Investing in the Crypto Currency Market can be a little daunting for a traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and adopting some new concepts. So if you decide to dive into this market, you need to have a good idea of what to do and what to expect.
Buying and selling CC requires you to select an exchange that deals with the products you want to buy and sell, be they bitcoin, liticon, or more than 1300 other tokens in the game. In previous editions, we have briefly described the products and services available in a few exchanges to suggest different offerings. There are many exchanges to choose from and they all do things their own way. Look for things that are important to you, for example:
– Deposit policies, methods and costs for each method
– Exit policies and costs
– Which currencies are deposited and withdrawn
– The products you manage, such as cryptocurrencies, gold, silver, etc.
– Costs for transactions
– Where is this exchange based? (US / UK / South Korea / Japan …)
Be prepared to be detailed and lengthy, as exchanges generally want to know more about you. Setting up a new bank account is the same as the changes are brokers, and you want to make sure that you are the one who says you are and that you are the person you trust. “Confidence” seems to have come later, since exchanges usually start with only a small amount of investment.
Your exchange lets you save your CCs for you. Many offer “cold storage”, which means your coins will be “offline” until you indicate that you want to do something with them. There are very few news stories where exchanges have been hacked and many coins have been stolen. Think about your coins in things like bank accounts, but remember that your coins are only digital and not all blockchain transactions will be returned. Unlike your bank, these transactions have no deposit guarantee, so be aware that hackers will always be there to try to find and steal your Crypto coins. Exchanges generally offer password-protected accounts, and many offer 2-step licensing schemes – something to take seriously to protect your account from hackers.
We always recommend that you use a digital wallet for your coins, as hackers like to change and exploit your account. It is relatively easy to transfer coins between your Exchange account and your wallet. Be sure to choose a wallet that handles all the coins you want to buy and sell. Your wallet is a tool that you can use to “spend” your coins with merchants who receive cash. The two types of wallets are “hot” and “cold”. Hot wallets are very easy to use but leave your coins exposed to the internet, but only on your computer, not the exchange server. Cold wallets use offline storage media, such as special hardware memory sticks and simple hard copy prints. Using a cold wallet makes transactions more complicated, but they are much safer.
Your wallet contains a “private” key that allows all the transactions you want to start. You also have a “public” key that is shared on the network so that all users can identify your account when shopping with you. When hackers find your private key, they transfer your coins wherever you want, and it is irreversible.
Despite all the challenges and dynamics, we are committed to ensuring that basic blockchain technology is a game changer and will make a difference in how transactions are conducted in the future.