You are may be wondering if investing in digital currency is a good idea or not. How much money you can make and how to win this game in the market.
Here are some things you need to know about crypto-currencies before you invest in it.
Different Crypto Coins
The crypto currency expression is often associated with bitcoin by the general public, but if it is the first cryptocurrency, it is not the only one that exists to date. Since the creation of the bitcoin in 2009 by the Japanese Satoshi Nakamoto, the virtual currency has been so successful that it has pushed other people to create more and more so that there are currently hundreds of crypto currencies.
But as for traditional currencies, only a few are well known. If in the world of cryptocurrency, Bitcoin can take the status of the dollar, the Ether of the euro, while the Yuan Ripple while Bitcoin Cash is similar to the Yen.
To better understand what these crypto currencies represent in terms of financial, we will take a look at the site coinmarketcap.com dated October 22, 2017. According to data provided by the site, that day, Bitcoin dominates still largely with 58% nearly $ 100 billion of market capitalization, while just over 28 billion for Ethereum, just under 8 billion for Ripple and only 3 billion for Litecoin.
Other cryptocurrencies that are currently experiencing a rise are composed of Bitcoin Cash, Dash, NEM, BitConnect, NEO, and Monero.
Let’s take a closer look at these 10 crypto currencies:
Crypto currency launched in 2009 essentially characterized by a transfer between persons whose market capitalization is 99.5 billion as of October 22, 2017.
Launched in 2015, Ethereum is an exchange protocol using Ether as a unit of account and payment.
Launched in 2012, Ripple is not only a real gross payment system but also a foreign exchange market in addition to being a network of remittances. As of October 22, 2017, its market capitalization is $ 7.8 billion.
4- Bitcoin Cash
Launched in 2017 following a need to increase the block size from 1 MB to 8 MB, Bitcoin Cash had a market capitalization of $ 5.7 billion as of October 22, 2017.
Launched 3 years after Bitcoin, LiteCoin offers a similar operation to that of Bitcoin, but under another code. Its market capitalization on October 22, 2017, is 3 billion dollars.
Launched in 2014, Dash is a cryptographic alternative to cash promises total anonymity, $ 2.1 billion in market capitalization as of October 22, 2017.
The launch made in 2015, NEM (New Economic Movement) with currency Xem. As of October 22, 2017, its market capitalization is $ 1.9 billion.
Launched in late 2016, BitConnect peaks at $ 1.4 billion in market cap as of October 22, 2017. BitConnect operates as an open source platform selling, buying and trading bitcoins and bitconnect Coins.
Launched in 2017, Asian cryptocurrency NEO has already achieved a market capitalization of $ 1.3 billion as of October 22, 2017.
Launched in 2014, Monero wants to be different from other crypto currencies inherited from Bitcoin by its cryptography using signatures in circles. This gives it total anonymity because a user has no knowledge of the content and even less of the transaction history. $ 1.3 billion market capitalization as at October 22, 2017.
Where to invest?
Trading platforms that offer to invest in crypto currency have more or less the same functionality. Nevertheless, each of them has the specificities that you should consider before investing in bitcoin or other crypto currencies.
Here are some points that should dictate your choice of platform:
Security and legislation
A reliable cryptocurrency trading platform must always comply with regulations to combat the financing of illegal activities. Your marketplace must then require you to enter your personal information before you can trade to invest. She will ask you to provide the photograph of your ID. Added to this are other possible verifications. As for the verification period, it can be long, but also very fast depending on the market place chosen.
Quite naturally, the volume of exchange makes it possible to measure the degree of confidence traders have in this or that marketplace. This volume of exchange can also be closely linked to the number of crypto currencies offered. A platform with a high volume of exchanges is thus more likely to offer you a wide choice of assets but also places you in a more serene and fair exchange environment.
When it comes to money, it’s always better to spend less. Remember to inquire about the exchange fees. These fees are generally decreasing depending on the volume invested, ranging from 0.30% to 0.10%. Also remember to inform yourself about the deposit or withdrawal fees in foreign currency: euro, dollar, Swiss franc or other. Do not forget to check the cost of the credit card purchase. It varies enormously from one platform to another and can reach 10%.
Some platforms at your disposal?
For Europeans, American and European platforms remain the most popular.
In the rank of American platforms, you have:
Created in 2011, Kraken allows you to directly deposit and exchange the euro and the dollar against the most popular crypto currencies.
Launched in 2014, Poloniex presents itself as a very popular cryptocurrency platform but unfortunately does not allow exchange in euros.
If you want to limit your investment costs, you can turn to Asian platforms:
This Chinese platform based in Hong Kong is no less popular than those in the US.
Based in Japan, Vietnam, and Singapore, this platform is distinguished by the fact that it mainly addresses the Asian public and the wide choice of crypto currencies available.