The cryptocurrency market become extremely popular in the last couple of years. It is not strange to hear that since many people were attracted to becoming a part of the crypto world. Buying and selling cryptocurrency is not so simple since it requires knowledge, a lot of patience, and time to analyze and understand the market. Additionally, a person needs to develop the necessary strategies in order to make money out of this.
When it comes to profit, an individual can truly make millions of dollars by trading digital currencies, however, you can not become a professional trader overnight. If you are new to the world of crypto, you are probably having various questions you want to find the answer to. Do not worry, even though investing in cryptocurrencies seems incredibly complicated, you can figure it out. We prepared an article that will help you on that path.
How to buy cryptocurrency?
Let’s find out with the steps that we prepared below!
First, choose a crypto trading service
The first step that you need to conduct if you want to start buying cryptocurrencies is finding a reliable trading service. In general, exchanges stand for a convenient option due to the fact that they are offering various features and many different cryptocurrencies for trading which enables investors to buy, hold or sell their digital currencies.
Additionally, exchanges are allowing their users to withdraw crypto to their online wallets for safekeeping. When it is time to create an exchange crypto account, we suggest you use two-factor authentication and a very long and special password that no one can find out.
In general, there are so many types of cryptocurrency exchanges available nowadays. Some of the platforms are allowing their users to remain anonymous and those are decentralized ones.
More precisely, platforms of this kind will not require any personal information from their clients.
After that, you need to connect your exchange to a payment option
Now, after you selected your trading platform and made the account, it is time to conduct some further steps. As we mentioned above, depending on the type of exchange platform, you may need to provide your personal identification information such as your Social security card, your driver’s license, etc. When it comes to connecting the exchange to payment options, many exchanges will provide an option to connect your bank account directly.
Additionally, you have an option of connecting a debit or credit card. Even though you have the option to use a credit card in order to buy cryptocurrencies, you should know that price volatility can inflate the overall cost of buying a coin when it is combined with a credit card’s interest. You are probably asking about the fees, however, you should know that fees are varying from deposits that are made via bank account, debit, or credit card. Lastly, exchanges are charging fees per transaction.
Now, you can place an order
We came up with the fun part when you can place your first order. Exchanges have evolved to mimic exactly the same feature level as their stock brokerage counterparts. They are offering different types o orders as well as ways to invest. However, one thing that most crypto exchanges are having in common is the fact that they are offering both market and limit orders. Some of them also offer stop-loss orders.
Think about safe storage
All cryptocurrency traders must know that bitcoin and other crypto wallets are a place where a person can store digital assets in a secure way. In general, when you keep your crypto outside of the exchange which refers to a personal wallet, you can ensure that you are having control over the private key to your finds. One more thing that you should keep in mind is that an exchange wallet even though it is offered to clients, is not recommended when it comes to keeping a large amount of crypto or long-term crypto holdings.
Hot Wallets vs. Cold Wallets
You have probably met with these two terms. So, now we are going to explain what hot and cold wallets represent. When it comes to hot wallets, stands for online wallets. They are generating the private keys to the person’s coins on internet-connected devices. As a user of this type of wallet, you are not a holder of the private key to the crypto since it is held in this wallet.
However, since the exchanges are keeping them, there is a risk that in the case the exchange is hacked, your funds can be compromised. If you decide on how wallet option, you must take high-security measures such as two-factor authentication, strong and unique passwords as well as safe Internet browsing.
On the other hand, you can decide for keeping your cryptocurrencies in a cold wallet. A cold wallet is not connected to the Internet which means that there is less risk of being compromised by hackers. These types of wallets are offline ones, known as hardware wallets and they are storing a user’s private key on something that is not linked to the internet.
How to sell cryptocurrency?
When it comes to selling your cryptocurrencies, you can do that at the same venue where you have already purchased them. This refers to cryptocurrency exchanges and P2P websites. In general, the process of selling crypto is much similar to the process of purchasing them.
You should know that crypto exchanges are charging a specific percentage of the crypto sale amount as fees. One more thing that you should keep in mind is that exchanges are having daily as well as monthly withdrawal limits. In other words, cash on a large scale may not be instantly available for the investor. However, the good news is that there are absolutely no limits on the amount of cryptocurrency you can buy or sell.
What are the most popular options for trading cryptocurrency?
There are various venues for buying and selling cryptocurrency, some of the most popular options are exchanges, brokerages, and payment services such as PayPal. If you are looking for the most reliable and safest option, we suggest you start your trading adventure on cryptex.net.