Getting Started With Crypto

88
3267

Investing in Crypto Currency market space can be a little intimidating for the traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and the adoption of new ones. concepts. So if you decide to dip your toes in this market, you will want to have a very good idea of ​​what to do and what to expect.

Buying and selling CC requires you to choose an exchange that deals with the products you want to buy and sell, whether it's Bitcoin, Litecoin or any of the more than 1300 other tokens in play. In previous editions, we briefly described the products and services available during a few exchanges, to give you an idea of ​​the different offers. There are many exchanges to choose from and they do everything in their own way. Look for the things that matter to you, for example:

– Deposit policies, methods and costs of each method

– Withdrawal policies and fees

– In which fiat currencies they trade for deposits and withdrawals

– The products in which they process, such as cryptographic coins, gold, silver, etc.

– Transaction costs

– where is this exchange based? (USA / UK / South Korea / Japan …)

Be prepared for the Exchange setup process to be detailed and time consuming, as exchanges usually want to know a lot about you. This is like opening a new bank account, because the stock exchanges are brokers of valuables, and they want to be sure that you are who you say you are and that you are a trusted person to deal with. . It seems that "trust" is gained over time, as exchanges generally only allow small amounts of investment.

Your exchange will keep your CC in memory for you. Many offer "cold storage", which simply means that your parts are kept "offline" until you indicate that you want to do something with them. There is quite a bit of news on pirated exchanges and many stolen coins. Think about your coins in a stock exchange bank account, but remember that your coins are only digital and that all blockchain transactions are irreversible. Unlike your bank, these exchanges do not have deposit insurance, so be aware that hackers are still out there trying everything they can to get your crypto coins and steal them. Exchanges usually offer password protected accounts, and many offer 2-factor authorization schemes – something to seriously consider in order to protect your account from hackers.

Since hackers love to attack exchanges and your account, we always recommend that you use a digital wallet for your coins. It is relatively easy to move coins between your Exchange account and your wallet. Make sure you choose a portfolio that manages all of the coins you want to buy and sell. Your wallet is also the device you use to "spend" your coins with merchants who accept CC for payment. The two types of wallets are "hot" and "cold". Hot wallets are very easy to use, but they leave your coins exposed to the Internet, but only on your computer, not on the Exchange server. Cold wallets use offline storage media, such as specialized hardware memory keys and simple printouts on paper. Using a cold wallet makes transactions more complicated, but they are the safest.

Your wallet contains the "private" key which authorizes all the transactions you wish to initiate. You also have a "public" key that is shared over the network so that all users can identify your account when they are involved in a transaction with you. When hackers get your private key, they can move your coins wherever they want, and it's irreversible.

Despite all the challenges and wild volatility, we are confident that the underlying blockchain technology will be a game-changer and revolutionize the way transactions are conducted in the future.


Comments are closed.