Cryptocurrency safety
Blockchain describes how transactions are
recorded in "blocks" and timestamped. It's a rather complicated
technical process, but the result is the creation of a digital ledger of
cryptocurrency transactions that is difficult for hackers to forge.
Additionally,
transactions require two-factor authentication. For example, you may be asked
to enter your username and password to initiate a transaction. You may then
need to enter a passcode sent by SMS to your personal mobile phone.
That doesn't mean the
cryptocurrency can't be hacked. There are incidences in which hackers have
hacked cypto.
Unlike government-backed
money, the value of virtual currencies is completely determined by supply and
demand. This can create sharp swings that bring big profits to investors or big
losses. And crypto investments are subject to far less regulatory protection
than traditional financial products like stocks, bonds, and mutual funds.
Examples
of cryptocurrency/cryptocurrency
examples
Bitcoin
and Ethereum are the famous ones. There is Litecoin, Ripple,
Polkadot,
Chainlink, Mooncoin, Shiba Inu, Dogecoin, and more.
Currently, there are over
6,000 coins, according to CoinMarket limits
Bitcoin:
Founded in 2009, Bitcoin
was the first and still most widely traded cryptocurrency.
Ethereum:
Ethereum is a blockchain platform that was developed in 2015 with
its own cryptocurrency, called Ether (ETH) or Ethereum. It is the second most
popular cryptocurrency after Bitcoin.
Litecoin:
The currency is similar to bitcoin, however, it has developed
faster to enable faster transactions, as well as faster
processes.
Ripple:
It can track a variety of transactions, not
just cryptocurrency.
Cryptocurrencies other
than Bitcoin are collectively referred to as “altcoins” to distinguish
them from the original.
How to buy cryptocurrency
Basically three steps are involved. These are:
Step 1: Choosing a platform
The first step is deciding which platform to
use. Either traditional broker or dedicated cryptocurrency exchange:
Traditional brokers - These are online
brokers that tend to offer lower transaction costs but less crypto functionality.
Cryptocurrency exchanges- There are many crypto exchanges to
choose from, each offering different cryptocurrencies, wallet storage, etc.
Many exchanges charge fees based on the asset.
These
exchanges usually charge a fee or commission for each
transaction. Some
even offer significant rewards, others a
membership bonus. This policy may be
different for each exchange.
Some
of the major crypto exchanges in India are - WazirX,
CoinDCX, Coinswitch
Kuber and Unocoin - users need to sign up
with their KYC credentials,
download the app and purchase crypto.
These exchanges also help you track the
value of your
cryptocurrency and buy or sell it.
Cryptocurrencies
can be purchased on a fractional basis. This is
the case with all
cryptocurrencies.
For
example, You can buy a fraction of Bitcoin. You can own as
little as 0.00000001
BTC.
When comparing different platforms, think about the cryptocurrencies on offer, the
fees they charge, their security features, storage and withdrawal options, and
any educational resources.
Step 2: Funding your account
Most crypto exchanges
allow users to buy crypto using fiat (i.e. government-issued) currencies such
as US dollars, British pounds, or euros using a card. debit or credit.
Accepted payment methods
and deposit or withdrawal times vary between platforms.
Step 3: Placing an order
You can place an order through
your broker or exchange's web or mobile platform. If you are going to buy crypto,
you can do so by selecting 'buy', choosing an order type,
entering the amount of crypto you want to buy, and confirming the
order. The same process applies to "sell" orders
There are also other
ways to invest in crypto. These include payment services like
PayPal, Cash App, and Venmo, which allow users to buy, sell, or hold
cryptocurrencies.
There are courses
like Crypto
Quantum Leap which is a step-by-step
video course that shows you how to get started with Bitcoin and
cryptocurrencies even if you have no clue about technology.
How to earn
cryptocurrency free/where to get free cryptocurrency?
Yes,
you don't need to buy crypto to own it. You can also earn crypto
by solving cryptocurrency
equations with a calculator. This
process involves validating blocks of
data and adding transaction
records to the blockchain.
It’s estimated most Bitcoin miners end up using 60% to 80% of
what they earn from mining to cover electricity costs.
Some crypto exchanges will offer free crypto after signing up like
WazirX and on referral also.
Click here to get into crypto using WazirX
Some other ways are
- A cryptocurrency credit card operates similarly to other
rewards credit cards, except you'll gain cryptocurrency instead of cash back or
points with every swipe.
- For using their services, certain cryptocurrency exchanges
provide sign-up or referral bonuses. Make sure to read the bonus terms
and conditions carefully.
How to store cryptocurrency
Cryptocurrencies
are stored in crypto wallets, which are physical
devices or online software
used to securely store your
cryptocurrency's private key to protect it from hackers
or theft.
There are different wallet providers to
choose from. The terms “hot
wallet” and “cold wallet” are used:
· Hot wallet storage: crypto storage that uses online software to protect the private
keys.
· Cold wallet storage: hardware wallets- rely on offline electronic devices to securely
store your private keys.
Usually, old wallets tend to charge fees, while
hot wallets don't.
Cryptocurrency by market cap and cryptocurrency
prices
Cryptocurrency in India
At the
moment, there is no legislature that covers cryptocurrencies
in India. But this
doesn’t mean that owning cryptocurrencies is
illegal.
Due to the lack of
crypto regulation in India, there is no fixed structure or uniformity for
cryptocurrency trading. But with the help of cryptocurrency exchanges,
you can easily buy and sell your digital currency. WazirX, UnoCoin, CoinDCX
and CoinSwitch Kuber are popular cryptocurrency exchanges in the country.
This is WazirX cryptocurrency exchange.
You can see the different crypto and their prices.
You can buy or sell from this easily without complicated procedures.
You can even buy a part of any coin at low price.
With WazirX, you can get started on your cryptocurrency investing journey with as little as Rs 100!
Click here to get into crypto using WazirX
What can you buy with cryptocurrency?
The number of
institutions accepting cryptocurrencies is increasing, large transactions
involving them are rare. A wide variety of products can be purchased from e-commerce
sites that use cryptography.
You can buy products
from Domino’s pizza, Baskin Robbins,
Himalaya, Prestige etc.
Here are some more examples:
Technology and
e-commerce sites, Luxury goods,
Cars etc
Cryptocurrency scams
Unfortunately, cryptocurrency crime is on the
rise. Cryptocurrency scams include:
Fake websites
Fake websites with fake
testimonials and crypto jargon promise big, guaranteed returns, as long as you
keep investing.
Cryptocurrency criminals
promote non-existent opportunities to invest in digital currencies and create
the illusion of huge profits by returning old investors with funds from new investors.
"Celebrity" endorsements:
Scammers posing as
online billionaires or famous names promise to double your investment in cryptocurrencies
but steal what you deposit instead. They can also use messaging apps or chat
rooms to start rumors that a well-known businessman is supporting a particular
cryptocurrency.
Cryptocurrency hacking, where criminals break
into the digital wallets to steal it.
Tips to invest in cryptocurrency
·
Learn about
cryptocurrency exchanges before investing. Do your research before investing.
·
When you buy
cryptocurrency, you will need a way to store it. You
can keep it on an exchange or in a digital wallet. While there are
different types of wallets, each has its own advantages, technical
requirements, and security.
·
Don't put all your money in Bitcoin,
just because it's famous. There are thousands to choose from, and it's best to spread
your investment across multiple currencies.
·
Always start with small investments and study the
market thoroughly instead of blindly following anyone's advice.
·
The crypto market is very volatile,
so be prepared for some ups and downs. If you can't handle this, then
cryptocurrencies may not be the smart choice for you. Investors place
speculative bets that cause a sudden influx of money or a sudden outgo, leading
to high volatility.
One of the best ways to
stay safe online is to use full-featured antivirus software. Kaspersky
Internet Security protects you from malware infections, spyware, data theft
and your online payments with bank-grade encryption.
Does cryptocurrency have a future?
Cryptocurrencies have a potential future and even
though they have fluctuating values, these digital assets
might find a way to become an effective means of payment,
Raghuram Rajan, former Reserve Bank of India
governor, told the Reuters Global Markets Forum.
Note: Investing in
cryptocurrencies is highly risky and speculative, and the markets can be
extremely volatile. Consult with a qualified professional before making any
financial decisions. This article is not a recommendation to invest in
cryptocurrencies nor can the accuracy or timeliness of the information be
guaranteed.
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