Understanding Cryptocurrency Basics | What is a cryptocurrency, Advantages, and disadvantages

UNDERSTANDING CRYPTOCURRENCY

In this write-up, you will get your hands on the information related to understanding cryptocurrency. Explore the meaning, origination and uses of Cryptocurrency its advantages and disadvantages.

PayPal to allow Cryptocurrency buying, selling, and shopping on its network or Unicoin bags $5 million from global investors at a valuation of $20 million, you might have read such news headlines and wondered what Cryptocurrency is.

With plenty of attempts to create digital currency during the tech boom, a number of them emerged but inevitably failed.

However, with time, a new form of digital currency emerged which we know today as Cryptocurrency.

Alongside, know the types, working, advantages, and disadvantages of it. We have also included the concept of Cryptocurrency mining and the market of Cryptocurrency in India and the world.

Not only this, you will get to know the difference between Cryptocurrency, Bitcoin, and Blockchain along with a few more details on the topics. Let’s get along and explore.

Also Read – Two step verification advantages and disadvantages

What is Cryptocurrency?

Cryptocurrency can be designated as a method of payment which can be exchanged online for services and goods.

It is a purely internet-based or virtual medium of currency exchange working on the system of cryptography or the cryptographical functions to initiate the financial transactions.

• It is a decentralized medium of currency that uses Cryptography for verification and facilitation of every transaction.

• For obtaining decentralization, immutability, and transparency, cryptocurrency’s primary functions on Blockchain technology.

• Moreover, they are immune to the traditional methods and manner of government interference and control.

• The most appealing feature of Blockchain technology is security.

• Blockchain can be defined as a shared public ledger having all the transactions within a network to date.

• Every individual on the network has access to every transaction that occurs along with viewing the balances of other individuals.

• Various companies across the world have issued their currencies, known as tokens.

• The currency is issued by the companies can be specifically traded for the goods and services offered or provided by the company.

• The transaction of cryptocurrencies between two parties can be initiated through private and public keys.

• Moreover, comma cryptocurrency transactions can be completed with minimal processing fees as opposed to the fee charged by other financial institutions.

Where did Cryptocurrency originate?

Bitcoin was introduced as the First cryptocurrency in 2009. However, various attempts before that were made to create a digital currency.

The previous attempts encountered an issue of double spending problem which hindered the introduction of cryptocurrency before the introduction of Bitcoin.

• A computer engineer Wei Dei introduced the concept of cryptocurrencies in 1998 by publishing a paper discussing “B-money”. The paper discussed the idea of digital currency.

• Later in 1998, Bit Gold emerged as another attempt towards the introduction of cryptocurrency by Nick Szabo.

• It aimed to create decentralized digital currency but was shattered by the traditional financial system.

• While both the attempts could never be officially launched, they stood as a driving factor behind the Bitcoin we know today.

Later in 2009, the white paper called Bitcoin was published by Satoshi Nakamoto that described the mechanism of the Bitcoin Blockchain network.

That marked the advent of events in the history of cryptocurrencies that followed.

What is Cryptocurrency used for?

A significant share of individuals considers cryptocurrency is as high-risk investments.

However, the fact that cryptocurrency is a decentralized digital currency is getting lost amidst all the speculations regarding that.

Cryptocurrencies have a wide spectrum of powerful uses which are as follows:

Low-cost money transactions

Substantial use of cryptocurrency can be designated as making and receiving payments at a high speed and at low costs.

The money transacted in the system would have paid higher fees had they gone through a financial institution.

Moreover, they would have taken days if not hours to be sent and received.

It serves as an excellent payment system to initiate international money transactions.

Interest earnings

Successful trading of cryptocurrencies in place of profits would require dedication, skill, and experience.

Despite this, plenty of cryptocurrency holders trade on their coins to obtain long-term gains.

Crypto owners can gain high interest on their holdings, being a platform offering high interest to the owners of cryptocurrencies.

The interest earned on cryptocurrency Holdings is undoubtedly far higher than the interest rates one can get in traditional financial institutions.

Decentralized alternative wealth channel

Jurisdictions having strict rules of laws could make you realise that the occurrence of your assets being frozen is comparatively higher than you might ever assume.

It only takes an allegation, accuses, or financial misconduct to make it happen.

Cryptocurrency can be a powerful and unique alternative when it comes to an alternative wealth.

It is a decentralized currency with an individual having private keys to their wallet which cannot be frozen by any authority.

Private transfers

Various digital currencies can enable you to make anonymous financial transactions.

The individuals do not have to explain their transactions to a bank for governing authority and avoid any unnecessary bureaucratic processes.

It serves as an effective medium of transferring and receiving the money to and from anyone without disclosing anything.

Sending non-cash remittances

The ability to send non-cash remittances stands as powerful use of cryptocurrencies.

Non-cash remittances can be initiated from anywhere in the world to any place depending on the digital currency opted for.

Types of Cryptocurrency

There used to be a time when people could count the types of cryptocurrencies on their fingers.

However, with the rapid growth of the cryptocurrency market and expansion of its types, it has become a bit daunting.

The types can be traced to the three main types of cryptocurrencies.

With Bitcoin being the first to be brought by Blockchain followed by altcoins, which were the new Blockchain created. The next and third main cryptocurrency type stands as tokens or dApps.  

Bitcoin

Bitcoin is a digital currency that can be used for trading or sending to other individuals as a gift.

It can be attributed to the money we normally used but in digital form. Moreover, cryptocurrency is decentralized; this implies that it does not have any regulatory authority or organization to handle it.

• The idea of Bitcoin has put forth the world in 2009 which is accredited to Satoshi Nakamoto, the real name being unknown till now.

• The name of the creator of Bitcoin still stays anonymous till date.

• The primary use of Bitcoin stood as trading of goods and services on the dark web.

• Significant growth in Bitcoin was experienced in the year 2013-14 which eventually slowed down to a certain extent later on.

• However, the year 2017 experienced a significant rise in the Bitcoin market which never experienced a downfall until now.

As of December 2017, the price of a single Bitcoin was $20,000. This was a significant rise in price as compared to the price of Bitcoin in January 2015.

Altcoins

When tracing the number of altcoins, it can be counted in thousands in existence. Altcoins are nothing but the alternate version of Bitcoin carrying minor changes in their features.

However, not all altcoins shall be designated as the alternate versions. A few of them can be quite different from Bitcoin having different uses and purposes.

Tokens

These are the most interesting of all the types of cryptocurrencies alongside being completely unique, as they do not have a Blockchain.

Tokens usually have their applications in decentralized applications or dApps which can be built on Blockchain.

Moreover, tokens come with a price to be sold for which makes people buy them.

People often buy tokens at lower prices and end up selling them when they are being traded at high prices.

How Cryptocurrency works?

Trading of goods and services in return for money has existed for a long time now.

There have been various methods of exchange for centuries.

However, the currencies we use today are the printed bills or coins which are issued, tracked and governed by a centralized authority.

The introduction of cryptocurrency in 2009 by Satoshi Nakamoto revamped the idea of money.

Cryptocurrencies are the digital currency which runs on a revolutionary monetary system which does not have any regulatory authority alongside having various types and functions of it.

Blockchain supports every digital currency and insurers that every cryptocurrency is tracked properly whether being used or not.

Cryptocurrency Blockchain or Ledger

Cryptocurrency maintains a ledger having all the transactions which are made public for ensuring complete visibility.

It drives everyone to play a fair game and eliminate the risk of double-spending.

The ledger has the list of entries stored in a database which cannot be altered by anybody without meeting the specific conditions and requirements.

Moreover, the ledger is not owned by anyone rather it is self-run and self-governed without any third party interfering in it.

Verification of cryptocurrency transactions

Investing in cryptocurrency begins by a major cryptocurrency exchange when you purchase it.

Primarily, the transaction remains unconfirmed and unofficial until it is verified and confirmed.

Upon confirmation, the transaction of purchasing cryptocurrencies is recorded in the transactions of the Blockchain permanently.

The verification of the transaction and listing it on the public ledger is executed by cryptocurrency miners.

This process involves the use of powerful computers for solving complex math problems which serve as the key to the verification process.

As the cryptocurrency mining is open-source, anyone has the power to confirm the transaction by solving the problem which leads them to add a block in their transaction ledger.

This process is known as the proof-of-work system.

Top 10 Cryptocurrencies

The year 2017 was the year of cryptocurrency where the market capitalization of cryptocurrency experienced an elevation from 18 billion dollars to 800 billion dollars in a single year.

The leading cryptocurrency in the world, Bitcoin experienced a gain of over 1300%. However, other cryptocurrencies like Ripple gained over 36000%.

However, 2018 experienced a halt in the market capitalization of cryptocurrencies bringing it to around $200 billion.

Nevertheless, with over 5,000 cryptocurrencies exist currently making it an overwhelming task to pick the top 10 cryptocurrencies for investment.

Get hold of the leading and best performing cryptocurrencies around the world.

Bitcoin (BTC)

It is one of the commonly known cryptocurrencies alongside deemed the original one created in 2009 in form of open-source software.

Under the name Satoshi Nakamoto, the first digital currency was established by White Paper author.

Bitcoin allows the users to initiate direct transactions without involving an intermediary.

All the users have access to all the transactions through the open public ledger alongside being secure by the strict Blockchain algorithms.

Despite everyone being able to see the transaction, only the owner of the particulars Bitcoin can decrypt it with a private key.

Moreover, there is no governing authority making it a decentralized system.

The current market valuation of Bitcoins $17,995.23 (as on 19^th November 2020).

Bitcoin Cash

The concept of Bitcoin can be traced back to the idea of modifying Bitcoin into a more practical alternative for initiating small day-to-day payments.

As of May 2017, unless a fee was paid, Bitcoin payments stretched for four days which was deemed large for smaller transactions.

A slight modification in the code resulted in the release of Bitcoin cash on 1st August 2017.

The size of blocks was increased by Bitcoin cash which enabled more number of transactions and faster processing.

Currently, the market cap rank of Bitcoin Cash stands at number 7 having a price of 247.64 dollars.

Bitcoin SV (BSV)

The aftermath of the 2018 split or hard fork of Bitcoin Cash is the Bitcoin Satoshi’s Vision.

This offbeat version of Bitcoin resembles the primary purpose and features of Bitcoin such as decentralization and payment alternative.

Bitcoin Satoshi’s Vision often referred to as Bitcoin SV, is listed on the Crypto exchange as BSV.

This can be trusted by businesses to ensure stability and skill required to commit investment alongside the resource for using BSV Blockchain.

After its launch in 2018, it experienced various ups and downs while settling onto a steady growth since Nay 2019.

Bitcoin SV usually trades around 130 USD to 150 USD with its all-time high been 252.09 USD.

Litecoin (LTC)

Launched as an alternative to Bitcoin in 2011, Litecoin is an open-source network like other cryptocurrencies that allows Global payments while being completely decentralized.

It was released by Charlie Lee who was an ex-Google employee.

It supports faster transaction times while having a coin limit of 84 million as opposed to Bitcoin which is 21 million.

It operates on different algorithms than Bitcoin, “SHA-256”, which is “scrypt”.

Litecoin has a comparatively smaller block generation time with increased maximum coin limit.

The market valuation of Litecoin is 4.6 billion dollars with the current price of $78.

Ethereum (ETH)

Based on Blockchain technology, Ethereum is an open-source platform type of cryptocurrency which was created in 2015.

Alongside tracking the ownership of the digital currency transactions, Ethereum Blockchain emphasizes on running the programming code of any decentralized application.

This allows the application developers to use the cryptocurrency for paying transaction fees and services on the Ethereum network.

The market value of Ethereum is 40.6 billion dollars with the current price being 476.79 dollars.

The market cap rank for Ethereum cryptocurrency is second among all the cryptocurrencies.

Ripple (XRP)

Having a unique selling point, Ripple cryptocurrency was made by Ripple Labs carrying a purpose of high-speed alongside low-cost money transfers all across the world

Ripple is also designated as the Ripple transaction protocol or Ripple protocol.

It was launched in 2005 for putting forth a secure payment system for the members of an online community through a global network.

The development of a digital currency system in 2011 allowing transactions to be verified by consensus of the members of the network was initiated by Jed McCaleb.

This network was designed to eliminate the centralized exchanges of Bitcoin while using less electricity and performing faster transactions.

Thether (USDT)

Issued on Bitcoin Blockchain, Thether is primarily used to facilitate the trade between cryptocurrencies with a fixed rate to US$. This allowed the traders to take benefit of the trading opportunities

In original words, “Thether converts cash into digital currency, to anchor or ‘Thether’ the value of the coin to the price of national currencies”.

The current market cap of Thether is over 15 billion dollars which were figured after experiencing an increase of almost 4 times.

EOS

Considered as one of the best cryptocurrencies, EOS adopted the smart contract features of Ethereum and is leading towards rapid growth and popularity.

The growing adoption of EOS can be accredited to the fact that the network allows free transactions

This platform was developed by a private company names ‘block.one’, based on the white paper published in 2017, which released it on 2^nd June 2018.

Considering the performance, it has not begun generating significant returns.

However, with the current market cap of 2.5 billion dollars and a price of 2.64 dollars, it tends to be a promising one in the future

Tezos (XTZ)

A new player in the cryptocurrency market, Tezos has emerged with immense potential in the system with a promising annual return of around 7%

Also, Tezos is a decentralized and open-source Blockchain network that can be used to initiate direct transactions and deploy smart contracts.

The native cryptocurrency for Tezos Blockchain is referred to as tezzie or tez which carries a ticker symbol XTZ.

The total market capitalization of Tezos or XTZ is 15.5 billion dollars with a market cap rank as 19.

The market price of Tezos or XTZ is 2.09 dollars (as on November 19, 2020).

Binance Coin (BNB)

The crypto-coin, Binance, was issued by Binance exchange with a trade symbol of BNB.

It runs on the Blockchain of Ethereum with standard ERC 20 and a maximum limit strictly to 200 million BNB tokens.

It is one of the highly popular cryptocurrencies with immense potential to perform better and emerge as a leading one.

The market capitalization of Binance Coin or BNB 40 billion dollars with a market cap rank as 9^th.

What are the advantages of Cryptocurrency?

With cryptocurrency emerging as a digital alternative to the traditional methods of trading and exchange, various alternative points of view have been generated.

Let explore the advantages of cryptocurrency which make it stand as an alternative to the methods of financial trades in existence today.

• Cryptocurrencies involve direct transaction without any middleman or intermediary making it faster and easier. Also, it eliminates any additional transaction fee while having very less fee.

• Every cryptocurrency transaction is designated as a unique exchange protecting the Identity and confidentiality of the users.

• A significant share of individuals has access to the internet over banks or the financial currency exchange systems which wide open the opportunity for them to establish credit through cryptocurrency.

• International exchanges and transactions can be easily executed without involving any complication or additional fee.

• Unlike the traditional banking system, cryptocurrencies offer individual ownership to the individuals without any third-party access or authority over your holdings.

• Upon the authorization of cryptocurrency transfers, it cannot be reversed which serves as a barrier against any fraud or misconduct. For initiating the refund or reversal, the buyer and seller have to make a specific agreement.

What are the disadvantages of Cryptocurrency?

Every coin has two sides and so does the positive aspects of cryptocurrency are followed by the negative aspects.

Only lauding the cryptocurrencies for their advantages will not put forth a complete aspect of it.

Get hold of the disadvantages of cryptocurrencies which might help you in ascertaining every aspect before you get on to make a decision.

• The complexity of the Blockchain technology stands as a rather big disadvantage of cryptocurrency. The complexity can be traced to the fact that cryptocurrency and Blockchain experts can be counted on fingers with the technology developing all along.

• Cryptocurrency underwent a crisis period in 2018 which makes it unpredictable and risky for investment without properly analyzing and ascertaining risk factors. This uncertainty makes individuals still unsure about cryptocurrency.

• In various countries across the world, cryptocurrency is exclusively available to the societal segment that deals and works in technologies. Despite people knowing and understanding about cryptocurrency, there are still unsure of buying and using it.

• Cryptocurrency is digital money which can be stored in a digital wallet. However, the cryptocurrency password is protected by the strict encrypted Blockchain integration which makes it impossible to recover the lost data if the password is forgotten. This might prove to be a huge burden to the users at times.

• Despite cryptocurrencies being encrypted strictly by Blockchain integrations, it might be subject to hacking being a digital technology.

• Cryptocurrency does not have a governing authority rather it is decentralized which let the cloud of risk in investing in cryptocurrency hover over it.

What is Cryptocurrency mining?

Cryptocurrency mining can be designated as the process where the transactions carried out between the users are verified and listed on the public ledger of Blockchain.

The process of cryptocurrency mining also contributes towards introducing new coins into the circulating supply.

Alongside, it serves as a key element that it allows cryptocurrency to function as a decentralized network without requiring a central or regulatory authority.

One of the most popular and well-established mineable cryptocurrency is the Bitcoin, the meaning of which depends on a consensus algorithm known as a proof-of-work system.

However, it should be noted that not all cryptocurrencies are mineable.

How does it work?

Cryptocurrency miners secure the network and confirm the Bitcoin transactions in return of rewards paid to them for their service every 10 minutes as new Bitcoins.

The various functions and aspects of Bitcoin mining can be attributed as follows:-

• Issuing new Bitcoins

• Verifying and confirming the transactions

• Ensuring the security

Unlike the traditional currencies which are issued by the central banks when they assume that they will contribute towards improving the economy, Bitcoin miners are rewarded for verifying the transactions every 10 minutes with new Bitcoins.

Moreover, the issuance rate of Bitcoins is determined in the code which does not allow the miners to cheat the system or create Bitcoins without doing anything.

Generating new Bitcoins will require their computing ability.

Cryptocurrency miners have the responsibility of including the transactions on their blocks which are sent on the Bitcoin network.

Only the transactions included in a block can be deemed secure and complete.

This is because the confirmed transactions are permanently recorded into the Bitcoins Blockchain.

Moreover, more number of conformations is considered better to initiate larger payments.

Bitcoin mining through the miners ensures in securing the Bitcoin network by making it difficult to attack or alter.

A higher number of miners define the security of the network.

Is Cryptocurrency mining legal?

The legality of cryptocurrency mining has its dependency on geographic locations and prevailing rules and laws.

Moreover, the concept of Bitcoin is known to threaten the grasp of traditional currencies and government control and authority over the financial markets and economy.

This reason stands as a base for making it completely illegal in certain places or countries.

However, owning and mining cryptocurrencies are legal or unregulated in more number of countries than not.

Few of the countries which have made cryptocurrency mining illegal can be named as Egypt, Algeria, Morocco, Nepal, Ecuador and Pakistan.

Despite, the use and mining of cryptocurrency are still legal across much of the world.

Cryptocurrency market

In 2019, the global cryptocurrency market capitalization was 754.0 million USD which is speculated to figure out to 1,758.0 million USD by 2027 at the CAGR of 11.2% during the speculated duration.

• Countries like Germany, China, U.K. and the USA have started to implement the adoption of cryptocurrencies as an exchange medium.

• Cryptocurrency is known by different names which vary from country to countries such as digital currency (Australia, Argentina and Thailand), token (Switzerland), virtual commodity (China, Canada and Taiwan), crypto-token (Germany), virtual asset (Mexico and Honduras) and more.

• Moreover, the COVID-19 pandemic has resulted in the expansion of the relationship between the equity market and Bitcoin.

• With the crashing of the ICO or Initial Coin Offering market in COVID-19, the Blockchain companies are making efforts to raise investment capital.

Cryptocurrency in India

After the landmark decision of Supreme Court on March 4, 2020, the ban on cryptocurrencies in India was lifted making it legal in the country.

• 2020 experienced a considerable gain the global market share of India of the crypto transactions.

• Furthermore, the visit to OKEx’s from India experienced the highest increase by reaching up 545.56%.

• Moreover, it claimed for the newly registered users from India a rise by 4100% during the same time.

• The global crypto exchange platforms have plans for Indian to launch P2P trading platform soon allowing the Indian users to buy cryptocurrencies like Ethereum, Bitcoin and more by using multiple payment channels.

• A global crypto exchange platform, Kraken has already announced it plans to expand into the Indian market in 2020.

• However, the crypto market will face challenges due to the lack of precisely defined regulatory policies and governing laws.

How do you get Cryptocurrency?

Cryptocurrency is a digital currency or money having no physical existence in form of a coin or bill rather it is present in an online form.

It allows the direct transfer of currency to anyone online. Where Ether and Bitcoin are the most popular and well-known cryptocurrencies, new cryptocurrencies are created now and then.

People often use cryptocurrencies for faster payments and eliminating transactional fees.

Some people might use it as an investment with an expectation of the value to go up.

One can buy cryptocurrency with a credit card or in certain cases can get it by cryptocurrency mining.

Can you make money from Cryptocurrency?

Yes, one can earn money from cryptocurrency. Moreover, investing in cryptocurrency is one of the easiest ways to get some decent returns.

The other ways through which one can earn or make money from cryptocurrency is staking, buying and holding, trading, referral, bonus coins or tokens, dividends, selling for cryptocurrency or develop your cryptocurrency.

What are the top 3 Cryptocurrency?

The top 3 Cryptocurrencies can be names as Bitcoin, Litecoin and Ethereum.

Bitcoin (BTC)

It is one of the commonly known cryptocurrencies alongside deemed the original one created in 2009 in form of open-source software.

Under the name Satoshi Nakamoto, the first digital currency was established by White Paper author.

Moreover, there is no governing authority making it a decentralized system.

The current market valuation of Bitcoins $17,995.23 (as on 19^th November 2020).

Litecoin (LTC)

Launched as an alternative to Bitcoin in 2011, Litecoin is an open-source network like other cryptocurrencies that allows Global payments while being completely decentralized.

It operates on different algorithms than Bitcoin, “SHA-256”, which is “scrypt”.

Litecoin or LTC has a comparatively smaller block generation time with increased maximum coin limit.

The market valuation of Litecoin is 4.6 billion dollars with the current price of $78

Ethereum (ETH)

Based on Blockchain technology, Ethereum is an open-source platform type of cryptocurrency which was created in 2015.

The market value of Ethereum is 40.6 billion dollars with the current price being 476.79 dollars.

The market cap rank for Ethereum cryptocurrency is second among all the cryptocurrencies.

How do I convert Cryptocurrency to cash?

The notion that Bitcoin might one day replace or dominate over fiat currencies has made people invest more in cryptocurrencies.

This idea eliminates the power of fiat currencies today and dictates the strength which Bitcoin or other cryptocurrencies might hold in the future.

Converting Bitcoin into cash by transferring it into your bank account owes to the idea of using the value of your Bitcoin to get actual things.

Here is how you can transfer Bitcoin to a bank account.

• You can sell the Bitcoins you hold on the cryptocurrency exchange. This serves as the easiest methods where you can withdraw the cash directly to your bank account.

• Bitcoin ATMs are another alternative to convert cryptocurrency into cash. At Bitcoin ATMs, you can buy or sell Bitcoins with fiat currency.

• Several websites are there through which you can sell Bitcoin in return of a prepaid debit card which can be used as a regular one. The prepaid debit cards, powered by Mastercard or Visa, work both online and offline anywhere in the world at most of the places.

• Peer-to-peer transactions can be another method to convert cryptocurrency into cash. It is a quick and anonymous method where you can use the platform to sell Bitcoin for cash. You can decide the payment method while selling Bitcoin which can be either cash deposit or bank transfer.

Is Cryptocurrency a good investment?

Investing in Is Cryptocurrency is often risky owing to the unpredictable nature of the market.

However, in certain cases, when individuals are well aware of the concepts of Cryptocurrency, they can opt-in for investing in Cryptocurrency.

It shall be a risky play but if the ball is in your court, you can expect great returns on your investments.

Moreover, plenty of other factors are there which shall be considered before you jump on a decision of investing in Cryptocurrency.

This can be stated by the fact that in the year 2017, there was an immense increase in the market cap of Cryptocurrency but 2018 proved a pull off for the top 10 Cryptocurrencies across the world.

What is the best time to buy?

Trading in cryptocurrencies is never a steady wave owing to the unpredictability and dynamism of the market.

Although cryptocurrencies are traded across the world round the clock, there seems to a good, if not perfect, time to buy cryptocurrencies.

The sizes are comparatively smaller around weekends as the prices of cryptocurrencies are pronounced to move at these times.

Moreover, when fewer people are trading, it takes a lesser bit of efforts to turn the tables.

This implies that prices can increase with relatively fewer purchases and selling during the weekends than on the working days

Moreover, according to recent data and studies, Sunday evening is deemed the best time to buy cryptocurrencies, especially Bitcoin.

This is supported by the fact that BTC experienced higher returns on evening of Sunday going all through early Monday morning.

How much should you invest in Cryptocurrency?

Investment in Bitcoins does not demand any particulars sum to start with. However, your capacity and investment shall depend on your risk tolerance, profit tolerance, the timing of investment and change of mind.

Despite there is no minimum amount to invest in Bitcoins, the exchange platforms have set a minimum amount to invest.

For example, Coinbase has set $2 as the minimum amount for its users to buy Bitcoin.

Moreover, it is not recommended to start with a very small amount as the exchange platforms charge fees which might kill your investment.

Therefore, it is recommended to start with a decent amount as per the trends and after considering the factors.

Can Cryptocurrency be hacked?

The fact that cryptocurrencies are prone to hacking and scams cannot be denied.

As cryptocurrency is an online currency with the system entirely existing online, it is likely to get hacked.

However, strict encryption and security measures are taken to minimize the risks or prevent it from happening.