If you are at all involved in financial and business trends, then chances are aware of the term cryptocurrency.
Cryptocurrency has been around for several years, but it has received tremendous popularity in recent years. Initially, it was only a topic of interest among a bunch of tech enthusiasts, but now it is trending among anyone who has even a little knowledge of finance and investments.
From the 90s, many scientists, cryptographers, and futurists have talked about a possible cryptocurrency that will take over the world by storm. But it was not before 2009 when a developer who went by the pseudonym Satoshi Nakamoto created the first decentralized cryptocurrency, Bitcoin. Gradually, these crypto coins started gaining popularity. Later on, this digital currency became the key symbol of cryptocurrency in the world. Bitcoin uses a peer-to-peer technology without having a centralized bank, and the transactions are done by the network.
Now comes the question, what exactly is a cryptocurrency, and how do they operate?
Cryptocurrency or crypto functions are based on blockchain technology. There is no physical existence of a crypto coin, it is absolutely digital. Each coin consists of a computerized dataset made with secure cryptography for secure transactions. In the online world, crypto coins are sometimes known as tokens. The matter of interest lies in the fact that cryptocurrency lets two individuals do the transaction directly with each other without the interference of a bank or any other middleman. Not only the ease of transaction, but crypto is also a good investment. It is just like investing in the stock market.
A study showed that in 2017, the value of Bitcoin was near $100, and now in 2021, it has risen to $62,000. It is enough to make people intrigued about cryptocurrency stocks.
Is cryptocurrency secure?
When talking about investments and money, security is the first thing that crosses someone’s mind. In the case of cryptocurrency, as it is made by strong, secure blockchain technology, it is rather considered safer than other investment methods. The interesting part is that the market crash does not affect the growth or fall of the crypto market.
Now we have come to the point where if one does make up their mind to invest in cryptocurrency, what should be the first step?
As the concept of digital currency is still new for many people, some financial institutions have a hard time dealing with it. We have listed down some key points for beginners in this domain, which will help you start your cryptocurrency investments.
Amount of your investment:
It is advised to take small baby steps while starting something new. The same goes for cryptocurrency. Though there does not exist a rule book that you should follow for your investment, it is always better to start small. Buying small fractions of coins at first is a good start.
Choosing the cryptocurrency:
Before starting your cryptocurrency journey, it is better to investigate the crypto world. Learn to read the candle graphs correctly, understand the market and then only make a decision.
There are nearly 8000 cryptocurrencies present in the market, each with a different market value. It will be good for you to keep checking their dynamically changing market values before deciding the one you want to invest in.
Nowadays, Bitcoin holds the top position in the crypto world. Others like Ethereum, Zcash, Ripple, etc., are also not far behind.
Choosing the Right Platform:
As cryptocurrency is nothing like real cash, hence you cannot find them in usual financial locations or banks. Certain cryptocurrency platforms are used for making currency exchanges and investments. As a beginner, you should choose the right platform to make your investments. Some factors that can affect your choice include the type of currency you choose or the region you live in.
Many platforms have a certain trading value for the currency exchange, and you should select the platform with the largest value.
Some well-known platforms you can choose from are eToro, Kraken, Binance, and Changelly.
Choosing the Right Wallet:
There are two types of wallets for cryptocurrencies. One is Hot wallet, which is used for small daily exchanges. They are useful for short-term investments.
Another one is the Cold wallet, used for long-term investments and can store a large number of coins.
Securing Your Crypto:
Securing your cryptocurrency is very important. Every time you make any investment, it is a good practice to have your VPN on. Having an encrypted network will make sure that no one can see your crypto transactions.
There are some VPNs like NordVPN or ExpressVPN that you can consider using.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.