Investing in Crypto Currency market space can be a bit daunting for a traditional investor, as investing in Crypto Currency (CC) directly requires the use of new tools and the adoption of new concepts. So if you decide to dive into this market, you have a very good idea of what to do and what to expect.
CC buying and selling requires you to choose an Exchange that deals with the products you want to buy and sell, be it Bitcoin, Litecoin or more than the other 1300 tokens in the game. In previous editions we have briefly described the products and services available in some exchanges to give you an idea of the different offerings. There are so many types it’s hard to say. Find things that are important to you, such as:
– Deposit policies, methods and costs of each method
– Withdrawal policies and costs
– What fiat currency they use to make deposits and withdrawals
– The products they sell, such as cryptocurrencies, gold, silver, etc.
– Operating costs
– Where is this Exchange? (USA / UK / South Korea / Japan …)
Get ready for an accurate and lengthy Exchange setup procedure, as Exchange generally wants to know a lot about you. It’s like setting up a new bank account, because the Exchanges are stockbrokers, and they want to make sure you’re confident in what you say and a reliable person to deal with. “Confidence” seems to be gaining over time, as exchanges typically only accept small amounts of investment to begin with.
Your Exchange will store your CCs for you. Many offer “cold storage,” which means that your coins are kept “offline” until you indicate that you want to do something with them. There is news that the Exchange has been hacked and a lot of coins have been stolen. Remember that your coins are in an Exchange bank account, but remember that your coins are digital only and all blockchain transactions are non-refundable. Unlike your banks, these exchanges do not have deposit insurance, so keep in mind that hackers are always there trying to get and steal your Crypto Coins. Exchanges generally offer password-protected accounts, and many offer two-factor authorization schemes – something that should be taken seriously to protect your account from hackers.
Considering that Hacker likes to capture Exchanges and your account, we always recommend using a digital wallet for your coins. It’s fairly easy to move coins between your Exchange account and your wallet. Make sure you choose a wallet that handles all the coins you want to buy and sell. Your wallet is also a device that you use to “spend” your money with merchants that accept CC for payment. The two types of wallets are “hot” and “cold”. Hot wallets are easy to use, but they reveal your coins on the Internet, but only on your computer, not on the Exchange server. Cold wallets use offline storage media, such as specialized hardware memory sticks and simple paper printing. Using a cold wallet makes transactions difficult, but they are the safest.
Your wallet has a “private” key that allows you to start all the transactions you want to start. You also have a “shared” key shared on the web so that all users can identify your account when they participate in a transaction with you. When hackers get your private key, they can take your coins to wherever they want, and it’s irreversible.
Despite all the challenges and wild volatility, we are confident that the underlying blockchain technology is a game changer that will reverse the way transactions are conducted in the future.