Investing in cryptocurrency : Those who believe them take them to be the future of finance while those who don’t look down on it as fraud stay behind. However, there are many investors who are already benefitting from the returns made in the briskly growing realm of digital currencies. This said there are many digital currencies that are afloat in the market and if one does look forward to investing in them which one is the best bet? Here are some of the top digital currencies that are booming in the market and how you could invest on them.
Before we begin you should know that recently in the month of June this year there was a significant decline in the value of digital currencies. The fall was between 20 and 30%. The most digital currency which is Bitcoin was the most hit. Bitcoin almost runs the market of digital currency and when it fell so did the others. All the currencies went under correction. However, following the trend of the investment experts it is seen that whenever the value of Bitcoin has fallen it has bounced back to its natural self. Digital currencies are not affected by the economy of a single country and cannot be controlled by any government. For now here are the top digital currencies:
Bitcoin:
This digital currency was the first of its kind and was created by Satoshi Nakamoto (group/individual). The currency soon found its way to becoming famous and there are thousands of transactions that are happening today. Bitcoins are actually lines of codes lines of computer code which are digitally signed every time they change their owners. Gamers, technical enthusiasts, investors and even criminals use it quite a lot. There are 21 million Bitcoins and one needs to mine them. You can approach a broker if you wish to invest in Bitcoins also there are apps that let you trade in Bitcoins for a nominal fee. Bitcoins are so expensive that everyone cannot buy one Bitcoin, they can buy Satoshi which is the smallest part of Bitcoin.
Ethereum:
Ethereum was developed only in 2014 yet it is considered as the only digital currency that may have the power to overthrow Bitcoin. VitalikButerin has been credited with its invention of Ethereum. The currency of Ethereum is Ether and like Bitcoin it can be traded on the internet. The founders go by saying that Ether is not a currency instead a token or crypto-fuel which can be used to pay for Ethereum platform. You cannot make online purchases using Ether but can invest and trade in it. Bitcoin exchanges also deal in Ethereum or online digital currency wallet platforms.
Ripple:
Released in 2012 Ripple aims in having instant and free financial transactions across the world without any charges. It has been created on distributed open source Internet protocol, unanimity ledger and native currency known as XRP(Ripples). Some of the banking companies which use Ripple are UBS, Santander, UniCredit etc. The banking systems seem to work well with Ripple because of which its popularity seems to grow. Ripple has its own website where you can buy it from but there are other currency wallets where the purchase can be made.
Monero:
Launched just 3 years back on April 2014 under the name BitMonero which was changed just to Monero within 5 days, it is a cryptocurrency which is open source and works on Mac, Windows, FreeBSD, Android and Linux. It is powered by Proof of Work. Monero can be purchased directly on a Monero trading exchange such as Kraken, Bitfinex, LiveCoinetc or directly from an exchange if the purchase is too much. You can also buy Bitcoin and convert it to Monero.
DigiByte:
DigiByte is based on Bitcoin and is also an open source cryptocurrency which runs on DigiByte Blockchain. A couple of months back DigiByte has a total capitalization of $230 million. It is also the longest public blockchain. DigiByte can be purchased from its website. Like Monero even DigiByte can be exchanged for Bitcoins or by registering on Poloniex.
The Champ Coin (TCC):
Champ Coin is also based on Blockchain. The miners of TCC create market. When the coin is mined the transactions are added and recorded to the ledger of TCC which already contains the previous transactions. The ledger bears a resemblance to chain of blocks which confirm that a specific number of transactions have been done. TCC uses the POS and POW technology to work around.
Dash:
Dash happens to be one of the most anonymous cryptocurrencies. There are about $6,500,000 coins that are rotating in the market. Dash is based on the software of Bitcoin and lets you make transactions anonymously just like cash. Tracing transactions are almost impossible through Dash. The funding of the developers is done through a Blockchain system. Since its introduction its value has been rapidly increased and people have been seen investing thoroughly on this cryptocurrency.
Litecoin:
Released under MIT/X11 license Litecoin is an open source software project and it is a peer-to-peer cryptocurrency. Once again regarded as technically identical to Bitcoin with added technical modifications Litecoin permits more number of transactions to be processed in a single transaction. Litecoin was developed by Charlie Lee who released it through open source client on Github in 2011. The costs of payments are almost zero and the transactions of lighting speed. Litecoin uses a software algorithm to mine units. It is cheaper to buy Litecoin and is usually counted as third most important cryptocurrency after Bitcoin and Ethereum.
Investing in these digital currencies or cryptocurrencies is not something like buying a stock or bond. It is basically swapping the regular currency with these and then when the value of the digital or crypto currencies increases one can change them back. For now these digital currencies are highly in demand with Bitcoin being the most sought currencies. The current price of the digital currencies can be easily obtained online. Bitcoins especially are highly in demand and quite a profitable option.