When Bitcoin hit the price of around $20,000 in 2017 then the media strolled all around with the cryptocurrency news. Bitcoin, the most prominent cryptocurrency and the one you’re most likely to have read about, has been around since 2009. However, its just past few years that it has been over heard in market. The next generation money, currency or investing port?
You’ve probably seen the drastic value increase that cryptocurrencies have realized in 2017, and maybe heard stories of people who have become rich investing in cryptocurrencies. But the question now is: Can someone invest in cryptocurrency today and view it as a safe, profitable investment?
Like many new technologies, the price of cryptocurrencies is highly volatile at present. Investors can win, or lose, a large amount of money in a short amount of time, simply because of changes in the value of currencies like Ripple, Ethereum and Bitcoin. As well as market volatility, there are many other risk for crypto investors. But these all risk can be overcomed and might bring you a win win situation too. Before buying into any cryptocurrency it is important to do some background research into who created the coin, whether it is being traded on safe exchanges, whether their screening processes are thorough and whether they are being endorsed by affiliation with recognisable brands. Taking all these precautions are critical before choosing to invest your hard-earned money. Do your research
Learn how to trade
Primarily acquiring, trading and selling cryptocurrencies are done through exchanges, that facilitate cryptocurrency transactions, either with site or directly with people to people. Often times, picking the right exchange means figuring out exactly what you want to do as an investor, and then selecting the exchange best tailored to your specific needs.
You might want to invest in Bitcoin, Ethereum, Ripple or any other prominent cryptocurrency. But for new investor with the limit of budget one can try in new fund raising companies or ICO’s after briefly studying their whitepaper or company’s background.
Many new exchanges might have various offers like no transaction fee, no withdrawal fee and save your penny. But before choosing any crypto or exchange do thoroughly go through their company to be sure that they might not turn out to be fraud. Once you’ve chosen an exchange, you should familiarize yourself with the options that exchange offers for you. If you’re simply planning on buying and holding a cryptocurrency, you’ll only need to learn the basic buy and sell functions.
Security?
Storing cryptos are similar as storing your money in your wallet, the difference is crypto have their digital wallet system to store and withdraw whenever it needs to be traded. Cryptocurrency is entirely digital and decentralized, and ownership is proven through possession of private keys. Whoever has the private key is the owner of that cryptocurrency, and you need to keep it safe.
It is not the cryptocurrency that are secured or the wallet it gets stored,its technology in which it runs i.e Blockchain Technology. A blockchain is a series of blocks that records data in hash functions with timestamps so that the data cannot be changed or tampered with. As data cannot be overwritten, data manipulation is extremely impractical, thus securing data and eliminating centralized points that cybercriminals often target.
Every new invention or innovation has its associated concerns related to security and mass adoption. Cryptocurrency as an evolving development in the fintech industry has its own set of security and legal concerns.
However, as more and more people and companies across industries are adopting cryptocurrencies, more security shields are being created and deeper investigations into every cryptocurrency’s uses and benefits are being carried out.