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New to the world of cryptocurrencies? You have heard a lot about it, but you don’t know where to start? This helpful article is a good starting point since it’s full of tips to prepare you for trading crypto in 2020.
How To Buy Cryptocurrency
First, you need to be sure what the regulations are in your country regarding crypto trading. Then, look for the platform that may seem to be the good fit for you and check what the payment methods the platform offers are. These are usually credit cards, banks transfer but also the cash. Different platforms, different conditions. Before selecting a crypto broker, you must check the broker review to get core information about their service. Not every cryptocurrency is available to trade with on every trading platform. Find the one that deals with the currency you want to trade. Be sure to read terms and conditions and especially the FEES section in order not to be unpleasantly surprised due to the lack of info.
Keep Your Crypto Safe
There are several ways to store, secure and protect your cryptocurrencies.
Store your cryptos on a crypto exchange
When you buy your cryptocurrency in crypto exchange (a website that allows you to exchange fiat money for the cryptos), you have the option of leaving your cryptocurrency on that platform. This solution allows you to have quick access to your funds and make trades in minutes. However, this method is the least secure because you are doubly vulnerable. On the one hand, if your account gets hacked, on the other hand, if the entire platform gets hacked.
You can’t influence the second. On the other hand, you can increase the security of your account with three settings: email address, password and two-factor authentication.
The Hot Wallet
Store your cryptos on your computer (also possible on smartphone and tablet). This method consists of securing your private key on your computer. Please note, to store your cryptos on your PC; it is essential to make sure that it is not infected. In this case, the risk of your cryptocurrency disappearing is significant. In this system, you have control over your cryptocurrencies, but there are some drawbacks to this type of wallet. As we discussed earlier, by storing the private key on your PC, you make it vulnerable to attacks that your computer may be subjected to. Also, it requires more careful monitoring. From time to time, updates may be required.
The Cold Crypto Wallet
The cold wallet (or Hardware wallet) remains the most reliable method to secure and protect cryptocurrencies. This system works with a physical object that can take different forms depending on the brand. Your private key (the one that proves that you are the owner of the cryptocurrency) remains in the hardware wallet (the cold wallet) without ever being visible to the network. Thus, to have access to your cryptocurrencies, which remain online, you must have your cold wallet. The cold wallet is said to “sign” the transaction to prove that the owner agrees with it.
Send your cryptocurrencies from one platform to another
You have just obtained your first bitcoins or ethers; you now need to send them to exchange to use them as exchange currencies.
The first step is to go to the receiving platform, go to your balance (sometimes called “Balance” or “my assets”) and select the cryptocurrency you want to deposit. You will see the list of all available cryptocurrencies appear with on the right of your screen the buttons deposit (deposit), withdrawal and trade. Logically to send cryptocurrencies on this platform, you must click on “deposit”. A new page appears with a repository address which is materialized by a series of letters and numbers. You must copy this address. This is your deposit address (a kind of RIB).
The second step is to go to the sending platform. You proceed in the same way by going to your balance and this time you click on the “withdrawal” button (or the “send” button). You will be asked for two pieces of information: the amount of cryptocurrency you wish to withdraw and the address to which you want to send your money. Paste the address that you have previously got on the receiving platform. (Be careful not to make a mistake in the address in which case you risk losing your funds). Once validated, the transfer may take longer or shorter, depending on the platform.
The risks
Buying cryptocurrency is not a game. The cryptocurrency market is different from traditional markets. There are indeed many investment opportunities in this market; the technologies are young and very promising. However, in the investment world, opportunity rhymes with risk. The greater the profit potential, the greater the risk involved. We often hear the great stories about people who became millionaires thanks to bitcoin. That’s right, it does exist, many people have made a lot of money from cryptocurrency, but many others have lost it. There is one basic rule to always keep in mind: do not invest more than what you can afford to lose!
