Many of you will have heard of Bitcoin by now, and wondered what all the fuss is about. Bitcoin and other cryptocurrencies are being adopted at a very rapid pace and their price is growing exponentially. This might thus be a good time to put some of your savings into cryptocurrencies.
To buy cryptocurrencies you will need to first transfer fiat money into an exchange, and then purchase whichever crypto you want. My favorite exchange is Kraken.
Here are my current cryptocurrency favorites for long-term investment:
A decentralized digital “store” of value (it is worth something), that no government or central body has direct control on.
- digital store of wealth
Ethereum is a contract based cryptocurrency, where execution of contract code is guaranteed (Code is law).
- shopping vouchers,
- game and prize exchanges,
- lotto and lotteries,
- hotel reservations,
- service vouchers,
- loyalty card & points,
- short-term insurance contracts,
- enterprise contracts base settlement
Ripple is a transaction based cryptocurrency designed to unlock IOV (Internet of value). It enables congestion free global value movement & extends ultra-low transaction cost to payments of all sizes (micro & macro) – in near real-time.
- Trades Settlements,
- Banking Platforms (some have dubbed this Fintech 2.0),
- Next-gen Trading platforms,
- Ultra-low cost real-time money/IOU movement,
- Domestic and International transfer services,
- Complex trust and intermediary channels,
- Real-time global pay outs
Dash is digital cash that you can spend anywhere. Many e-commerce stores that previously accepted bitcoin payments have now switched to Dash as transactions go through faster and at a lower cost.
Dash uses a two-tier architecture to power its network. The first tier consists of miners who secure the network and write transactions to the blockchain. The second tier consists of masternodes which enable the advanced features of Dash.
As of June 2017, Dash is the seventh most valuable cryptocurrency by market capitalization.
- E-commerce payments
- Peer-to-peer cash transfers
Storing Your Cryptocurrency
Never keep your purchased cryptocurrency on the exchange. If the exchange is hacked, you might lose all your crypto. This has happened in the past and will most probably happen again in the future as no system is hack-proof.
The best way to store your precious cryptocurrency is to buy a hardware wallet, thus having your crypto stored offline away from any danger of getting hacked. My favorite hardware wallet is the Ledger Nano.
I realize that this is a short post and indeed I encourage you to read up as much as possible before making any investments. My hope is that you invest not only in the hope of making profit but also because you believe that cryptocurrencies will be a very important part of our future. If you have any questions about cryptocurrencies please go ahead and leave a comment below and I’ll do my best to answer your doubts.
If you want to listen to my interview with Mitchell Callahan (Bitcoin expert), you can find that Mastermind.fm podcast episode here.
Important note: I am not a financial advisor and cryptocurrencies are considered to be very high-risk investments. Only risk money you can afford to lose.