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Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.
People’s behaviour, communication, shopping trends and even how they pay for items have all altered as a result of technological advancements. Consumers and service providers no longer prefer cash. Contactless payments such as Google Pay are gaining traction. Consumers may now pay for things with a quick wave of their smartphones. Now, a new mode of payment and currency is rising in popularity: cryptocurrencies.
By now, almost everyone has come across the term Bitcoin. It was the first cryptocurrency to gain mainstream acceptance; others are steadily gaining traction and becoming more popular for various reasons. There are almost 2500 different types of cryptocurrencies, and new tokens are being added every day.
What are cryptocurrencies?
Cryptocurrencies are payment mechanisms that do not rely on banks for transaction verification. It’s a peer-to-peer system that enables anyone to make and receive payments from anywhere. Cryptocurrency transactions are digital additions to an online database that specify transactions rather than actual money that is carried around and traded in the real world. The transactions that you make with cryptocurrency assets are recorded in a public ledger. The name cryptocurrency comes from the fact that these systems use cryptography to validate transactions. This means that storing and exchanging crypto data between wallets and public ledgers requires complex coding in order to keep those information packets secure.
Are cryptocurrencies secure?
Blockchain technology is commonly used to create cryptocurrencies. The process by which transactions are recorded in “blocks” and time-stamped is described by a blockchain. It’s a long, complex process that results in a secure digital record of cryptocurrency transactions that hackers can’t meddle with.
Transactions also necessitate a two-factor authentication process. To initiate a transaction, a user must login using a username and password. Then they may be required to input an auth code sent via email or SMS.
Should you consider crypto investing?
Investments have always been dangerous. But, according to Consumer Reports, some experts believe cryptocurrency is one of the riskier investment options available. Digital currencies, however, are among the hottest commodities. CNBC predicted a few years ago that the cryptocurrency market would hit $1 trillion in value by the end of 2018. If you’re considering investing in cryptocurrencies, these pointers can help you avoid some common mistakes and make informed decisions.
Storage of Crypto – You must store cryptocurrency if you purchase it. Crypto can be stored in a digital wallet or on an exchange. While there are several different types of wallets, each has its own set of advantages, drawbacks, technological needs, and security features. WazirX currently offers the best crypto wallet in India with loads of support and features. Security has always been a top priority at WazirX with secure wallets.
Diversify – Similar to stock trading, diversification is an important part of any effective investment strategy, and it’s no different when it comes to cryptocurrency. Don’t put all of your money in one coin/token just because you’ve heard about it a lot and are familiar with it. With tens of thousands of tempting options, it’s ideal to diversify your portfolio by investing in other currencies. Some things to avoid while investing in crypto are detailed here.
Best cryptocurrencies for students to invest in India
Keeping the fundamental crypto investing strategies in mind, any individual can partake in crypto trading. Everyone wants to invest in cryptocurrency, particularly college students who want to guarantee their future by making wise investments. Here is a list of five cryptocurrencies that students might consider investing in India throughout their college years:
- Cardano
Cardano showed up later in the crypto market, but it has earned a name for itself thanks to its proof-of-stake validation. Cardano speeds up transactions and saves energy. The wonderful thing about ADA is that it functions similarly to ETH in terms of enabling smart contracts and DeFi apps, which makes Cardano one of the finest cryptocurrencies for students to invest in. ADA can be traded with ease on WazirX.
- Matic
Matic is the very first well-structured and user-friendly Ethereum platform used for scaling and infrastructure development. Polygon SDK, which is the framework’s fundamental component, can be used to create a variety of apps. This is another great digital asset for students to invest in.
- XRP
Ripple’s founders came up with the idea for XRP. When it comes to Ripple, it is both – digital technology and a payment processing corporation. XRP may be utilized on that network to convert all major cryptocurrencies and fiat currencies. As a result, XRP is one of the greatest cryptocurrencies for students to invest in and one of the best overall cryptos currently available. Here’s a guide on how to buy XRP with WRX.
- Algorand
Algorand is a self-sustaining, decentralized, blockchain-based ecosystem that can be used for various purposes and is efficient, highly scalable, and safe. To develop new forms of trust, Algorand will support computations that require dependable performance assurances. Students can just head over to WazirX and start buying ALGO!
- Fantom
Fantom is also a decentralized finance (DeFi) smart contract platform that uses its own bespoke consensus algorithm to provide developers with decentralized finance (DeFi) services. Fantom attempts to alleviate challenges connected with smart-contract platforms – notably transaction speed, which the developers claim they have lowered, using their in-house coin FTM. FTM is currently live on WazirX’s INR market and can easily be acquired.
Frequently Asked Questions
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Is Pi Cryptocurrency Safe?
Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
Is Cryptocurrency Safe To Invest In?
Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
How To Invest In Cryptocurrency?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
