This article will give a detailed structured about cryptocurrencies for beginners. Globally today, cryptocurrencies have pretty much been a topic of intense discussion in the last few years. We have heard major news of people becoming overnight millionaires. As there have been stories of people who lost hundreds of thousands of dollars hoping to make it quick with this system.
When you desire to venture into a new area, it is always best practice to come to terms with the ways of doing things. In order to make the best out of the available opportunities in this area. Hence, it is pertinent to understand what cryptocurrencies are and how they work.
What is cryptocurrency?
Cryptocurrency is a digital currency. They used to make payments of any value without fees. It runs on the blockchain, which is a decentralized ledger kept running by “miners”. These miners use powerful computers crunch transactions and are rewarded in bitcoins.
If you are looking forward to safe investment in cryptocurrency, then sit tight and take the instructions in this article. Our main of putting up this guide is to help educate investors as much as possible to guide them in investing profitably and to reduce speculation in the market space.
The very fact that you are looking at this article at this time shows that you are interested in investing in cryptocurrencies. These immutable and exchangeable cryptographic token is has the potential to become hard and non-manipulatable money for the entire world. Those who are behind the advocacy of this system see a future in which Bitcoin or other cryptocurrencies will substitute Euro, Dollar and so on and eventually create the first free and hard world currency.
Here Are The Most Common Cryptocurrencies
1. Bitcoin: Bitcoin happens to be the first among all other cryptocurrencies. It is as well the most commonly traded till date. Bitcoin was developed in the year 2009 by Satoshi Nakamoto, a very mysterious figure who developed its blockchain. Bitcoin has a market capitalization of around $172 billion as of this June 2019.
2. Ethereum: Ethereum came into existence on the year 2015. It is the second most popular and valuable cryptocurrency. Ether has a market capitalization of around $30 billion as of June 21st 2019. The Ethereum blockchain uses Ether as the currency token. It indeed had a turbulent journey.
After experiencing a major hack in 2016, Ether split into two currencies. While its value at one stage it reached as high as $1,300. Though it has previously crashed briefly to as low as 10 cents. In 2017, it proved hugely popular as a launch pad for other cryptocurrencies. These cryptocurrencies make use of the ethereum blockchain’s code.
3. Ripple: Ripple was founded in 2012, a distributed ledger system. Ripple is more than a cryptocurrency. It tracks more than one trascations. It has a market capitalisation of around $18 billion as 21st June 2019. The company that is behind Ripple has worked with banks and financial institutions, including Santander.
4. Litecoin: Litecoin was released via an open-source client on GitHub on October 7, 2011 by Charlie Lee, a Google employee and former Engineering Director at Coinbase. It is known that the Litecoin network went live on October 13, 2011. This currency which is almost a bitcoin look alike. But has gone ahead to develop new innovations like faster payments and processes which allow many more transactions. It has a market capitalization of around $8 billion as 21st June 2019.
How To Invest in Cryptocurrency
Investing in cryptocurrencies for beginners requires a detailed knowledge of blockchain. The question most potential cryptocurrency investors would likely ask is how much to invest in the sector. The ever expanding crypto universe is prone to market fluctuations, because of its relatively infancy state. Hence, investors should always apply caution toward their investments.
With these facts in mind, it’s very pertinent to consider several factors:
How to Invest in Bitcoin and other Cryptocurrencies?
First thing first. To invest in cryptocurrency, you must first know and decide where to buy cryptocurrency from. Here are a number of ways to do this.
Cryptocurrency exchanges like Etoro, Bittrex, LocalBitcoins, and Coinbase are some of the popular exchanges where one can buy cryptocurrencies and cash out into local currency.
Another great choice for fiat purchases is Luno.com which is an emerging Coinbase alternative serving important regions in Europe, Asia, and Africa. Luno sells Bitcoin and Ethereum. They have a great web platform and mobile app, both with full functionality. The Luno wallet is still offered even in nations like the US where the service is not available.
Cryptocurrencies for beginners should always be vary about verification. You might need to verify your identity before you can trade on an exchange. The verification process depends on the exchange and the rules and regulations for whatever country you reside in. This process may take a few hours to a couple of days to be completed. You may need to take your time to read and understand the verification process before committing to an exchange. You may be required to to upload ID like driver’s license in some cases, while some others will even have their customer support call you before removing your transaction limits.
This is another important consideration when buying cryptocurrency. Cryptocurrencies for beginners should ascertain if the cryptocurrency exchange will accept your preferred payment method. It is notoriously easy to initiate a chargeback for credit card payments, so exchanges are reluctant to let you buy cryptocurrency with them.
If you are using an obscure payment method, you always have the option of local trades or Localbitcoins.com. You can buy cryptocurrency on the exchange platform from other traders, and this means you can buy Bitcoins with everything from direct bank deposits to Amazon gift vouchers.
Disclaimer: The information in this article must not be taken as a professional advice as we are not a financial institution. We only provided these information here for educational purposes only. So, you can go further to make your own findings.