Reasons to invest money into Crypto
Here within are a few helpful points for Cryptocurrency beginners from my learning journey. After watching the developments of this new financial instrument for almost ten years, I began my adventure. I did a lot of research along the way, before choosing, the entry points that have the benefits for beginners to feel safe. I hope you enjoy your journey as much as I am enjoying this space.
The reason Crypto was invented was due to fiat continually being devalued by central banks printing more money to inject into the economy in a so-called recovery attempt. Once upon a time currencies were exchangeable for gold as the tender of value. Since reserve banks dropped gold, the value of currencies has fallen prey to chronic inflation.
When I initially looked into crypto it was a bit scary. Now I see crypto is very much a useful currency. When you consider that it is an investment, you will see that it has performed very well even through tough times of crisis. Yes, these cryptos are volatile and one day they are up 30% next they are down 26% but they do go back up again. Over time the value average is generally increasing.
In 2009 Bitcoin was created and it took until about 2015 before becoming widely known. In 2017 it skyrocketed in value in a way that no one had ever seen before and those that got in early were rewarded with millions. Many withdrew their fortunes and the value plummeted early 2018 before beginning its gradual return in value. By the end of 2019, the value was looking to skyrocket again and again some withdrew, probably to enjoy Christmas.
Then early in 2020 Covid-19 struck and in March all financial markets dropped to an all-time low but the crypto recovered the fastest proving they had a more stable value. In fact, there is so much confidence in crypto that as of August 2020 Bitcoins market cap was larger than the Bank of America and New Zealand together.
Cryptocurrency is here to stay and as with the original fiat currency, which also started with too many options, there are many options. Over time only the most functional and most adopted will remain. It is a race to see who can be the best in this new aged space. Whether you see it as gold or fiat it' a store of value that will only increase with global support and adoption.
What is the story behind these crypto gems
Listed below are a few gems in their order of market dominance by market cap. I have gathered some points of interest for you to see which you prefer.
Bitcoin on Monday 17 August broke the $12K physiological barrier and is now needing to cross the next threshold of $13K. Bitcoin is not far from breaking the previous high of 2017 and is poised by experts to head to ten-fold this current level within the next two years. All cryptos balance on the movement of Bitcoin, so when it goes up and down so do the others. There are some cryptos emerging that defy this logic like FYI a DeFi that has grown from its birth in January to a value just shy of overtaking the value of Bitcoin.
Bitcoin is Proof-of-Work which means the miners have to solve complex computation puzzles to win a block prize of 6,25BTC. These rewards were a design that Satoshi Nakamoto put in place to drive the adoption of miners required for the decentralised network to operate. Blocks are recorded over the whole network but only one miner receives the reward. Your transaction is recorded in one of these blocks and cannot be altered. No one person controls the network or its value and Bitcoin is accepted globally.
Ethereum was born to improve on Bitcoins concept, so when they designed the ecosystem they wanted it to be more useful and functional than just a currency. As with any system they have had their fair share of challenges to overcome and for the last two years, they have been working on Ethereum 2.0. This new development will make the ecosystem stronger and more stable as well as faster. Ethereum's value comes in as it is the most stable network of choice, chosen by thousands of other crypto’s and Dapp’s which are based on it and are serviced by the Ethereum network. Even the South African Reserve Bank is using the Ethereum blockchain, that must say something about its value.
Ethereum rose on Friday 14 August 2020 in value to its highest point in two years. The previous highest value point was just over two and a half years ago when bitcoin almost reached $20k. There is just over 300% more to climb to reach its all-time high. Ethereum's value has increased over 100% in the last year alone despite the Covid19 market crash in March 2020. In fact, looking back at the graphs it has grown 103% in the last three months alone after the crash knocked its previous gains.
Ripple was created as an international inter-bank solution but banks are not the only ones who were interested. Financial companies are using RippleNet to connect to customers across the globe with secure, and quick, with inexpensive fees for financial transactions.
Created to give people a sense of stability with the aim for its value to be pegged one-to-one with major fiat currencies. They connect businesses and people in a digital way that meets with regulations.
Brave was created with the aim to replace the current model of browser which is full of tracking based adverts. Rather get paid to watch adverts and be able to tip site owners for their great content. Brave is gaining market share as people become aware of the benefits of privacy and speed. Users opt-in to an inclusive and rewarding private ad experience. The Brave browsers anonymously monitors the users attention and rewards both the publisher and user with BAT.
Created with the unbanked population in mind, and aimed to allow payment for electricity and airtime and to pay for goods and services, both in-store and online. Their plan was a success and landed up with over six million users within a short time. Electroneum’s ecosystem is in 140 countries, their AnyTask is similar to People per Hour for remote work opportunities to earn Electroneum. Electroneum boasts a very low energy consumption for processing millions of transactions a day, compared to some other popular cryptos. The transaction validators are trusted organisations who can benefit from the mining rewards for processing transactions. Transaction speed is seconds from one side of the earth to another.
If your need is to contract me to create content for you then find me on AnyTask where I do work for payment in Electroneum.
Your cryptos don’t cost an arm and leg in transaction fees
The cost of sending your cryptos of choice is reasonable depending on the coin’s transaction fees. Transaction fees don’t depend on the value and can cost from a few cents to a couple of dollars and each crypto has a minimum amount that you can send. You can send to any exchange or wallet address NB just make sure the coin address is for the exact same coin as the one you are sending else it will get lost in the system. (Can be sometimes retrieved but at a very high cost)
A few wallet and exchange options
Wallets come in hot and cold options, cold being the safest. Wallets can send and receive and can be on a computer or your mobile. Exchanges facilitate your need to change the currency but also many allow you to partake in trading. Not all wallets and exchanges service all coins so do your homework if you want to play with some of the unusual options. Beware that these newer coins are still very volatile and you can lose your investment or strike it lucky and mint a million. Referral benefits both of us so I've included my reference if you feel like joining using it, else use a friends.
Luno has an easy local bank deposit and withdrawal solution which reflects within 48 hours in your app. Get a referral reward of R25 for each of us once you purchase crypto to the value of over 0.1BTC while using referral code 8JQZH9 during sign up to benefit.
In-app select buy and select deposit fiat and follow the instructions, then convert the fiat to Crypto of your choice once it lands in your wallet. From there you can trade, send and withdraw with ease.
Security: 24hr email confirmation for enabling transactions with 2-factor authorisation for all transactions, using an app like Google Authenticator.
Choices of crypto:
ETH - Ethereum 102.58% growth over the last 3 months
XRP - Ripple 41.36% growth over the last 3 months
LTC - Litecoin 26.90% growth over the last 3 months
BTC - Bitcoin 24.86% growth over the last 3 months
Cost of conversion fiat to crypto about 15%
I found Luno easy to use and informative, just the cost of conversion from fiat to crypto that I found a bit on the high side.
Download app the:
Binance had an easy local deposit and withdrawal system which reflects within 24 hours but is currently suspended (apparently due to restructuring maintenance), but you can buy crypto with a credit/debit card. Once your deposit reflects in your wallet you can buy your crypto of choice. You can leave it in the exchange if you plan to use the exchange's features or transfer to a safer wallet option like a cold wallet.
Get a referral reward of 10% discount for your conversion fees to crypto or for any trades with other cryptos on the exchange, use referral code DZSMFTLV while signing up to benefit.
Security: email confirmation for enabling transactions with 2-factor authorisation for all transfer and purchase transactions.Choices of crypto including the above-mentioned as well as banking solutions of saving borrowing, investing and trading.
Choices of crypto:
These including the previously mentioned:
ZIL - Zilliqa 155.54% growth over the last 3 months
BNB - Binance 38.07% growth over the last 3 months
USDT - TetherUS Stable Coin 0.45% growth over the last 3 months
BUSD - Binance Stable Coin -0.11% contraction over the last 3 months
Cost of conversion fiat to crypto is about 0.1% and the same to any other crypto of choice through instant spot trading of cryptos. Withdrawal process is just the reverse: sell your crypto for fiat and request a withdrawal to your bank account.
Crypto.com is setting up local deposit and withdraw system in each country but not yet fully functional in all, but you can buy crypto with a credit/debit card and fuel your account with fiat for 0% transaction fee.
Get a referral reward of $50 in your wallet for 1000 CRO staked into your wallet for the MCO Platinum Visa credit card for your use internationally. Use referral code 84wytgsgkw to benefit.
Credit Card is free and with a 5,000 CRO staked for 180 days or six months in your wallet you get a red card with 2% CRO cashback rewards on selected spend, free Spotify (+-$12 value), no ATM fees for first $400 withdrawal then 2% fees thereafter, $5,000 inter-bank transfers for free then thereafter 0.5%. Upgrade for better options with 10,000, 100,000 or 1,000,000 CRO staked. Or settle for the most basic option with the least benefit for free.
Earn up to 18% interest on fixed duration staked fixed deposits of CRO, how much better can it get your coins increase in value and you get paid interest each week which increases the quantity of coins at the same time.
There are many choices of crypto, including the above-mentioned, and banking, investing trading solutions as well as borrowing fiat against your crypto.
Cost of conversion fiat to crypto and Crypto conversion fees 0.16%
Choices of crypto:
These including the previous mentioned:
CRO - Crypto.com 145.01% growth over the last 3 months
Other initial buying options are: BCH, EOS, XLM, VET, ENJ, BAT, PAX, TUSD, ZRX, LINK, MATIC, CELR, FET, USDC, MANA, DAI, MKR, GNT, PAXG, OGN, COMP, QTUM, ICX, ONT, ONG, RVN, KMD, NEO, ETC, WAVES, ONE, DASH, ADA, ARK, ARDR, ERD, XTZ, NANO, XSGD, USDM, Plus there are thousands of tradable crypto options to choose from.
Download app :
Final thoughts on the future of investing in cryptocurrency
There is no better time to start than now, in fact the best investment strategy is a set amount each month and no matter the price per unit you will gain incrementally. Since I started I have watched my small contributions grow leaps and bounds. Some weeks are better than others but I am tracking each week's progress and this strategy is working. The evidence is clear the future is in crypto.
Your banks and governments are even looking into how to future proof themselves by implementing blockchain technologies. Crypto currency is as safe as you are wise, don’t ever believe someone before you have done your own research.
Let me know in the comments how you feel about crypto, and what you have seen changing in preparation for the new age of financial solutions.