You are probably wondering what cryptocurrencies are, if they are worth investing in, and how to invest in the cryptocurrency market? Cryptocurrencies? How to start?
What is a cryptocurrency?
Cryptocurrency is digital money, a virtual investment asset and a modern means of payment, the operation of which is usually based on a distributed ledger system.
Usually, because in the cryptocurrency market we have over 10,000 different projects representing different visions of the future, different philosophies and wildly different functionalities. Not every cryptocurrency is based on a traditional distributed or decentralized ledger system - like Bitcoin or Ethereum.
In the cryptocurrency market, we also have projects like IOTA, which, instead of being based on the block chain, base their functionality on the DAG or Directed Acyclic Graph. While the blockchain of cryptocurrencies, such as Bitcoin, has nodes that verify user transactions, IOTA and its DAG presented a completely different function - each new transaction must confirm two previous transactions The aforementioned solution has the potential for huge scalability - once DAG technology is mastered by developers, it is very likely that cryptocurrencies based on this solution will be able to surpass the functionality of VISA cards, which have the ability to handle 65,000 transactions per second
What are cryptocurrencies used for?
You've probably heard somewhere that cryptocurrencies offer instant, anonymous and secure transactions that take the same amount of time to complete, no matter how far apart your wallets are.
Where the aforementioned VISA handles up to 65,000 transactions per second (TPS), Bitcoin will handle a maximum of 7 TPS.
Ethereum? Not much better - 45 TPS.
The best performer at the moment is Ripple, which has the ability to manage up to 1,500 TPS, depending on the data. Although cryptocurrencies will definitely dominate the payments space, we will still have to wait for that to happen. The most likely solution will be DAG and scalability with the number of transactions on the network, which IOTA offers for example.
Why is scalability a problem for older cryptocurrencies?
At a time when the main marketing slogan for cryptocurrencies is instant payments, at higher volumes this asset is completely marginalized. Boom times often mean very slow and expensive transfers to Bitcoin - with high demand, the fee for miners can be as high as $20 per transaction.
its smaller footprint is less crowded than Bitcoin's network, making them transactions much cheaper and much faster.
Applications of cryptocurrencies:
Cryptocurrencies are a large store of value - at this point you can't generalize of course, not every cryptocurrency holds its value as well as gold. At the moment, the most popular cryptocurrency used to store value is Bitcoin, which, despite gigantic increases and drastic decreases, has been gaining value for a long time.
Long and short term investments - rapid price changes are a plus for many investors. However, many of them treat the cryptocurrency market like roulette - buying crypto currencies, without prior analysis and research, based only on the hope of increases is not always a good solution. Nevertheless, many investors decide to make such moves, executing many short-term buying and selling actions.
Make anonymous transactions - anonymity is a huge and powerful magnet. So far, this factor alone has attracted millions of investors and users to cryptocurrencies, but are cryptocurrencies really fully anonymous? Well - not exactly. despite knowing the address or public key, we do not know the identity of the user behind the 160-bit alphanumeric string.
Access to funds from around the world - depending on the type of cryptocurrency wallet the user uses, they can gain equal access to their assets anywhere in the world. If the user has a hot wallet - dedicated to the browser or a cryptocurrency exchange, he can access his funds literally anywhere in the world - the only
Cryptocurrencies will buy you a Lambo! (Soon maybe a Tesla too...) - in 2017, when there were many crypto-gods in the world, there was an offer on DeLouvois that allowed you to buy a Lamborghini Aventador SV with Bitcoins! This opportunity has become a real meme-legend among cryptocurrency investors, so don't be surprised if you hear one day in this environment - it's not much Lambo anymore! In 2021, the ability to buy a Tesla with Bitcoins appeared temporarily. The payment was unfortunately quickly withdrawn, but despite the temporary difficulties, rumors of a possible return of Tesla to Bitcoin have resurfaced!
How to buy cryptocurrency in Poland?
To buy cryptocurrencies in Poland, you need to choose the right platform that will allow you to register immediately and buy cryptocurrencies even faster.
In Poland, the easiest way to buy cryptocurrencies is at Egera - a cryptocurrency exchange and bureau - which allows you to register in 3 minutes and buy cryptocurrencies in less than 30 seconds.
How to buy cryptocurrency for PLN?
The easiest way to buy cryptocurrency for zlotys is to join Egera. All cryptocurrencies available on our platform are available in pairs with gold, which means you can withdraw money from our platform to your bank account at any time!
The first step is to find the right platform - you already have, because you are at Egera.
The next step is direct registration, during which the platform will ask you for basic information and identity verification, which is required by Polish and European legislation.
Now all you have to do is deposit the money - you can do this by bank card, traditional transfer and direct transfer.
At this point you are ready to buy cryptocurrency - choose which cryptocurrency you want to buy and exchange your money.
In the ranking of cryptocurrencies, the turnover is huge - projects that were in the top ten a year or two earlier, can fall down the rankings in an instant. For this reason, before investing in cryptocurrencies, you should do a thorough research on which cryptocurrencies have the greatest technological potential and price potential. By investing with composure and backing your buying decisions with analysis, you are sure to greatly increase your chances.
The average investor has a 50% chance of investment success, and as practice shows - the chances are successively reduced by the investors themselves - reacting to small price changes, abandoning the predetermined investment strategy and expecting higher returns than expected, lead most times at a loss.
You will read about successful investing later in this article.
Bitcoin - how to start investing in BTC?
Bitcoin is regarded as the most stable cryptocurrency - no wonder - we can observe the trajectory of Bitcoin since 2009. Despite its departure from the main function envisioned by its creator - Satoshi Nakamoto - namely payments, bitcoin is still it proves to be a means of storing value over time.
What is bitcoin?
Bitcoin is the first cryptocurrency to enter the mainstream consciousness. The popularity of BTC has made it a symbol of the entire cryptocurrency market.
Despite the long history of the development of the cryptocurrency concept, Bitcoin was created only in 2009. Its creator, the hitherto anonymous Satoshi Nakamoto, could be either one person or a whole team of developers
The biggest problem that arose from the removal of a central authority - responsible for the security of the network - namely double spending, was solved by handing over the power to the users.
In the Bitcoin network, transactions are confirmed by peer nodes - Nodes, or users who provide computing power through specialized devices commonly referred to as diggers.
Why do investors choose bitcoin?
Investors know Bitcoin very well -
The first increases, which were once considered a real phenomenon, are today - from the point of view of the current price - barely visible.
Despite its negligible transaction value, Bitcoin is an increasingly used means of payment and is likely to become the first widely accepted cryptocurrency for payments.
Join the 21st Century Investors and Buy Bitcoin Today!
Ethereum - how to start investing in ETH?
Ethereum has been present on the cryptocurrency market since July 30, 2015. Along with its entry, there was a certain revolution in the world of cryptocurrencies - it was the first cryptocurrency to start its history with crowdfunding. Currently, Ethereum is the one that is marked as the successor of Bitcoin, which may approach its price in the future.
What is Ethereum?
Ethereum is a decentralized block chain, like Bitcoin, its source code is public. The Ethereum blockchain has its own cryptocurrency, Ether (ETH), and a special programming language, Solidity, which allows easier interactions with Ethereum.
With Ethereum, users gained access to a simpler way to build decentralized applications that are resistant to censorship, outages and fraud. Ethereum allows the creation of security programs, the development of new payment methods, voting systems, but also various kinds of advanced smart contracts.
. PoS is based on the number of coins held, but also other factors such as the age of the assets.
Ethereum 2.0 went live in late 2020, but the full merger of the two block chains, which currently operate with two different consensuses, will happen around December 2021.
The continuous development, the team of star developers and the strong interest in the project from many representatives of commercial institutions reinforce the investors' belief that Ether is an investment gem among cryptocurrencies.
Ripple - how to start investing in XRP?
Ripple has attracted a lot of controversy among individual investors, but despite this, the cryptocurrency prices clearly show that XRP has established itself in the cryptocurrency community.
Due to the controversy surrounding the centralization of XRP, investors are worried about the further development of the cryptocurrency. The fate of XRP is closely tied to Ripple. If the company trades Ripple or decides to change its business, XRP will lose all its value.
What is XRP?
XRP has been in the cryptocurrency market since 2012. It was created natively as a cryptocurrency running on Ripple Labs' product system. One factor fueling the skepticism of many investors is that XRP is pre-mined, meaning it is fully mined and subsequent batches are added to circulation by Ripple.
Transactions in XRP are validated with a special consensus protocol created for Ripple products. RPCA, or Ripple Protocol Consensus Algorithm, is a much faster system when it comes to processing payments than the aforementioned Ethereum (15 TPS) or Bitcoin (7 TPS). RCPA processes up to 1,500 TPS, with the prospect of expanding to the 65,000 TPS currently managed by the VISA system.
Why do investors choose XRP?
XRP is widely chosen and used by huge institutions as the cheapest means of transferring value globally, which is not subject to fees like those found in interbank transfers.
For many investors, the fact of centralization and interest from larger institutions means stability and security, which makes them willing to buy XRP as an asset that can scale its price with exponentially increasing interest from the banking sector - it has now adopted to some extent by over 200 financial institutions.
Which banks have chosen to use XRP?
Another advantage is the transfer utility itself, which has the potential to greatly expand and replace the traditional VISA card system.
Litecoin - how to start investing in LTC?
Browsing cryptocurrency prices, you've surely come across Litecoin. Despite the fact that this is a cryptocurrency with a relatively low valuation, it has a very long history - it has been on the market since 2011. Interestingly, Litecoin is considered digital silver and the little brother of Bitcoin.
What is Litecoin?
Digital silver. Despite the fact that the title given by the community suggests a valuation not far from gold, Litecoin cannot boast the same price growth as Bitcoin.
Created in 2011, this cryptocurrency had one goal - to improve the usability of Bitcoin - and for this purpose the encryption algorithm was changed to a less advanced one. Litecoin does not use SHA-256 like Bitcoin, but instead uses Scrypt, which, being less advanced, allows for a reduction in the computing power required, making Litecoin's entry threshold for mining theoretically lower than Bitcoin's.
In 2011, Litecoin had the unique feature of handling 56 transactions per second, while Bitcoin only managed 7.
Charlie Lee described the position of LTC as a currency that will always be behind Bitcoin, but will complement it right in the field of transactions. According to his vision, Bitcoin was to be designed to handle large international transactions, while Litecoin would focus more on smaller transactions.
Why do investors choose Litecoin?
There is a funny correlation - when interest in Bitcoin increases, the price of Bitcoin increases, the number of transactions increases, and then... The price per transaction in Bitcoin increases dramatically. At that very moment, many more advanced cryptocurrency users are switching to Litecoin to complete their transactions at significantly lower prices.
Litecoin is attracting the interest of investors looking for a safe asset with lower price volatility than other cryptocurrencies. The value of Litecoin does not achieve the same huge increases as Bitcoin, but its holders have had the opportunity to multiply the value of their assets during every cryptocurrency market to date.
Dogecoin - how to start investing in DOGE?
In 2021, dog cryptocurrencies experienced a real renaissance - SHIB (Shiba Inu) CORGI (Corgi Inu) appeared, and the oldest of them - Dogecoin - experienced a real renaissance. Its price skyrocketed, reaching its ATH on May 8, 2021 - $0.73 (USD).
The cryptocurrency, meme, has captured the hearts of many early stage investors, indirectly contributing to the popularity of the cryptocurrency industry as a whole. DOGE is responsible for the success of the exponential growth of new cryptocurrency users, which have skyrocketed from 143 million in April to 221 million in June 2021.
What is Dogecoin?
Thanks to this cryptocurrency many users have asked themselves the question - cryptocurrencies? How to start?
Dogecoin's image has been significantly heated by Elon Musk via Twitter. The Dogecoin community, present on Twitter and Reddit, has also helped improve the image. The community is so organized that it has held a number of successful fundraisers, including the wrap of the car of one of Doge's NASCAR racers, which was featured heavily in the media.
Dogecoin is based on Litecoin. It uses Scrypt technology and works on a Peer-to-Peer basis. .
Why investors choose Dogecoin?
Many of these investors heard about DOGE through Elon Musk's Twitter feed and the news of its massive increases in value.
In countries plagued by rampant inflation, Dogecoin has become an alternative to fiat currencies - despite being an inflationary currency itself.
How to start investing in cryptocurrencies? Create a wallet!
One of the first steps you will take to invest in cryptocurrencies should be to create a cryptocurrency wallet. A safe place to keep your funds is the foundation of successful investing.
Interestingly, a cryptocurrency wallet does not contain cryptocurrency - it is a kind of intermediary, between the user and the network that holds the funds.
The private key - nomen omen - must be absolutely protected, and its leakage or loss usually means loss of funds.
Which wallet should I wear?
When investing larger amounts, in which 300 PLN or 70 USD is not a big part, it is worth investing in a hardware wallet, which is considered the safest form of storing funds. If you plan to invest smaller amounts, carefully calculate whether it is profitable to move the funds to the exchange portfolio.
Cold and Hot Cryptocurrency Wallets
In the cryptocurrency world, there is a separation between two main types of wallets – cold wallets and hot wallets.
Cold cryptocurrency wallets
Cold cryptocurrency wallets feature the highest level of security among wallets. These types of wallets usually take the form of highly specialized devices with special software. You can think of them as a safe in which the funds are very safe, but which requires a whole opening process.
Cold wallets are characterized by the fact that they are offline - connecting to the network is optional and users do so only to transfer money.
Hot Cryptocurrency Wallets
Hot cryptocurrency wallets are characterized by constant connection to the network.
Optional to store cryptocurrency in external wallets in mobile, desktop apps or dedicated web apps, you can store your money in an exchange!
Cryptocurrency exchange wallet
Undoubtedly, the most convenient form of storing funds is keeping them in a cryptocurrency exchange, where we can sell them at any time.
Which Cryptocurrency Exchange to Choose?
Choosing the cryptocurrency exchange where you will buy and sell cryptocurrencies should be well thought out. The stock exchange should meet the basic criterion of cooperation with the state financial supervision, which means transparency of the stock market and confidence that you will not face
When making your decision, check what the commissions are on the exchange and whether there are any trading pairs that interest you. To be sure about the exchange, also check the experience of the team managing the exchange.
The company, which operates the Egera cryptocurrency exchange, has been approved as a Small Payment Institution license and is actively working with government authorities to curb the possibility of fraud and money laundering. Egera's board consists of people with 9 years of experience in securing financial platforms and markets related to cryptocurrencies.
Pros and Cons of Cryptocurrency Exchanges
Plusy:
Low exchange fee,
Exchanges with users,
Ability to make your own offer of specific value.
Minuses:
Dependence on the depth of the market in the stock market.
Which Cryptocurrency Exchange to Choose?
Kantor cryptocurrencies is a place where you can make direct exchanges between cryptocurrencies and traditional currencies such as PLN, EUR or Krona. The exchange you choose should be characterized by a clear and simple interface, security and high speed - after all, you want to buy cryptocurrencies simply, safely and instantly!
Once you're signed up, each of your exchanges will take less than 30 seconds. The Egera cryptocurrency exchange is available in both a browser window and mobile app, so you can exchange cryptocurrencies whenever you need.
Pros and Cons of a Cryptocurrency Exchange
Plusy:
Low exchange fee,
Exchanges with the operator,
direct exchanges,
Independence from user offers and depth of exchange.
Minuses:
Higher commission than the stock market,
Rigid price set by the operator.
How to Invest in Cryptocurrencies Successfully?
A successful investment is one in which you do not lose - but win! For many beginners, this is the Holy Grail of investing, why do so many lose instead of win?
The main mistakes of novice investors:
There is no calculation
Novice investors do not calculate the operations on their funds, they do not calculate the cost of cryptocurrency transfer fees and the fees charged by cryptocurrency exchanges for the exchange of funds. At the end of the day, even though cryptocurrencies are growing, with frequent transfers, the novice investor is still in the red.
Frequent changes in cryptocurrencies
New investors often switch cryptocurrency pairs. Intentions vary, but most often it is due to the observation that another cryptocurrency is gaining in value faster, so they make the switch, hoping to earn more than their original choice. However, this calculation does not take into account the cost of switching and the fact that a cryptocurrency that has already risen in value may no longer rise as much as before.
Changes also result from sudden price reactions and from sudden changes in investment strategy, if any.
No strategy
Beginner investors often come to the stock exchange without a specific plan - they deposit money and buy a cryptocurrency that, in their opinion , has growth prospects. The strategy requires research on cryptocurrencies, their growth potential, and analysis of the cryptocurrency of your choice.
Without a strategy there are no goals - how much do you want to achieve? In what time frame? How much can you lose and what kind of correction will turn the market from bullish to bearish for you?
If you want to sleep soundly with the knowledge of smart investing, you need to set specific goals. Calculate how much you want to earn, set your sales to a certain price and wait. The only thing you still need to do is to set up an automatic sell in case the price suddenly drops below an acceptable price level.
With a strategy and an auto sell, you don't need to check your stock price every day. This will keep you mentally calm and reduce the chance of making a mistake to zero.
How to analyze cryptocurrency exchange rate?
Many believe that the price of cryptocurrencies can be analyzed. The objective of technical analysis is to estimate when to buy or sell an asset. In short, technical analysis assumes that cryptocurrencies follow certain recurring patterns.
Where can you check cryptocurrency prices?
At Egera, the exchange rate is updated live so you can find the perfect time for your investments. In addition, in Egera you will find an interactive chart that allows you to perform a complete technical analysis, based on which you will estimate where to buy and where to sell cryptocurrencies.
How to buy cryptocurrencies on a cryptocurrency exchange?
Buying cryptocurrency, on a cryptocurrency exchange, involves submitting a buy bid. In the offer, you need to specify the amount of cryptocurrency and the price at which you want to buy it. Once the offer is issued, it remains to wait for the comparison with another user's offer, in which the price and quantity are consistent.
How to store cryptocurrencies?
Depending on the type of investment you intend to make, you can store your cryptocurrencies in an exchange, where you will have the opportunity to react immediately and make a purchase or sale, or in an external wallet, where you will keep your cryptocurrencies for longer period of time.
Another option is to have cryptocurrencies on hand to make payments with. More and more cryptocurrency exchanges allow this solution - there are even special cards, with which you can pay in any store. At the time of payment, your account will instantly exchange cryptocurrency funds into the currency you intend to make the payment in.
How to transfer cryptocurrencies to an external wallet?
To send cryptocurrency to an external wallet, you only need the address of the wallet you are sending money to. If you are sending crypto from a crypto exchange, just log in and go to the withdrawals tab.
Can you buy cryptocurrencies without ID verification?
According to Polish and European legislation, the purchase of cryptocurrencies without verification, regardless of the amount, is not possible.
Is it possible not to buy cryptocurrencies?
Yes, there are other ways to own cryptocurrencies other than simply buying cryptocurrencies. There are a few alternatives, some require plenty of wallet, others a lot of time and patience.
Cryptocurrencies
Cryptocurrency faucets are websites and online platforms that give users small amounts of cryptocurrency in exchange for performing simple tasks. Tasks typically involve browsing ads, signing up for various online services, or giving an unspecified company a flattering review.
Cryptocurrency mining
. The profitability of such a business is usually low - but it is a possibility.
If you want to get cryptocurrency through mining, you should know that it is an expensive investment with a longer payback period.
How to mine cryptocurrencies?
. The most common of these are graphics cards or, in the case of Bitcoin, an ASIC - a special chip designed to perform a very specific task
Is it worth mining cryptocurrencies?
The profitability of cryptocurrency mining depends on many factors - the price of electricity, the cost of mining equipment - digging machines, the difficulty of mining and the price of the mined cryptocurrency. Very often, the investment expense is repaid over a longer period of time - half a year, sometimes even a year.
How to invest in cryptocurrencies on Egera?
Unlike cryptocurrency mining, in Egera you will not encounter any complexity. Instead, you'll be greeted with a simple and straightforward registration process, after which you'll be taken to verify your identity
Once you've verified your identity, all you need to do is deposit money - you can do it using a bank card, a traditional transfer or an express transfer. With the money in your account, you can start your investment adventure in the cryptocurrency market, which will make you call yourself an investor of the 21st century!