Cryptocurrency for beginners
When digital currencies appeared on the market, many people were skeptical towards this type of investment. A small number of them, who were brave enough to invest in bitcoin, now are rich people. In 2017, digital currencies reached their peak, and now many people are interested in investing their money in cryptocurrencies, but the process is more challenging than it was a couple of years ago. But, if you are a beginner and you want to explore crypto, then we have prepared a small guide for you. So, here is what you need to know about digital currencies.
To trade any type of cryptocurrency, you need a wallet to store them. In this case, bitcoins need to go in bitcoin’s wallet. Wallets behave like a crypto bank account. But, how can you get an e-wallet? The easiest way is to sign up for an exchange that allows you to buy, trade or sell digital currencies. In this case, you will have an opportunity to generate a wallet for every token that you traded. For instance, Coinbase will provide you wallet for bitcoin, Ethereum, litecoin, and bitcoin cash. You need to understand that crypto wallets don’t behave like physical one. They are just a secure window into the blockchain so that you can track your transactions. But, keep in mind what type of wallet you are choosing because it will protect your investments and money.
If you want to start trading cryptocurrencies, then you need to choose an appropriate exchange. But, considering there is a large number of them on the market, you will have a hard time deciding the right one. In the last couple of months, we have been the witnesses of many frauds and hacker attacks, so it’s still risky to invest in them, but this doesn’t stop people. There are a couple of steps which will help you choose the right exchange. First of all, select the exchange that is located in your country. Bitcoin is still the most common trading pair, and if you are to invest in other digital currencies, you will only be able to trade and buy it against bitcoin. Most exchanges aren’t regulated, so you are risking here. Compared to traditional stock exchanges, crypto exchanges are open 24/7, 365 days.
Popular exchanges across the globe
Coinbase – located in the U.S., Coinbase is one of the largest exchanges in the world. Investors can trade bitcoin, bitcoin cash, Ethereum, and litecoin and you can buy them directly with your credit card. But you need to have a $250 weekly limit.
Bittrex – another U.S. exchange and even more popular than others because it offers more than 1300 alternative cryptocurrencies. You cannot deposit directly, and you will need to buy bitcoin or Ethereum and transfer them into Bittrex before you can trade.
Binance – this exchange is located in Hong Kong, and it was only launched in 2017. However, their platform became very popular due to a large volume of trades.