Peercoin (PPC) is a peer-to-peer cryptocurrency that has piqued the interest of many a trader over recent years. This guide shows you how to buy and trade Peercoin in 2020.
Where to buy Peercoin
Read on to find out more about Peercoin and how it works or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Peercoin?
Just like Bitcoin (BTC) and many other cryptocurrencies, Peercoin is a form of digital cash that relies on blockchain to facilitate transactions. While there are many similarities, Peercoin is an alternative to BitCoin that doesn’t rely on the huge amount of energy needed to power the BTC network. It achieves this by using a cost-efficient proof-of-stake concept.
Some traders believe Peercoin has had its heyday, and it’s easy to see why. Back in 2013, Peercoin was ranked as the third-largest cryptocurrency in the world. These days, however, it’s not even in the top 100, but don’t let that take the wind out of your sails – Peercoin is still worth trading and there’s still money to be made.
How does Peercoin work?
Cryptocurrencies like BitCoin face myriad problems, including slow, expensive transactions, scalability and massive energy consumption. To keep their networks safe and generate new coins, most blockchain-based cryptocurrencies rely on the proof-of-work concept, whereas Peercoin uses the proof-of-stake concept, which looks at the number of coins in a user’s wallet as well as checking how long they’ve been there.
How to buy Peercoin online – step-by-step guide
Step 1. Get a suitable wallet
There are loads of Peercoin compatible wallets waiting for you, but without doing some research you might not know which to choose, so we’ve compiled a list of the more popular options:
Coinomi Wallet: We’ve been recommending this multi-coin wallet for a while now. The only drawback to the Coinomi Wallet is the fact it’s only currently available for Android users.
Ledger Blue: We like a good hardware wallet as it’s the safest way to store your cryptocurrency and Ledger Blue is up there with some of the best. Casual traders and beginners might be put off by the hefty price tag, but if you’re serious about keeping your funds safe, Ledger Blue could be the one for you.
Cryptonator Wallet: With a clean interface and a host of useful functions, this wallet is a great pick for beginners and pros alike. It’s compatible with a huge range of currencies and is available as a desktop client or mobile app.
Step 2. Find a Peercoin exchange
As buying and selling cryptocurrencies becomes more popular the amount of exchanges offering lesser-known coins goes up, so you shouldn’t find it all that difficult to locate a suitable place to purchase your Peercoin. Here are a couple of our favourite exchanges where you’ll find Peercoin:
Changelly: If you’re looking for the easiest way to buy Peercoin at a great rate, then look no further than Changelly.
Coinswitch: It’s hard to fault the simplicity of Coinswitch too. Simply go to the website, find PPC in the dropdown and away you go. Coinswitch will let you buy some cryptocurrencies with fiat money, but you’ll need to use BitCoin or an equivalent cryptocurrency to buy Peercoin.
Step 3. Withdraw your Peercoin
Once you’ve bought your Peercoin, you’ll want to withdraw it at your earliest possible convenience and transfer it to your wallet. It’s much safer than leaving it on the exchange.
How to trade Peercoin – step-by-step guide
If trading is all you’re interested in, you might not want to bother with a wallet as you won’t be buying currency. Instead, you’ll be speculating on it and trying to predict whether the value will go up or down over a set amount of time.
Step 1. Find a broker
Finding a broker shouldn’t cause too much of a headache, even if you’re new to trading. The top brokers at the moment are plus500 and eToro and between those two you should be able to get started.
Step 2. Deposit money
When you’ve chosen a broker, you’ll want to deposit some cash, so you’ve got something to trade with. Plus500 and eToro have a minimum deposit amount of £100 or £200 respectively.
Step 3. Decide how you’d like to trade
Before you get stuck in, you’ll need to decide how you want to trade. There are two popular options: Spread Betting and CFDs (contracts for difference). Both methods require you to predict whether the value of your chosen cryptocurrency will rise or fall, so they’re not all that different. However, if you’re new to the game or need a refresher, it’s worth doing some research on Spreads and CFDs.
Step 4. Start trading
Brokers usually offer a demo account so traders can get to grips with the platform and build an understanding of how everything works, without risking any money. When you’re happy to open a live account you can start trading for real. But remember, cryptocurrencies can fluctuate wildly and it’s easy to win or lose money very quickly.
Whichever method you choose, you’ll need to take a position on whether you think your chosen cryptocurrency will increase or decrease in value. If you think it will increase you take a long (buy) position and if you think it will decrease you take a short (sell) position.
As a trader you can take advantage of a leveraged trading, which enables you to significantly inflate the size of your trade. With leveraged trading, the broker essentially loans you money, so you need only put up a percentage of the total value of the trade. If this sounds risky to you, you’re right. The rewards can be huge, but the losses can be devastating if you’re not careful, especially if you don’t use a stop-loss order to limit your potential losses.