A cryptocurrency exchange is a platform that facilitates transactions of digital currencies
The huge development of cryptocurrency has piqued everyone. Over the past year or so, the value of Bitcoin has grown leaps and bounds. In actual fact, in April this year, the world’s oldest and biggest cryptocurrency breached the $60,000-mark. Amongst others, Ether has followed virtually the identical trajectory as Bitcoin, but Dogecoin, the meme-based cryptocurrency, broadly popularised by billionaire Elon Musk, has been the surprise package. What was once started and for the longest time dismissed as only a “meme” has a market cap of ₹ 2.8 trillion.
Now, if you’re thinking of buying a cryptocurrency, you should be having a number of questions in your mind. We answer the most essential 5 here:
1) The best way to begin investing in Crypto?
Effectively, after you have determined to put money into a digital token — Bitcoin, Ether, Dogecoin or any other of your liking — listed below are a number of very straightforward steps to follow:
a) Select an exchange: A cryptocurrency exchange is a platform that facilitates transactions of digital currencies.
b) The second step involves transferring the cash to your cryptocurrency account. In India, on crypto exchange platforms, when you create a trading account, you can be guided to switch the cash so that you start doing transactions.
c) As soon as you’re there, take a name on whether you need to preserve your cash with the exchange or transfer forex to a hot or cold wallet.
2) Why do we have so many of them?
This query has occurred many instances. If the prices are so volatile, how come now we have so many digital tokens? As and when Bitcoin grew, people decided to introduce newer digital currencies with maybe some further options to the market. Moreover, investors and traders have at all times had their eyes on minting some money. Therefore, now we have so many of these tokens or digital assets now.
3) Could they fail?
Absolutely. In actual fact, in response to an article in ColumbiaPacific is estimated that just about 2,000 cryptocurrencies have failed, a lot of them throughout the preliminary increase in 2017-18. This occurred for a number of causes. Lack of funding initially and after launch, failure to evolve, and some have been outright frauds have been a few of the causes that surfaced.
4) Are they extremely volatile?
Sample this. In mid-April, following an unprecedented rally, Bitcoin traded at its highest, $65,000 (roughly ₹ 48 lakhs) however crashed to below $30,000-mark a month later, in May. In July, it confirmed some indicators of restoration and as soon as again breached the $40,000-mark again. On Friday, September 3, the oldest digital token opened at ₹ 37,79,655 ($49,340).
5) Does any Indian company accept cryptocurrency?
Yes, not all however some do. The Rug Republic, a Delhi-based decor model, accepts Bitcoin. Purse, a web-based retailer that sells digital items, accepts Bitcoin. Sapna, an online platform where you get from books to private hygiene items, means that you can purchase items using Bitcoins.