Bitcoin has been making headlines since its birth in 2009. It has been successful in drawing the attention of everyone due to the steep rise it has seen in market valuation through the last decade. From establishing transparent white paper organizations to making early investors billionaires, Bitcoin has intrigued a lot of queries among enthusiasts, the majority of it centering on the methods in which the masses can purchase it. This blog aims at enlightening the readers regarding the same.
What is bitcoin?
For the minority of the people who are still unaware, Bitcoin is a consensus decentralized peer-to-peer payment network. It is known as digital gold due to its extremely high valuation of 68000+ US Dollars per Bitcoin, increasing every day. Cryptocurrencies are digital assets that one can use as an exchange medium. Bitcoin is the most valuable and famous token amongst all cryptocurrencies. Blockchain is the foundation technology of Bitcoin. Therefore, the user data gets stored in distributed ledgers known as blockchains. For more information, check out the bitcoin FAQs detailed bitcoin investment guide .
What are the other cryptocurrencies except for bitcoin?
As the popularity of blockchain technology increases, hundreds of cryptocurrencies find their way into the market now and then. We can prepare a list of the top cryptocurrencies which seem stable and investable in November 2021.
- Binance coin
How to purchase these cryptocurrencies?
Broadly, there are three forms of crypto investments. One can:
- Buy from cryptocurrency exchanges
- Invest in organizations and companies which directly correlate to cryptocurrencies:
Graphics card companies are online payment portals directly affected by the growth of cryptocurrencies that are best for investment. The positive side of this is that the risk is low, and the profit occurs through the stock exchange, which is not as volatile as crypto.
- Invest in Crypto exchange-traded funds (if available soon)
Crypto ETFs offer lower risks than individual investments. Even though it is not a big thing, crypto ETFs have a high chance of booming shortly.
What are cryptocurrency exchanges?
Platforms where traders meet to exchange cryptocurrencies, are known as cryptocurrency exchanges. Buyers and sellers have this common ground for depositing and withdrawing their funds invested in cryptocurrencies through this platform. Traders square out profits by applying keen strategies to decide the perfect timing for buying or selling. The platform charges a certain minor fee for each transaction or other methods applicable differently for different exchanges.
What are some trustworthy exchanges?
Although there are many registered exchanges on the internet, they may not be transparent with their actions or trustworthy. The top 5 most frequently used cryptocurrency exchanges across the world are:
Coinbase is the leading cryptocurrency exchange, as it allows direct transactions with US dollars. Many branching applications invest a pool of money from their clients into crypto through coinbase and provide successive returns.
How is purchasing tokens different from mining?
To break it down into simple terms, miners solve the puzzles themselves to unlock bitcoins, which land in their e-wallets. This requires a massive setup of hi-tech computer equipment demanding electricity 24×7.
On the other hand, when traders want to purchase cryptocurrencies, they simply log in to their exchange accounts and buy coins. The exchanges purchase these tokens from these mining farms.
The reward for mining is financially way more than that a trader makes through a transaction. However, one must keep in mind that this setup and handling of mining equipment is particularly difficult and costly and therefore not an option for most investors.
Purchasing cryptocurrencies is a piece of cake in 2021, credit to the numerous apps and sites dedicated solely to that purpose. Despite the fluctuations, statistics say that Bitcoin alone has a greater valuation than MasterCard and Disney combined. Hence, all discussions regarding its profitability are futile. Although the numbers are promising and manifest high chances of wealth multiplication, we still warn the readers to perform a minute and detailed market research before purchasing cryptocurrencies and investing their hard-earned money into them.