It’s been more than 8 years since Bitcoin came into existence. Still, a major part of the world is still unaware of it. However, the past year has seen a lot of people knowing about cryptocurrencies and trade volumes have increased by leaps and bounds.
Cryptocurrency is basically a virtual asset that can be used as a replacement for money. We have now got more than 1000 currencies but Bitcoin is considered to be the father of all.
What are the benefits?
The best feature about these cryptocurrencies is the anonymity of transactions. That means none of the receiving or sending party is known or have any details attached to them.
It is also safe because all the transaction is in form of blocks of randomly generated numbers between two parties.
It is fast, secure and peer to peer transaction.
As noted, one approach to put resources into digital currency is by means of digital money mining. That is a substantial approach to begin contributing, if say you cherish PC gaming and have the vast knowledge of graphics cards and GPU rigs, you can invest in a rig and start generating coins out of those. However, that is an entirely other subject. The normal speculator will need to exchange USD for digital currency on a trade and maintain a strategic distance from the complexities and ventures of mining. In all cases, unless you as of now have a decent equipment with an awesome graphics card, you’ll have to put down USD forthright in any case.
We have seen people generate millions of dollars in terms of profit by trading cryptocurrencies. People invest in currencies that are expected to go up and then generate profits when the currencies do go up in value. There are two ways to get cryptocurrency:
- Buying from exchanges
Buying from exchanges:
We will be discussing the first option here i.e. buying from exchanges. For trading, you need two things.
- Exchange account
The wallet is an account where your currency is saved. Each currency has its own wallet. For bitcoin, we recommend following two wallets.
An exchange is a site where all the currencies can be purchased and traded. For example, you want to get a ripple in exchange for bitcoin, you will need to transfer bitcoin to exchange and then place a buy order for BTC-XRP pair. The currencies are usually listed as pairs of exchanges. For example, BTC-XRP pair means you can convert bitcoin to ripple and ripple to bitcoin using this. There are a lot of exchanges in the world. We recommend using following exchanges:
Things to Consider:
There are few things to know before investing or trading in cryptocurrency:
- A cryptocurrency exchange is different from the regular stock exchange. Both work differently.
- The trading is done on exchanges, few of them are listed above. However, every exchange is not available in every country, so one should check the availability of services in the region before signing up.
- Cryptocurrencies are not traceable, hence, if mistakenly wrong wallet address is sent for receiving currency, then the transaction cannot be reversed or traced. It results in a complete loss.
- In 2017, cryptocurrencies have been very volatile. The top 10 currencies are usually very stable and loss chances are very slim. However, if you invest in smaller currencies or altcoins, it is a complete gamble. You either become a millionaire or you lose all your money.
- The currencies, wallets and exchanges are online. Everything that’s online is capable of being hacked. So, make sure very strong passwords are chosen for exchange and wallets. It is recommended to back this password with 2FA authentication.
- There are limits on exchange accounts. You need to verify account through photo id if you want to keep using it and avoid the risk of being blocked.
- Do not do “margin trading” unless you know exactly what that is. Cryptocurrency is volatile and you can end up losing all your money in an instant if you aren’t careful.
How to Trade:
Trading is very simple. Just you need to follow a few steps to invest and trade cryptocurrencies.
- You can analyze all the currencies on coinmarketcap.com. It has complete details of all the currencies, price changes in last 1 hr., 24 hrs. And 7 days with a chart showing marketcap, USD rate and BTC rate over the specific period.
- Once you choose the currency you want to buy, you now have to click on it and see the exchanges where that currency is listed.
- Now, after choosing the exchange, login and deposit your BTC, LTC or Ethereum in the exchange.
- Once the currency is transferred, you can now exchange it for any currency you want at the current rate.
- When the rate rises, you can sell the currency or convert it to any other to get profits.You can see the rate rise on coinmarketcap or exchange website.
- Repeat from 1-5 again and again till you become a millionaire.