What is Cryptocurrency
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies. Wikipedia
Cryptocurrency: a decentralized digital medium of exchange which is created, regulated, and exchanged using cryptography and (usually) open source software. The Free Dictionary
Cryptocurrency is a secure medium of exchange for internet users. It is designed with some high level computer algorithms to ensure very safe and secure online transactions. It is fast and acceptable in very few online locations presently. Cryptocurrencies can be digitally transferred using a devise like a smartphone. The ease and safety of the usage of Cryptocurrencies online is one of the prime driver of digital currencies. .
According to Wikipedia there are 710 Cryptocurrencies available to trade online as at January 2017 with only 26 of them having market capitalization of over 10 million USD.
How Does It Work?
The investments in Cryptocurrencies works like the simple law of demand, the growth in the value of the currency rides on its popularity and increased demands. As more people get to know of the currency and want to invest in it and use it as a store of value and medium of exchange online, the demand is increases and subsequently the price goes up.
How To Invest In Cryptocurrency?
The very first step is to open a Cryptocurrency wallet. All the different Cryptocurrencies have their wallet that can be downloaded from their website or you open a cryptocurrency wallet with a cryptocurrency exchange where you can buy all the different coins and hold them in one wallet.
No matter the type of wallet you choose to start with, the wallet will provide you with a unique address, where you can trade in your coins and other people can send coins to you, ensuring you will always receive them and they don’t go to someone else.
How To Buy Coins?
Transfer money from your bank account or with your card online to your Cryptocurrency wallet to begin buying coins for online trading, online shopping or long wait for growth in value. The success of your purchase depends on what you are willing to pay and the quantity of coins you choose to buy. The system marches you with a seller that matches your demands and credit your wallet with the quantity of coins you have bought and deduct the value from your account and vise versa if you are selling.
You can then buy your choice coins through the following means.
1. Cryptocurrency exchange site: The safest and most commonly used. The most simple way of investing is buying the digital currency of your choice with real money on any exchange then selling it for any other currency from the list of coins in the exchange.
2. Online communities and forums: Ensure you are dealing with a seller or buyer who has been referred or has had successful transactions with other members of the forum to avoid being swindled.
3. Friends: Ensure your friend have the type of coin you are interested in and enough of it before your transfer the value to him or her. The value can be in cash or via your wallet account.
You can buy Bitcoin and use its value to buy Onecoin on the same exchange. Do not keep any significant amount of assets on an exchange. After buying the currency of your choice, send it to a wallet without an internet connection. Remember to do some research to ensure your storage is solid and secure.
Remember any amount invested in Cryptocurrency cannot be exchanged back to cash, it can only be used for online purchases at locations accepting it for payment, used to purchase another digital currency or watched to grow as effective demand drives its value up.