You can’t build a great building without a strong foundation.”
If you are one who’s a digital currency fan & looking for the best cryptocurrency to invest in 2022 then as a beginner, it is a foremost necessity to build a strong foundation about cryptocurrency before jumping to the question of how to invest in cryptocurrency because beginners have so many queries to be solved and chaos to be rectified.
Let’s begin with all the questions which might make your journey exciting before investing in cryptocurrency.
What is cryptocurrency?
Cryptocurrency is the digital currency that can be used as a long or short-term investment for buying and purchasing any asset online.
What makes Cryptocurrency more appealing is its blockchain technology and its decentralization which makes it secure and authentic from hackers and getting manipulated in the market.
Only the cryptocurrency miners can mine the digital currency which is totally authentic and originally generated on the unique name of the individual who owns it.
Unlike other physical currencies, it’s not centralized and has no regulatory body to control the cash inflammation rate.
What types of cryptocurrency exist?
There are multiple types of cryptocurrency that exist in the market but the most popular and common cryptocurrency known among people is Bitcoin.
Cryptocurrencies like Ethereum, Litecoin, Cardano, Polkadot, Bitcoin Cash, Stellar, and 6000+ types of cryptocurrencies are available in the market.
Bitcoin is the most stable coin & best cryptocurrency to invest in being the first type of cryptocurrency. Meanwhile, investors can select the type of cryptocurrency according to their interest, what best serves their needs.
Who invented cryptocurrency?
People do refer to the inventor of cryptocurrency as Satoshi Nakamoto who created the cryptocurrency and get vanished suddenly. And you will be surprised to know the fact about cryptocurrency is that there is a rumor too that the name has been picked from the acronym from the leading Tech companies: Samsung-Toshiba-Nakamichi-Motorola.
How to buy cryptocurrency?
Just like any other stock market, the cryptocurrency market has available exchange platforms and brokers who become bridges between you and this industry, helping you buy the best cryptocurrency to invest in by taking commission or fee on each transaction. The policy may differ as per the platform you buy cryptocurrency.
Some of the top cryptocurrencies in India are CoinDCX, Kuber, Coinswitch, etc. Users have to sign up with their KYC details and buy cryptocurrency. These exchanges also help you monitor the fluctuating value of cryptocurrency and guide you to buy or sell it.
What can you buy from cryptocurrency?
Many countries are slowly welcoming the idea of cryptocurrency as a legitimate type of payment method but it is still not fully regulated in the market today.
As this is not acceptable in daily transactions till now so you can either use it as a long-term investment like a Fixed Deposit. And can sell or utilize when the price is pleasant.
Many trading platforms like Unocoin allow their users to do transaction activity in exchange for cryptocurrency.
How stable are cryptocurrencies?
With the demand for cryptocurrency in the market it keeps on fluctuating but whatever the rate is it will always leave you in profit.
In January 2021 Bitcoin skyrocketed its price to $40000(roughly around Rs. 29.70 lakh) whereas in November 2021 the price of bitcoin was approx 51 lakhs.
It’s exactly like a stock market that needs all your patience, time, and research to invest the calculated amount also when to withdraw the money to get profit.
Is it safe to invest in cryptocurrency?
The reason why you reading about cryptocurrency is that cryptocurrency has somewhere created a great boom in a limited time. Of course, it’s not fully legalized in some countries but it’s doesn’t mean that it is not acceptable.
Of course, there are limited resources and options available to make usages of cryptocurrency but soon with the acceptability of individuals.
Right now Investing in cryptocurrency is risky but also potentially extremely profitable.
The safer option is to buy the stocks of a company with exposure to cryptocurrency.
Is it legal to buy cryptocurrency?
At a moment there is no legalization of cryptocurrency in India or any of the other countries but it does not at all mean that it’s illegal.
According to the current bill passed in India, the transaction and processing of cryptocurrency are acceptable as per country norms and taxes but it’s not authorized or held by any government body.
So far very few countries have welcomed cryptocurrency as a legal tender hope it gets bigger in the future.
Why should you invest in cryptocurrency?
Cryptocurrency is a new era digital saving promise to invest in something good and valuable with good returns on investment in less amount.
Another good thing is that anyone can invest in this even with a small amount.
But the best part is that whether it’s any type of cryptocurrency the whole process is decentralized and highly secured which can not be manipulated by any government body thus no sudden inflammation in value and tax.
An owner has full control over his asset once he owns any type of cryptocurrency.
Which cryptocurrency to buy?
Bitcoin is the most talked about and known type of cryptocurrency you can buy or invest in without giving a second thought.
But whatever type of cryptocurrency you buy make sure to pick the best cryptocurrency exchange with a strong level of liquidity & reliability.
According to current statistics, Luckyblock is assumed to be the best cryptocurrency to invest in 2022.
How can you store your cryptocurrency?
Cryptocurrency can be stored in a digital wallet which can be assessed by using the private key. Without this private password, cryptocurrency owners can’t use the cryptocurrency.
Your cryptocurrency is stored in blockchain thus it requires access to transfer any type of cryptocurrency before transferring it to another person’s wallet.
There are different type of cryptocurrency wallet available that provides different types of security, reliability, and accessibility.