What does cryptocurrency mean?
Crypto means concealed and currency is the digital currency equivalence saved in a ledger which is a computer database locked by cryptography. Cryptocurrency is a digital currency that cannot be stored in physical banks or similar financial institutes. It’s more like a property that you buy with your money but it has a great value that you can utilise sooner or later.
Cryptocurrency is safely locked in a digital locker to secure transaction records, limit the creation of new coins, and verify the transfer of owners of the said cryptocurrency.
How to Make profit in cryptocurrency?
Cryptocurrency, like any stock market investment, has the potential to make a profit as well as a loss. You can make money out of your cryptocurrency trading business. You can make high returns because of its inherent volatility. However, crypto is considered to be still at risk. It’s better to invest only after gaining some knowledge and experience in making profits in crypto
Secrets to making profits in crypto are trading in crypto. There is great potential in short-term crypto trading because of its volatile nature and fewer numbers of crypto traders. Despite the current scale of the crypto industry, it has enormous growth potential in the future.
Is it safe to invest in cryptocurrency?
Cryptocurrency has been around for almost a decade and has survived two global financial crises. Traditional assets of investigation included gold and the stock market, but with the arrival of cryptocurrency, a new realm has opened up. However, crypto is gradually becoming a mainstream investment class, particularly among young investors.
In many countries including India, legal status has not been given to cryptocurrency but trading between crypto is not banned.
Indeed, purchasing cryptocurrencies in India is not prohibited. However, unlike traditional investment options, there is no legal guarantee that the monies deposited will be safe. So the answer to is it safe to invest in a crypto is that it is highly unlikely to be safe and is termed as a high-risk, high-reward investment option.
Cryptocurrency exchanges are optimistic that the burgeoning asset class would continue to draw more investors in India, owing to its rapidly growing user base. Older investors seem to think cryptocurrency is still unsafe while young investors are bolder in their approach.
The future of cryptocurrency
After research, for several years and from people’s experiences it is evident that cryptocurrency is an asset. It is difficult to predict the future of cryptocurrency but a few old cryptos can be compared to get some insights into the future of cryptocurrency.
For example Bitcoin, it is by far the largest cryptocurrency in market value. The trends in its course could help us in determining future business goals.
However, experts suggest that doing the comparison is not fruitful because Bitcoin is also a new entity and believing the stats can result in great losses. They suggest that people should invest in crypto after understanding all slides of the story and with the thought that the investment could result in anything. Cryptocurrency investment comes with risk and if you are ready to take the risk you should invest in it despite the odds.
Best trading platform for cryptocurrency
There are several trading platforms for cryptocurrency online but there are only a few that are popular among investors-;
“ Coinbase” is one of the most popular trading platforms in the world. You can buy Bitcoin, Ethereum, and Litecoin along with 30 other coins and tokens. It is very popular because you can earn coins by participating in various activities.
“Voyager” was the first publicly traded exchanger and it also gives $25 Bitcoins on your first $100 trade. Voyager accepts the majority of major cryptocurrencies, offers excellent customer service and interaction, and offers reasonable interest rates on assets.
“Unocoin” is India’s first cryptocurrency trading platform and it was established in 2013. Unocoin allows you to set a certain day and time for selling a specific amount of cryptocurrency. Unocoin offers over-the-counter (OTC) trading, which allows users to trade in large quantities. To make the exchange more user-friendly, it has also introduced a smartphone app.
“CoinDCX” is the top cryptocurrency trading platform in India. With more than 400 million registered users it is capable of exchanging crypto in Bitcoin, Ethereum, Ripple, Litecoin, and many more altcoins.
When to invest in cryptocurrency to book profit?
When you are planning on withdrawing your profile from the market and planning to redeem profits you need to keep in mind a few things. Experts suggest keeping your funds in divided investments to achieve the target value required to meet the fund’s financial aim.
Determine your asset allocation, in which investments are made in both equity and debt segments in a fixed ratio so that the goal to achieve your financial investment is close to its goal. When the ratio is disrupted, primarily owing to equity market changes, money is transferred from one section to the other to restore the ratio.
As a result, when there is a rise in the market the equity proportion will increase, and to restore the ratio, some funds will have to be switched from equities to debt, resulting in a profit in the upmarket. Similar is the case when the market is down, funds will shift from debt to equities, making investments in down markets.
Therefore the best time to redeem your investment will be when the market is up. That is until the market is up you can invest in your cryptocurrency to book a profit.
Risks of investing in cryptocurrency?
There are a few risks of investing in cryptocurrency as they are still termed as high potential risky investments and being aware of it before investing would be a smart decision-.
- Inherent volatility- Cryptocurrencies are highly volatile and might result in a rapid rise and fall in the market.
- Unregulated system- Cryptocurrencies are not yet regulated both by governments and central banks in India.
- Easily hacked- Cryptocurrencies are highly likely to be hacked as they have stored in computer databases
- Disruption due to fluctuation or forks- Cryptocurrencies are prone to sudden price fluctuations in the market
Conclusion
The answer to the question as to what is cryptocurrency is that it is a digital investment that is stored in computer databases and protected by strong cryptography. Cryptocurrency is gaining attraction among young investors due to factors such as intrinsic security, lower transaction fees, lack of banking system involvement, ease of access and use, and universal recognition.
