How to Get Started with Crypto

Traditional investors may find it difficult to invest in Crypto Currency markets. This is because investing directly in Crypto Currency (CC), requires new tools and some new concepts. If you decide to venture into this market, it is important to know what you can expect and what you should do.

CCs can be bought and sold on an Exchange that offers the product you are interested in, whether it is Bitcoin, or any other tokens. To give an overview of the various offerings, we have previously described some of the services and products offered by a few exchanges. There are many Exchanges available, and each does things differently. For example, you should look for things that are important to you.

– The deposit policies, the methods and the costs for each method

– Costs and withdrawal policies

– What fiat currencies are they dealing in for withdrawals and deposits

– They deal in crypto coins, gold, and silver

Transaction costs

Where is the Exchange located? (USA/UK / South Korea …)Japan

Expect the Exchange setup process to be lengthy and detailed. Exchanges want to know everything about you. This is similar to opening a bank account. The Exchanges are brokers of valuables and want to make sure you are trustworthy. The Exchanges are not likely to allow large amounts of investment at first.

Your CC’s will be kept in storage by your Exchange. Many Exchanges offer cold storage, which means your coins will be kept “offline” until they are used. Many coins have been stolen and Exchanges are being hacked. There are many news stories. Your coins can be thought of as a bank account at an Exchange. However, you should remember that your coins will only ever be digital and that any blockchain transactions cannot be reversed. These Exchanges don’t have deposit insurance like banks. This means hackers can always try to steal your Crypto Coins. Most exchanges offer Password-protected accounts and many offer 2-factor authorization schemes. This is something you should seriously consider to protect your account against hackers.

We recommend using a digital wallet to store your coins, as hackers love to take advantage of Exchanges and your account. It’s easy to transfer coins from your Exchange account to your wallet. Make sure your wallet can handle all coins you are buying or selling. You also need a wallet to “spend” coins with merchants that accept CC payments. There are two types of wallets: “hot” or “cold”. Although hot wallets are easy to use, they can leave your coins exposed to internet. However, only your computer and not the Exchange server will be able to access them. Cold wallets store offline media such as hardcopy printouts and specialized memory sticks. Although transactions are more difficult with a cold wallet, they are safer.

The “private” key in your wallet authorizes transactions that you wish to initiate. A “public” key is also available on the network to allow all users to identify your account when they are involved in transactions with you. Hackers can use your private key to move your coins wherever they like, and it is irreversible.

We are positive that the underlying blockchain technology will change the way transactions are conducted in the future, despite all of the volatility and challenges.

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