The crypto world is evolving fast.
In fact, nearly everyone has heard about cryptocurrencies. In this video,
we’re going to talk about Crypto 101: Starter’s Guide To Investing In Cryptocurrency So first, what is a Cyptocurrency? It is a form of digital currency that
uses cryptography to secure transactions. Here are the Top 5 Cryptocurrencies in 2019,
as of July 2019. The leading cryptocurrency is Bitcoin. It is still
the alpha cryptocurrency presently and it is in no hurry to give up
its market dominance any time soon. Next up, Ethereum has developed an innovative decentralized applications platform. It is also the first blockchain system to apply smart contracts during transactions. Following is Ripple, a native asset
of Ripple Consensus Ledger. XRP is considered to be the most efficient choice
for the financial sphere and liquidity providers because it enables the fastest transaction verification. Next, Bitcoin Cash is the first hard fork of Bitcoin,
which took place in August 2017. Later, BCH was forked again and divided into
Bitcoin ABC and Bitcoin Satoshi Vision. And lastly, Litecoin is a cryptocurrency
built by Charlie Lee. Today, it occupies the fifth position
in the world of cryptocurrencies. LTC was formed on Bitcoin’s protocol but it differs
as it applies another hashing algorithm. Crypto wallets are divided into two types: Hot and cold. Hot wallets are connected to the Internet. They’re easy to use and suitable for beginners who are learning the ropes. These wallets are easy to set up and generally accept a wider range of tokens. The disadvantages of this type are mostly connected with possible regulation and hackers. Cold wallets are not connected to the Internet.
This makes them safer from hacking attempts. The disadvantage of using a cold wallet is that it doesn’t accept a wide range of cryptocurrencies. Here are the top 5 cryptocurrency wallets. First, Coinbase is considered to be
the best cryptocurrency wallet. Its platform is regarded as the most convenient way
to trade and store cryptocurrency. Next up, Trezor. Trading is not allowed
on the Trezor wallet like Coinbase. However, it is the best platform for
storing Bitcoin and it is a physical device that connects to your PC, phone and other gadgets. Third, Electrum. Electrum is a desktop
wallet which allows you to store your cryptocurrency on your computer. Next, Blockchain Info is similar to the leading crypto wallet, Coinbase. The main difference is that
you can’t sell Bitcoins directly. Coin storage and marketplace are separate. And lastly, Robinhood.
Robinhood has expanded and includes support of other investments,
including cryptocurrencies. It is a mobile-first application and
does not have a web version. How Do Cryptocurrency Exchanges work? Crypto exchanges enable
trading one cryptocurrency for another and digital tokens to fiat currency.
The market decides the price of every cryptocurrency based on its demand. Simply put, crypto-exchanges operate
just like stock exchange, but instead of stocks, you trade coins and tokens. There are two types of exchanges,
centralized and decentralized. Centralized exchanges can accept fiat-cryptocurrency
or crypto-fiat swappings while decentralized exchanges require
an Ethereum wallet as they don’t store money directly on the platform.
The advantage of a decentralized exchange is that they provide higher security and
don’t require any additional steps to start trading. Here are the top 5 Cryptocurrency Exchanges. Starting with Binance, it suits both
advanced users and beginners. Its UI has an option of switching between modes,
which makes it really user-friendly. Kucoin is an exchange which has gathered
a lot of attention in the last 6 months. It’s not surprising cause it has a very easy-to-use UI. Next, Changelly is thought to be the most user-friendly crypto exchange in the market. It’s very simple to swap supported currencies
between each other via this platform. In Coinbase, you can simply deposit your fiat money
and get the cryptos you need. It’s also very loved because it gives an opportunity of buying currencies using credits cards. Finally, CEX.io.
They make really simple UI for beginners and also their past track record is prepared very well.
Like Coinbase, you can deposit with fiat money and get Bitcoin, Ethereum, Stellar,
Ripple and Bitcoin Cash. Now, let’s find out the best cryptocurrencies to invest in. The obvious number 1 choice is Bitcoin.
This is because the coin has already confirmed that it is trustworthy by solidifying
its status as the crypto market leader. So, if you are a novice investor, start off
by buying some Bitcoins. Next up on our list is Litecoin.
The main reason for investing in this cryptocurrency is that the number of retailers who
accept LTC is growing day by day. Moreover, it has a more accelerated block formation
and transaction verification than Bitcoin. Third, Ethereum is highly sought after
by blockchain developers who’re looking for means to build and manage applications inside the Ethereum platform. Likewise, the cryptocurrency attracts
investors who are trying to make purchases of
other digital currencies using ether. Next, Zcash is a decentralized coin launched in 2016 and looks very promising. The advantage of the coin is
the feature of shielded transactions, which gathers a lot of attention from crypto enthusiasts. Dash is a lesser-known version of the original Bitcoin and was originally named Darkcoin. It was launched in 2014 and has a very
fast increasing number of investors. And finally, Ripple is a coin that has no mining feature.
Hence, it decreases computing power usage. The coin was announced in 2012
and since then, it provides cross-border payments for banks and other institutions. Definitely, these tips will help you navigate
through the ocean of cryptocurrencies and be more confident in making a profit
from your investments. Be sure to understand and
analyze the project’s business model, management team’s experience and cryptocurrency use case to minimize risk and (possibly) make a handsome profit.