Investing in cryptocurrencies can be a little difficult in the beginning. First of all, one wants to choose which crypto he is investing in and the benefits he could possibly get by investing in the crypto. It requires the use of some new tools and techniques to start with. You need to study the market and what to expect in return. If you are serious about investing in crypto, you need to make a study upfront. Proper understanding can help you to make the right decisions and eliminate many losses.
Buying and selling cryptocurrencies requires you to be with an exchange that deals with cryptocurrencies. Whichever coin that may be, whether it is bitcoin, ethereum, litecoin, or anything else in the market. Exchanges act in their own way and it is important to learn the working and policies of the exchange you want to do the transaction with. These exchanges want to make sure that you are the right person you are claiming to be and everything is authenticated. Each of these exchanges has its own way of working and it is important to choose the right one.
Here are a few things you would like to consider before choosing an exchange :
- Deposit Policies, Methods, and Costs
- Fiat currencies dealing with
- Transaction Costs of the exchange
- Withdrawal policies and costs
- Products the exchange deal with etc gold, silver, etc.
- Where is the exchange-based? USA, UK, Europe, Asia, Africa
You have to be prepared for a detailed setup procedure for the exchange. It is often a serious procedure like adding information to a new bank account. The exchanges want to know more about you and get the exact right information. They want to make sure that you are a trustworthy person and everything is made sure to establish trust between the parties. Some exchanges allow only small amounts to start with so that the risk is minimized.
Exchanges keep your coins in an offline mode so that they become active only when you want to do something with them. Unlike in a bank account, your coins are in a digital form and hackers are constantly looking to find a way to get hold of them. Although exchanges protect your account with a password and many offer two-factor authentications to keep your account safe and protected.
It is highly advised to keep your coins in a wallet and to exchange them in case of need. There are many wallets providing the facility to store your coins securely and these wallets will keep you safe from hackers. It is much safer to keep your coins in a wallet than in an exchange. You can also use the coins in your wallet to receive and pay merchants. It is advisable to keep all your coins in one wallet so that it is easy and safe to make transactions. There are two types of wallets cold and hot. It is safe to use cold wallets, but hot wallets are easy to use.
Your wallet contains a private key that is only accessible to you. You also have a public key that can be used while transacting with the public groups. If a hacker gets your private key, he can transfer your coins to wherever he wants. Even though with the limitations, it is quite sure that cryptocurrencies will revolutionize the economy and it is the future of the economy.