Currently, crypto investment as a type of investment in digital currency is increasingly being favored by the public, especially millennials. Currency Crypto or digital currencies provide another option for everyone who wants to invest in a different way.
Like currencies in general, crypto can be used as a means of payment. However, it can only be done virtually. As the name suggests, this digital currency is not used as a physical payment instrument because it can only be used in the digital world.
Crypto investment is increasingly being idolized by investment lovers, as it promises huge returns. Asset cryptocurrencies such as Bitcoin, Ethereum, Degocoin and many more are becoming one of the crypto investment instruments that are in demand by investors.
The way to invest in crypto is to carry out asset buying and selling activities on exchanges. This exchange functions like a marketplace, a platform that brings together buyers and sellers to transfer assets in crypto investments. Crypto asset transactions occur between members or merchant members of the exchange.
The storage of bitcoins or crypto assets in crypto investments is carried out in wallets or similar digital wallets. This crypro wallet is provided directly on the exchange. Just like customers who keep their money in the bank or at home.
Because bitcoin transactions in crypto investments occur between exchange members, the buying and selling price of bitcoins between exchanges can be different. Investors can monitor it at any time on the internet to find out where the most competitive bitcoin price is.
Types of Crypto Investment
There are at least 5 types of crypto investments that are in great demand by investors not only at the global level but also in Indonesia, as follows:
Bitcoin
Bitcoin is the first type of cryptocurrency that is still very popular. This type of cryptocurrency first appeared and was introduced in 2009 by a party named Satoshi Nakamoto.
As of November 2019, there were more than 18 million bitcoins traded with a total market value of around US$146 billion, Investopedia wrote. To date, about 68% of cryptocurrencies are bitcoins.
Litecoin
Litecoin is a type of cryptocurrency that was also present at the beginning of digital currencies starting to attract the attention of many people. This type of cryptocurrency was precisely present in 2011 as a peer-to-peer (P2P) digital currency that generates new blocks (which make up the blockchain) at a faster rate.
So one of the advantages of Litecoin is that it allows users to make transactions faster without the need for a powerful computing system.
Dogecoin
Dogecoin appeared in December 2013. As the name implies, dogecoin is a cryptocurrency that made the Shiba Inu dog its iconic currency. Dogecoin has a much lower value than bitcoin. The use of this type of cryptocurrency is usually used for small transactions, donations, and tipping.
Bitcoin Cash
Bitcoin Cash was launched in August 2017 and is currently in the top five cryptocurrencies. This type was launched because of a group of Bitcoin users who disagreed with some applicable rules.
They then broke away and created their own digital currency called Bitcoin Cash. The group also made some improvisations that it says are better than the first cryptocurrency, bitcoin.
Feathercoin
Feathercoin is a type of cryptocurrency that is open source. This type of cryptocurrency was created by Peter Bushnell, an IT officer at Brasenose College, Ofxord University in April 2013. Feathercoin also has similarities to Litecoin and is under the MIT/X11 license.