Things to Know Before Investing in Bitcoin

The digital currency, Bitcoin, has garnered a lot of interest in the investment industry around the globe. This new age cryptocurrency operates in the online world. It is an exciting and promising investment option. However, for the ones who do not know about Bitcoins, investing here is full of risk and suspicion. 

If you are planning to invest in Bitcoin or Bitcoin futures, there a few fundamentals that you should be aware of before you move ahead.

Bitcoins: What is it?

Consider it an electronic form of cash that lets us make online payments to anyone without going through any third party like a bank. Thanks to its unique characteristics, it is now considered as the internet currency of the digital world. Encrypted into computer language, its transfer is irreversible when compared to traditional digital currencies. 

Transactions made in Bitcoins or Bitcoin futures can be executed instantly. It runs on global computer networks. Therefore, the location of the investor is not much of an issue here. Immediately you can transfer this currency in any part of the world. It is this characteristic that makes it fast and global.

Things that you must know before investing in Bitcoins / Bitcoin futures

On the basic theoretical level, investing in Bitcoins / Bitcoin futures is quite similar to investing in online stocks. The principles of investing, risks, and procedures do not vary significantly. When all investment communities are ripe with Bitcoin discussions, getting the temptation to invest here is obvious. Here a few things that you must know beforehand.

  1. It’s not centralized

This currency is fully decentralized. Unlike fiat currencies like the Euro, US dollar, or the Japanese Yen, Bitcoin is a cryptocurrency that is not under any control of any third party. No central government or any financial institution controls it. Under this decentralized system, you, as an investor is a sole authority. You need not worry about any devaluation or seizure.

Understand it with an example, wherever you are, be it a sporting website or an online casino, invest without any regulation of a central authority. Here caution is always advised, as local laws regarding Bitcoins vary from country to country.

  1. It is digital

Bitcoins are a digital cryptocurrency; it can never attain any physical form. It is an electronic form that works entirely on the Internet. It can be traced only through blockchain technology. Another striking feature of Bitcoin is that you do not require sharing any personal information while transacting in this currency. It is available online, and you need to use your Bitcoin wallet ID in making transactions. You need not provide your confidential information in making any transaction.

  1. It highly volatile

With this emerging popularity of Bitcoin as an investment option, there is a word of caution for everyone. All cryptocurrency is highly volatile and has the inherent risks involved when it comes to investments. In simple terms, it means that the prices of Bitcoins / Bitcoin futures fluctuate from time to time. Investing here means that you should be prepared for a bumpy ride. This investment opportunity can turn into a profitable one only when you accept the fat of volatility associated with it.

Therefore, here the advice is to invest only that amount of money that you can afford to lose and manage to minimize the loss later on. Along with this, you need to do your calculations correctly. Always keep a clear profit target in mind when investing in Bitcoins / Bitcoins futures. 

  1. Learn before investing

  Here this is the most critical aspect. You need to learn to gain practical knowledge of buying and selling Bitcoin. It is crucial here. When you are well versed in the basics, you are in a better position to anticipate the direction of the market and make forecasts for the future. Start by searching for the safest and most accessible platforms for purchasing Bitcoins. Find a platform that has expert advisors and offers training programs as well. Next, what you need to do is to know how to safeguard the assets. You should have a wallet that is well protected from spammers, hackers and any other sort of cyber attack.

  1. Diversify

The popularity of Bitcoins / Bitcoin futures can also be attributed to the fact that it is now comparatively more comfortable to invest in such cryptocurrency. There are several kinds of crypto currencies, and bitcoin is just one of them. The good thing here is that one you are invested in Bitcoins / Bitcoin futures, the only way ahead is to diversify. It merely refers to an old maxim that you should not keep all your eggs in one basket. It would help if you learned to protect your investments by investing in another cryptocurrency that is available in the market.

HOW DOES BITCOIN MINING WORK

Emerging as one of the most reliable investment option, have you ever wondered from where the cryptocurrency giant Bitcoin comes from? Do you think about how the Bitcoin transactions are kept secure and under control? Come to think it, Bitcoin isn’t produced by the central government- it’s not printed on paper or deposited in banks nor are given away through cheques. They are actually mined. 

Bitcoin mining is the cornerstone of the Bitcoin network, which is performed by specialized computers. The task endowed upon the miner is to confirm the Bitcoin transaction as securely as possible. Now, without any sugarcoating, I agree it is true, that mining any cryptocurrency is scrupulous, expensive and only intermittently rewarding.

Regardless of that, mining has a captivating demand for many investors interested in cryptocurrency because of the fact that it is a give and take process, where in return of their work, miners are given cryptocurrency as a reward. With Bitcoin, miners use specialized software to crack complex mathematical or computational problems and are provided with a certain number of Bitcoins in exchange, as a reward along with transaction fees. This is a smart way to issue the currency and also creates an enticement for more people to opt for mining. If you are technically elite, there is no reason why should not go for it.

Bitcoin mining is the process of adding transaction records to Bitcoin’s public registry of past transactions called “blockchain”, which serves to confirm transactions to the rest of the network as having taken place.

If there are any attempts to re-spend coins that have been used already, then the nodes of Bitcoin use this blockchain to distinguish between the permitted transaction and such fraudulent attempts. 

The process of mining, in simple terms, is that you have to guess a random number that would satisfy the equation generated by the system. The chances of you winning at this game are directly proportional to the number of accurate guesses you make per second. So the more, the merrier! When you hit bull’s eye, and earn the Bitcoin and become eligible to go to the next step of Bitcoin transactions.

When your mining software makes a correct guess, your program determines which of the currently pending transactions will be grouped together to the next block of transactions. The compilation of the block is your earnings and marks your place in the transaction ledger. Once you’re a part of this, your solution will be sent to the whole network so that it can get validated by other computers. Each computer that validates your solution updates its copy of the transaction ledger, adding the transaction that you choose to include in the next block. 

After this procedure, the system generates a fixed amount of Bitcoin which you get in return for your efforts and time.

So, in order to start mining, you require good Bitcoin Mining software. It takes somewhere around 10 minutes for a calculation to be completed, by your computer obviously! The catch here is that, the problems only get tougher and way more difficult to crack steadily. Hence, the accuracy of your answers will depend on the capability of the software you are using. 

That being said, it is pretty obvious that the more mining power a network has, the harder it would be to guess the answer i.e. the difficulty of the problem gets auto-adjusted based on the miner count, which is called “Mining difficulty”. This is done in order to minimize the number of correct answers, which in turn would keep the number of Bitcoins generated in check. 

Therefore, primary purpose of mining is to allow Bitcoin nodes to reach a secure, anti-corrupt consensus. This serves the purpose of circulate new coins in a decentralized manner as well as drive people to provide security for the system.

Best‌ ‌Altcoins‌ ‌To‌ ‌Swipe‌ ‌

In the world of cryptos,  Bitcoin has been the King for a long time! But with every passing year more and more such digital currencies have emerged and given tough competition to it. From the ocean of altcoins, it’s almost impossible for a person to select which ones are the best for investment. There almost 2000 altcoins out there, speaking of January 2020! 

Let us examine some of the most important altcoins which you can swipe based on their popularity, value and exchange rate. .

Ethereum (ETH)

Ethereum was launched in 2015 and is currently the second largest digital currency, after BTC, despite lagging behind by a huge margin. Like Bitcoin, Ethereum is also a decentralised digital currency which is known for its security from third party interferences and strong anti- fraud measures.The cryptographic token is called Ether (ETH) on which all the applications run . If a developer wants to run applications inside the platform of Ethereum, he would require Ether. 

Ethereum is used to decentralize, codify, secure and trade stuff. In the first week of January 2020, ETH stood at $142.54 per token, with a market capital of $15.6 billion. 

Ripple (XRP)

Launched in 2012, Ripple is a real-time international settlement network. It  offers instant, precise and affordable international payments. Ripple “enables banks to settle cross-border payments in real-time, with end-to-end transparency, and at lower costs.” Unlike Bitcoin and some other Altcoins, Ripple’s consensus ledger doesn’t require mining. All of Ripple’s XRP tokens were “pre-mined” before launch, so you cannot create XRP but only use and consume, thereby reducing the usage of computing power and minimizing network latency. In this way, Ripple sets itself apart from bitcoin and many other altcoins. 

Ripple has been successful so far. By the end of first week of January 2020, Ripple had a market cap of $9.2 billion with a per-token value of $0.21.

Litecoin (LTC)

If Bitcoin is gold, Litcoin can be called silver. With an intent to follow the footpath of Bitcoin, Litecoin was launched in 2011.  It was created by Charlie Lee, who happens to be a MIT graduate and former Google engineer. Litecoin is also an open source global payment network which is decentralised. In comparison to Bitcoin, Litcoin has a faster block generation rate. Litcoin held a market cap of $3 billion in the first week of Jan 2020 giving it the status of the sixth largest cryptocurrency in the world  

Monero (XMR)

Monero is an open source cryptocurrency, which is secure, private and untraceable. This was launched in April 2014 and eventually became popular among crypto investors. The development of this cryptocurrency takes placed based on donatiions and depends on the community. Monero focuses strongly on decentralization. With a special technique of “ring signatures”, it maintains its privacy.  interest among the cryptography community and enthusiasts. It’s per token value revolves around $57 as of January 2020. 

Tether (USDT)

Being one of the first and most popular  member of so-called stablecoins, Tether is the type of cryptocurrency which aims to peg their market value to a currency or a reference in order to reduce volatility. A major drawback of digital currencies is that they experience unexpected periods of dramatic highs and lows in market value. Tethertattempts to bring fluctuations down in order to attract users who may otherwise be hesitant to invest. 

Launched in 2014, Tether describes itself as “a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.” On Jan. 8, 2020, Tether was the fourth-largest cryptocurrency in terms of  market cap that was $4.6 billion and a per-token value of $1.00.

Hence , these are few of the best altcoins to swipe based on the current scenario of the crypto world. But again, due to the enormousity of  the digital currencies, there are many other reliable altcoins available, which may become popular with time! You just have to wait and invest wisely. 

BEST ETHEREUM FUTURE MINING POOL

Mining is one of the fastest and the best way to earn rewards. The task of mining can either be done at a mining website or you can set up your own mining program. To set up your program you need to buy the ETH mining hardware. After that you will be able to join mining pools where all the other miners come together and share their power to further mine. 

  • Ethpool

 

ETHpool.org is one of the few official mining pool. In fact it is one of the most popular pooling site. After sometime, the pool stopped accepting new users because of high workload which was generated. If you are an Ethereum Hunter then this is the forest you are looking for. Ethpool has about 31% of hashrate. You can also buy eth futures from ETHPool.
To start off, you need C++ETH Version of Ethereum
Market share: 23%
Current Hash Rate: 423.1 GH/s
Fees: 1.0%

  • Nanopool

The recently developed site has earned commendable amount of fame and crowd on its userface. It is one of the largest mining pools of Ethereum. The minimum hashrate which has been recommended by most of the senior traders is 5 Mhesh/s. The pool is equipped with realiable servers which are accepted globally. This too has a very intuitive interface. It is very convenient to use as well. Nanopool has a high minimum payout amount. If you do not wantto wait for a long time for payment, then do not connect from 3 farms. It generates around 13% of the hashrate in the network. 
Market share: 8%
Current Hash rate: 16,846 GH/s
Fees: 1.0%

  • F2Pool

It was one of the most popular pools n 2019 and still holds a stern position in today’s market. The network servers of this pool is located in China and other Asian countries. It has a few networks in USA as well. To enter this pool too, you need to complete the whole registration process. The pool is open and accessible. The site contributes to about 11% of the hashrates. It is highly recommended in Asia.
Market share: 10%
Current Hashrate: 18.39 TH/s
Fees: 3.0%

  • MiningPoolHub

The mining pool enables you to exchange digital coins with the help of payment systems and also allows you to mine ethereum. The algorithm used in this pool is PPLNS. The Pool has about 7.6% of the hashrates. However, this pool is used by the professional Ethereum hunters. The server has multiple locations globally which ensures better and much more reliable mining process.
Market share: 3.7%
Current hashrate: 7.05T/s
Fees: 1.0%

  1. DwarfPool

It is a very versatile pool according to the reviews of senior miners. Ethereum, Monera and many other coins can be mined on this network. It constitutes of 4.3% of the hashrate in the network. While withdrawing funds, you need to have minimum 1.01 ETH or else you will not be able to cash out.
Fee Charged: 1.0

There are a few other mining pool, but you need to review and find your comfort in anyone of them. Even though a pool might be the best one, you might not click or get very user friendly with it. so explore and find your pool. If you are a beginner, then always go with a pool with lower hash rate. In case you want to join a crypto league, then choose the right one. However, mining pools will give you greater profits.