How to get started with Crypto

Investing in the Crypto Currency market space can be a bit daunting for the traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and the adoption of some new concepts. So if you decide to immerse yourself in this market, you will want to have a very good idea of ​​what to do and what to expect.

Buying and selling CC requires that you choose a stock exchange that deals with the products you want to buy and sell, be it Bitcoin, Litecoin or any of the more than 1300 chips in play. In previous editions we have briefly described the products and services available in some exchanges, to give you an idea of ​​the different offers. There are many exchanges to choose from and they all do things their way. Find things that matter to you, for example:

– Deposit policies, methods and costs of each method

– Withdrawal policies and costs

– With which fiduciary currencies they negotiate deposits and withdrawals

– Products they deal with, such as cryptocurrencies, gold, silver, etc

– Transaction costs

– Where is this Exchange based? (USA / UK / South Korea / Japan …)

Be prepared for the Exchange setup procedure to be detailed and lengthy, as Exchanges generally want to know a lot about you. It’s like creating a new bank account, as stock exchanges are intermediaries of valuables and they want to make sure you’re who you say you are and that you’re a trusted person to deal with. It seems that “trust” is gained over time, as stock exchanges typically only allow small amounts of investment to get started.

Your Exchange will keep your CCs in storage. Many offer “cold storage,” which simply means that your coins stay “offline” until you indicate that you want to do something with them. There is a lot of news about hacked Exchanges and a lot of stolen coins. Think that your currencies are in something like a bank account on the Exchange, but remember that your currencies are only digital and that all blockchain transactions are irreversible. Unlike your bank, these changes do not have deposit insurance, so keep in mind that hackers are always doing their best to get your Crypto coins and steal them. Exchanges generally offer password-protected accounts, and many offer two-factor authorization schemes, something to seriously consider to protect your account from hackers.

Since hackers love to take advantage of Exchanges and your account, we always recommend that you use a digital wallet for your coins. It’s relatively easy to move coins between your Exchange account and your wallet. Make sure you choose a portfolio that handles all the currencies you want to buy and sell. Your wallet is also the device you use to “spend” your coins with merchants who accept CC for payment. Both types of wallets are “hot” and “cold”. Hot wallets are very easy to use, but they leave your coins exposed 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 hard copies. Using a cold wallet makes transactions more complicated, but they are the most secure.

Your wallet contains the “private” key that authorizes 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 they participate in a transaction with you. When hackers get your private key, they can move your coins 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 and will revolutionize the way transactions are conducted in the future.