The world of cryptocurrencies has exploded in the past few years. The dramatic rise in the price of popular cryptocurrencies such as Bitcoin or Ethereum dominated the headlines over the past two years. Stock market parlance such as ten-bagger and multi-bagger is now being applied to cryptocurrencies as their market capitalization, traded volumes, and prices continue to peak. The value of the cryptocurrency market surged 1200% even as the total market cap of these digital assets rose to $230 billion as of 2017, according to CoinMarketCap. Such exponential growth has caught the imagination of newbies and investors in the financial market, who now want to jump on the bandwagon and ride the cryptocurrency wave.
Choosing the best Bitcoin exchange
If you are interested in investing in cryptocurrencies, you may be wary, perhaps because you are in unfamiliar terrain and are inundated with so much information that getting started in cryptocurrencies becomes an overwhelming experience. Given that Bitcoin is the most popular cryptocurrency in the market today, just as one would start off with index heavyweights or blue chips in a stock market, we assume you would want to start with Bitcoin in the cryptocurrency market. You would first need to identify a popular Bitcoin exchange such as bestbitcoinexchange.io. Bitcoin exchanges are an integral part of the virtual currency world and its ecosystem. The choice of a Bitcoin exchange would be underpinned by factors such as safety, transparency, and reliability. Further, only a few exchanges allow you to buy Bitcoin with fiat currency such as the GBP or USD. You would then need a wallet to store your cryptocurrency. A wallet can simply be termed as a crypto bank account. One of the easiest ways to get a wallet is by downloading it from a cryptocurrency exchange.
Choosing Bitcoin – the poster boy of cryptocurrency
You already know that the highest buzz and hype in the cryptocurrency market is around Bitcoin, although, other cryptocurrencies such as Ethereum have also seen action. Bitcoin is the first form of truly digital money and the most widely used cryptocurrency with market capitalization of nearly $30 billion. Bitcoin is a currency of choice because it is deflationary, borderless, and its core component are the single-purpose computers that verify transactions, known as miners. The computational speed of the Bitcoin network is one of the fastest in the world. Bitcoin is currently the most common trading pair, which means that, in order to invest in other tokens or projects, you’ll most likely only be able to trade/buy it against Bitcoin. Thus, you will need to hold Bitcoin to make most trades, which underscores its acceptability and pervasiveness.
Finally, there’s the network effect. Just as a stock becomes a blue chip because people invest in it, the people buying Bitcoin strengthen its value. According to a Finder Survey, of the 1.1 million Brits who have invested in cryptocurrency, 79% invested in Bitcoin. The buyers largely comprise millennials and GenExers but the baby boomers are also joining this cohort. A recent LendEDU survey of 1000 Americans shows Bitcoin as the most popular currency among millennials, with 76% stating that they would invest $10,000 in Bitcoin. Cryptocurrencies are no longer the inaccessible trading preserve of tech-insiders and, today, cryptocurrency forms a major part of the portfolio of common investors.