Let’s assume that you made the decision to start your investment path in the cryptocurrency market.
The basic knowledge that you must have is:
- How to use his money and his bank account to buy a cryptocurrency and most importantly
- How to store these cryptocurrencies.
In today’s article we will analyse these very two steps.
We start with the first part of the cryptocurrency market. To be able to track the evolution of cryptocurrency prices and what exchanges are available you can use CoinMarketCap – which is pretty much the website 99 percent of the industry use.
How To Buy Crypto
Cryptocurrencies are not purchased by directly exchanging fiat money for a cryptocurrency.
The user will have to buy Bitcoin or Ethereum and then buy any other cryptocurrencies with them.
The first step is to register in an exchange that accepts bank transfers. Necessary documents that will be requested are a copy of passport/ID and a last quarter utility bill.
Well-known and functional platforms for registering and sending bank remittances currently are Kraken and Bitstamp.
Another well-known platform is Coinbase, which charges high commissions. Another solution is to purchase Bitcoin directly from individuals through the LocalBitcoins.com platform or the use of a Bitcoin ATM.
Exchanging your Crypto
After the user has now purchased Bitcoin or Ethereum in the exchanges we mentioned, he can exchange them for a range of cryptocurrencies that these particular exchanges allow or transfer the Bitcoin or Ethereum to other exchanges or wallets.
One of the most famous exchanges featuring one of the largest cryptocurrency gams is Binance. The transfer from exchange to exchange is made using the addresses (a cluster of words and numbers) issued by each platform in order to transfer this cryptocurrency.
Transfers from exchange to exchange can take from a few minutes to a few hours depending on the network load.
Many users choose to leave their cryptocurrencies stored in exchanges but this method is not classified as safe as on the one hand there have been thefts from several exchanges and on the other hand if the user does not have an internet connection or the exchange is in the process of upgrading even temporarily the direct access to cryptocurrencies is lost even temporarily.
In order to redeem your cryptocurrencies, you have to convert them into Euro or Dollar and then send the money to your bank account.
If you hold cryptocurrencies other than Bitcoin or Ethereum and you want to convert them to Fiat money, you will first have to convert them to Bitcoin or Ethereum and then to fiat money.
The reason is that the above-mentioned cryptocurrency exchanges allow only Bitcoin and Ethereum to be exchanged to fiat money.
Storing Your Crypto
We move on to the second part of our article, which we consider to be the most important.
Ideally, every user who chooses to invest in digital currencies the first purchase you should make is that of a digital wallet device.
These devices enable you to store private keys and the cryptocurrencies you have purchased on this device. Hardware wallets provide dual security compared to on-line digital wallets as millions of on-line digital wallets have been hacked as malware manages to steal users’ digital keys when trying to access their wallets online.
The two most famous solutions on the market at the moment are the devices of Trezor and Ledger Nano S. These are called hardware wallets
RELATED: Best Bitcoin Hardware Wallets
By using these devices, you can store your cryptocurrencies after purchasing them in exchanges and minimize the chances of hackers stealing your investment.
The cost of acquiring them is the minimum and prerequisite investment that the user must make before starting any cryptocurrency trading activity.
Completing this week’s article we stress that you should do your own personal research before deciding to take the step of entering the cryptocurrency market but if you decide to do so you must do so methodically and prioritizing security.
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