Whether you like or dislike Bitcoin, the crypto currency is here to stay. The world is shifting towards the virtual, not only because the technology is advancing but because it makes communication easier and faster with also a certain space for freedom.
While India is still wondering in 2018 whether crypto currencies are good or not, the launch of an altcoin by Jio shows the future is open to it. And why not? All over the world, crypto currency is being accepted. Real estate is being sold; Microsoft and Lamborghini accept Bitcoin for their transactions and of course, we can also buy our pizza. Some people even take their salary in Bitcoins.
With the phenomenal rise of Bitcoin in December 2017, it became the most valued currency in the world. One Bitcoin cost USD 17,900! Since then, Bitcoin and other cryptos have attracted attention as a valuable trading and investment option.
If you are a newcomer or have just started to explore the crypto-world, you must be sure to take notice of these very basic but critical factors –
#1 Know what it is
Be it Bitcoin, Ethereum, Litecoin or any altcoin – all of these exist only digitally and not physically. Bitcoin was launched in Jan 2009 by Satoshi Nakamoto as a virtual currency which will help in peer to peer transactions. The main thing about a crypto currency is its white paper.
For a newcomer it all seems a bit confusing. Actually it’s the ‘Farmville’ and ‘Second Life’ coming to life as virtual reality.
To make it simple, you can buy a crypto currency like Bitcoin using a real currency like INR or USD. You can use these Bitcoins to trade like you would do to a share. But it is more flexible than a share. You can partly sell or buy anytime and use it to buy things online.
How Bitcoin or any altcoin will work depends upon the rules and terms set in the white paper which is released with the launch of the coin. Any crypto currency other than Bitcoin is commonly called altcoin.
The best part about crypto currency is that it is decentralized. It means one world without any borders, races or dominating parties. Every transaction is transparent.
#2 You have to buy or sell it through an exchange
To buy or sell a crypto currency you have to go through an exchange. In India there are some of them like Zebpay, Koinex and Coinome. Internationally, Binance and Kucoin are very trusted ones.
Buying or selling cryptos is easy and all of these transactions are done online through website or mobile app.
#3 Make sure the exchange is secure
All over the world people are getting duped by false exchanges and so-called crypto agents. The reason is that people are jumping into this investment without knowing anything about it. To make sure the exchange is valid and not a scam, see reviews of what others have said. It’s all online and open for everyone.
An exchange in India will always ask for a KYC (know-your-client) while others may ask for AML (anti-money-laundering) processes for security. These are the right procedures. Also the security of the exchange is critical. They should have two-step authentication to protect your coins from online theft.
Then you must keep your crypto currency details very, very securely. Do not use public wifi or computers while using cryptos. Once anybody hacks and transfers your coins, it is irreversible unlike the credit card fraud. Later, you might have buy safety hardware like the Ledger Nano.
#4 There are charges
Every time you buy or sell, there are charges. The advantage of a Bitcoin is that you can transact in amounts of 8 decimal digits which is unimaginable in real currency. But take note of transaction and trading charges which differ for each currency.
#5 Rule of Thumb – do your research
Today there are more than 1000 crypto currencies in the world and it is probably the next emerging superpower. Some people who have had Bitcoins have become millionaires.
But be careful where you invest, how much you invest. Always do your research and the best thing about crypto currency is that all information is freely available online.
Do not jump and buy an altcoin. Watch its historical chart and see what others are saying about it. Join a forum or group interested in this topic. There are so many things to know about crypto currencies. It is a whole new world!
We all want one unified market and more freedom and hopefully in time we will all achieve it.
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