Things you should know before using Cryptocurrencies in 2021.

What is cryptocurrency ?

Cryptocurrencies is new, digital, and secure form of currency.They have special encryption techniques that make them virtually impossible to track or to steal. Cryptocurrencies use a revolutionary method of encrypted digital distribution known as 'blockchain'. Ex: Bitcoin, Ethereum, Dogecoin and more.

Why Cryptocurrencies are so popular?

Cryptocurrencies are  becoming popular from the year 2016 but from year 2020 to 2021 many cryptocurrencies such as bitcoin, ethereum, dogecoin,etc showed a very rapid increase in the prices.

There are multiple reason behind cryptocurrencies popularity but here are some of them :-   

 ►Some of the Cryptocurrencies value is now 2x or 3x or even more as compare to year 2020 which attracted people because of high returns.
 ►People see it as an investment for long term so that they can get high returns or some people use it as an asset building which can make them rich.
 ►People or investor see cryptocurrencies like Bitcoin as the currency of future and are racing to buy them now, before they become more valuable.
 ►Some people like the technology behind cryptocurrencies that is blockchain technology, because it has decentralized processing and recording system.
 ►A strong reason for supporting cryptocurrencies is it's secure payment system which is almost impossible to hack or steal.

Are cryptocurrencies Good for the purpose of investment?

Cryptocurrencies may go very up in value but investors not see it as a real investment but as a risk of huge loss. Just like real currencies, Cryptocurrencies generate no cashflow which means someone has to pay higher than you so that you can book your profit and this concept is known as "the greater fool" in terms of investment.

This value of cryptocurencies is very unpredictability which makes a big problem. So, here one question arises?

In the event that coins like bitcoin may be more worthy later on, individuals are less likely to spend and circulate them today, making them less suitable as a cash. Why spend a bitcoin when it can be worth multiple times the worth one year from now?

Well, like most investments, crypto assets come with a host of risks but also vast potential rewards.

⚡Also read : Indian Startups that have turned Unicorn in 2021 so far.

Is Cryptocurrency safe?

Frauds and scams are also uncontrollable in the crypto industry. Hypesters who promise investors high returns are typically unable to fulfill their lofty or impossible promises since they very frequently peddle fool's gold rather than legitimate blockchain projects. Investors who buy into the hype can suffer brutal losses when these projects eventually fail.

But, thanks to blockchain technology. Bitcoin and all other cryptocurrencies are more secure than any other transactions like net banking, online order, digital wallets and more.

Infact, it is so secure that people who invested in Bitcoin years ago have lost their password but their is no way to reset which is not likely to be seen in any other payment or banking system.

Major risks while investing in Cryptocurrencies.

 "Cryptocurrencies seems to be highly volatile." In one day, a coin can move 20% or more. Also some newly invented coins can jump 40x or over in their first few months.

Your investment and transactions are secure but not safe for the following ways :

If the value of your cryptocurrency in which you invested suddenly falls to very low even it was moving at high with the trend can make you deal with huge losses.

You have to invest in cryptocurrencies with the help of other companies or wallet and if something happened with that company then all the money that you invested will be lost.

One of the biggest problem is that those who are seeking for large amount of money invent coins which are completely fraud and scam and take all the money of investors and left them with worthless tokens.

Some ways to identify real and genuine cryptocurrencies in the crypto market.

There are some basic but most important points which should be followed by every newbie or an experienced investor:

Who is the owner of company? The owner should be identifiable and a well known personality with a positive mindset.

Are there any other major investors who are investing in that cryptocurrency? It’s a good sign if any other well-known successful investor is investing in that cryptocurrency.

This is also a very important question that will you own the stake in the company or just using their currency as a token? If you will get stake in the company then you will get some percent profit made by the company whereas when you are getting tokens which means you are just entitled to use them for trading.

Is currency already developed or company is looking for raising funds? If the currency is developed the more safer it is to invest in such currencies.

Although after considering all this points doesn't mean that the currency will succeed but to find out this you need a lot of research and go through history of that cryptocurrency. Also, what are the future goals and targets of company.

⚡Also read : Indian Startups that have turned Unicorn in 2021 so far.

So, here are top 10 Cryptocurrencies by their Market Capitalization.

Top 10 Cryptocurrencies by their market capitalization.

       Cryptocurrency                     Market Cap

    Bitcoin (BTC)                                 $947 B
    Ethereum (ETH)                            $475 B
    Binance Coin (BNB)                     $92 B
    Dogecoin (DOGE)                         $74 B
    Cardano (ADA)                             $60 B
    Tether (USDT)                               $57 B
    XRP (XRP)                                     $49 B
    Polkadot (DOT)                              $42 B
    Internet Computer (ICP)                $38 B
    Bitcoin Cash (BCH)                        $24 B

Should you buy Cryptocurrency?

You should invest in cryptocurrencies which are highly are trusted and also have a large amount of market capitalization. Investing in cryptocurrencies is more risky then investing in Stocks but at the same time cryptocurrencies can highly boost you investment or income.

Some of the platforms for investing in cryptocurrencies.

NOTE : You even buy or sell cryptocurrencies in points for ex :- 0.0034 Bitcoin.

Apps shown below are two of the most  trusted, genuine and woking actively all over the world.

1.) WazirX

WAZIRX is currently working all over the world. It has currently 1 Billion + active users. Currently it is acquired by Binance Group which is leading cryptocurrencies exchage. It was launched on March, 2018 and also has its own token named WRX.
It was launced specially for Indian investors. Wazirx provides:-
 
Lightning fast Deposits & Withdrawls,
 
Buy/Sell your favourite coins in any volume,
 
50% Referral Commission,
 
Best in class Security,
 
Intelligent order forms,
 
Track market movements,
 
Track your order position,
 
Smart Widgets and more.

Join now/Know More

2.) Zebpay

Zebpay is working all around the globe with over 3 million users and $2 Billion in fiat transactions. Zebpay is one of the fastest-growing and most popular cryptocurrency exchanges, headquartered in Singapore. It provides:-

Simple,

Secure,

Lightining speed transactions,

Clutter free easy to use,

Earn 50% of trading fees when referred and more.

Join now/Know More

⚡Also read : Indian Startups that have turned Unicorn in 2021 so far. 

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