Cryptocurrency is taking off in a big way, bigger than before, with new millionaires reaping the benefits of NEO, Bitcoin, Ripple, Stratis, Litecoin, Dash, and Ethereum, to name just a few. It’s rapidly becoming a modern-day gold mine. For buying digital currencies, I suggest you get a digital account. The account, which can be with a wallet or a cryptocurrency trading exchange, has a public and private key.
The keys are a unique pair of alphanumeric characters displayed as a QR code keeping user holdings secure in digital ecosystems. While the public key is like a bank account number (it can be shared to receive cryptocurrency deposits), the private key withdraws money and is to be used to authenticate transactions and withdraw money from the account.
How It Works
You should store cryptocurrency in wallets; choose from software, hardware as well as digital wallets.
Exchanges are essential to buy and sell digital currency. Cryptocurrency should be kept in the wallet and transferred to exchanges when the digital currency is traded, bought or sold.
Check The Details
I always stress that the country’s regulations should be checked before buying virtual currencies. A vast array of cryptocurrency can be purchased at exchanges for traditional currency. Most common methods to buy this type of virtual currency include cash, bank transfer or credit card.
After the Purchase
Use a cryptocurrency wallet to store virtual currencies once these are purchased. In the same way, traditional currencies are stored in bank accounts, crypto wallets store cryptocurrencies.
How to Choose the Best Cryptocurrency Exchange
While there are a lot of exchanges to choose from, I always recommend evaluating the level of security and payment methods accepted before Making a decision to purchase. Registering the information to create an account and verify the identity is the first step to making the purchase.
I suggest you keep aside 1-4 percent of your capital as most exchanges charge a transaction fee. Once the account is set up, cryptocurrencies can be purchased. Most exchanges are like stock trading platforms.
Here’s my list of what one must check before jumping into the fray:
- Do take transaction fees, payment options, cryptocurrencies offered and amount of time taken to activate accounts into consideration, before committing to an exchange.
- For newer cryptocurrencies like Neo, top choices include Poloniex, Bittrex, and For countries outside the US, I would suggest Bitthing/Coinone, BTC markets, Huobi and QuadrigaCX. Other good options include CEX.io, Coinmama, Bitstamp, and Exodus.
- Last, but not the least, do exercise caution and carry out secure transactions while buying cryptos. and always make sure safety comes first.
If you need further help or advice on how to get started in investing in cryptocurrency and digital assets, then why not get in touch to see how I can help you start your journey today!