fall into negative territory.

Focus on Cryptocurrencies

In 2014, Bitcoin enjoyed a 90% market share, with the remaining 10% going to other cryptocurrencies. In 2017, Bitcoin continued to rule the cryptocurrency market, although its market share significantly declined from 90% to 38%, and Altcoins like Litecoin, Ethereum, and Ripple increased and dominated the market.

Purchase timing

When to purchase your preferred cryptocurrency doesn’t have any strict rules. But one must investigate the stability of the market. At the height of a cryptocurrency boom or when the price is steadily falling, you shouldn’t buy. The price must be relatively consistent at a low level for an extended period to be regarded as the optimum moment.

Paper Wallet: A paper wallet is a kind of offline, secure bitcoin storage. Your private and public keys are printed alongside a QR code on paper. To complete a transaction, all one needs to do is scan a QR code. What makes it safe? There is no need to be concerned about a malware assault or a breach into your account. You only need to keep your piece of the paper secure in a locker and, if feasible, maintain control over two to three more pieces of the paper wallet.

Hardware wallet: Your bitcoin is stored securely on a physical device called a hardware wallet. Although there are other hardware wallets, USB hardware wallets are the most popular. However, you need to bear in mind that if you store your cryptocurrency in a hardware wallet, you shouldn’t lose the wallet since once it is lost, you cannot get your bitcoin back.

Leave a Reply

Your email address will not be published.