The online world of cryptocurrency may be a mysterious place for newcomers to the game. Nevertheless, it does not need to remain as an unknown, dark corner any longer. With time, effort, and of course money, any beginner can begin their journey to trading virtual coins today. Here is a walkthrough to help you be safe, cautious, find where to look, how to store coins, and begin your cryptocurrency trading trek.
Before Getting Started
Although you might want to jump in headfirst, it is imperative to know these couple of hints and tips before starting.
The cryptocurrency stock market might be an appealing option for new arrivals. It allows transactions to occur in a common environment without dealing with cryptocurrency upfront. The market is commonly known as the Bitcoin Investment Trust, or GBTC for short. Keep an eye on it right here. If you do not already trade on the regular currency stock market or it is your first time looking at pricing charts, now is a good time to start studying up on cryptocurrency trading terminology.
Following suit of last year, 2018’s coin market is on a vigorous path as well. The extreme volatility is something to keep in mind when exploring risk and judging which trades you should buy or sell. Moreover, taking the time to make an educated decision is certainly worthwhile rather than making sudden conclusions solely based on the collective emotion of yourself and most traders.
Choosing a Provider
There are plenty of exchanges to choose from, yet there are only so many dependable platforms to use. We recommend Coinbase for its wipe spread footprint as the most popular digital currency exchange to date. Over $50 billion has been traded among over 10 million customers on its platform. When choosing a provider, take into account their reputation and customer feedback. These are great indicators to know whether you should roll your dice with them.
Next, on any platform, you will need to connect a credit card, debit card, or bank account. Most prevalent exchanges have every major and minor currency from around the globe. Now, you can buy and sell a variety of coins such as Litecoin, Bitcoin, or Ethereum. Remember, cryptocurrency is now subject to tax laws. Find a refresher for rules and regulations regarding setting aside enough for the government.
Platform fees are another aspect to keep an eye on. If the costs to trade are outrageously high, stay away. In other words, finding the lowest fee charges bring you back the most bang for your buck. Coinbase happens to be in the top ten lowest fees, but it is not nearly the best solely regarding service fees. BitBay, BitMEX, and Bitstamp are all decent alternative exchanges with fees ranging from only 0.43%-0.25%. Anything above 0.40% is pushing it and the fees to run such a platform are unnecessary to give proper quality and transaction services.
Diving Right In
Now that you have chosen a provider, you can pat yourself on the back. Great! Now, it is time to really get this virtual coin wagon rolling. Do not expect to make large sums of money right off the bat when you are a beginner. But, you can expect to live by trial and error, no matter how much advice and training you take it right away. Experience and keeping up to date with the latest trends and price fluctuations will keep you on your toes and far more prepared.
It is strongly recommended to purchase a secure coin wallet. There are a generally two options to choose from – hard and soft. Hard refers to a tangible, physical, in-your-hands type of storage. Soft is for software such as desktop, mobile, and online wallets. If you are signed up with Coinbase, the platform already offers online wallet services. However, the safest way to store any type of cryptocurrency is through a hard wallet. The only catch is your own responsibility. Having full confidence in yourself to maintain a physical wallet with real value on it is crucial. If you lose it, there is no way to obtain your wealth from it. Likewise, if you forget where you stored your passwords and cannot remember them, the same deal happens. Comparatively, virtual wallets have the security potential of being hacked. Merely, the passwords are under fire. If a thief has your wallet password, they have your money.
Finally, exchanging Bitcoin, Litecoin, and other virtual coins are a safe possibility. You are armed with the technical knowledge of studying how to exchange cryptocurrencies, a great platform, and a secure way to store your capital.
Use your best judgment and thoughtful discernment when scouting out the next breakout coin, choosing multiple exchanges, or spreading your wealth via numerous security wallets. That is right – spread your wealth where you can. Putting all your eggs in one basket, of course, is asking for trouble. Join in, persist, and take part in this rare opportunity to help write history.