Cryptocurrency is a digital exchange instrument used to transact and store currencies, which is encrypted to protect them. The cryptocurrency introduced in the online marketplace can become an alternative to real money. The most famous is bitcoin.
Although trading in recent years has been growing in popularity, many of us are still highly suspicious. Bitcoin and other cryptocurrencies are often tied to the “dark side” of payment transactions, as well as the purchase of illegal goods online. But such a negative attitude is not substantiated by the facts.
What is blockchain technology?
For all those who think it’s all a big scam, there is one strong argument to distract them from this attitude, which is blockchain technology. It is a system of protection that means a data warehouse in smaller, digitally connected databases that store data related to digital transactions of every kind: starting with ownership sheets, through birth books, and through copyright-bearing contracts. Considering that all these databases, ie blocks, are interconnected, like links in a chain, fraud in such a system is almost impossible!
Usage
Another advantage is that there will be no need for banking transactions. We all know that sometimes banks delay the process of processing transactions, all with the aim of getting a commission for brokerage services. On the other hand, the opportunities offered by cryptocurrencies are almost limitless. Imagine being anywhere on the planet and being able to transfer all your money directly and safely wherever you want. This is quite possible with cryptocurrencies. Of course, such a possibility of sending money from one part of the world to another in just a few minutes attracts the attention of not only legal entities but also individuals.
Some other important features of cryptocurrency that favor their use are: trading at any time, on a non-stop basis (24 hours 7 days a week); high adaptability as a typical result of low liquidity; low risk compared to other financial market instruments.
However, many users find it difficult to decide on the best Bitcoin trading platform.
What should you look out for?
First of all, learn about platforms and opportunities to buy, sell and exchange cryptocurrencies in currencies other than dollars. It is mostly traded in the ratio between cryptocurrency and dollar, so be well informed before trading with another currency to prevent either additional costs or additional complications.
The other important thing is cryptocurrency wallets. There are several completely different types of wallets. Research well which is best for you. The general advice is to never keep a large amount of cryptocurrency in your online wallet. Why? Because anything online, sooner or later, can be hacked. Therefore, in addition to your online wallet (which you automatically get when you sign up for Coinbase, for example), provide yourself with another wallet that offers greater security. Hardware wallets are unrivaled in terms of security and are designed to store cryptocurrency for longer.
Where to buy cryptocurrencies?
This issue is closely related to the method of “getting” cryptocurrency. Suppose you do not personally mine them. Because you are investors, not developers.
The most common place where people trade cryptocurrencies is, let’s call it, the cryptocurrency exchange. The cryptocurrency exchange is actually a platform that allows you to buy and sell cryptocurrencies. There are several criteria to judge if this platform is reliable and of good quality. These are mainly liquidity, the commission they charge, the volume of trading, the limits of buying and withdrawing money (withdrawals), the security, the insurance it provides, and of course, whether it is acceptable and easy to understand for users. Also, follow sites like Bitcointocrypto.com and read various news and reviews to get as much guidance as possible.
1. Coinbase
Let’s start with the largest and most famous platform. Widespread throughout the world. It is considered the safest because it has several security measures in place. Another thing that speaks to the security of this platform is the amount of investment by large companies in it. It is very easy to use, so it will suit beginners as well as experienced ones.
2. Binance
Made in China, but now headquartered in Malta, due to much more favorable laws in that area. Although it was founded later than some of the others on this list, you will not notice it. It operates successfully and has many satisfied customers.
3. Kriptomat
Extremely well-tailored user interface. You can also buy bitcoin through your bank account. You can trade almost any known cryptocurrency on this site, and they also have many languages available, which further increases their popularity.
4. Cex.io
Their strength lies in the security they guarantee by working with many government agencies in the United States. They have also been on the market for a very long time, ever since 2013, when the whole world of cryptocurrency was in its infancy. With them, you know that your assets are safe.
5. Bitstamp
Just like the previous ones on the list, they have been around for a very long time, even longer – since 2011. They started to be tied to Europe, but now they cover most of the world. They have two completely different interfaces available. One for beginners and the other for experienced ones. These options certainly attract a large number of clients.
6. Kraken
They care very much about the safety of all their clients. They have several security protocols and regularly keep up with the latest technologies. So new progress can always be expected. They have been around for 6 years and during this time they have proven their quality and reliability.
Is there a good time to buy?
In fact, there is no general rule. The usual rule is not to buy when some cryptocurrency is at its peak, and thus not to buy when it falls. Generally speaking, the best time to buy is when the price is stable.
There is another important rule that you do not compare cryptocurrencies with “traditional” currencies. Observe it regardless of the currencies you knew until now, and maybe trade them.
Conclusion:
Apart from the usual risks that each investment entails, cryptocurrencies have a few extra risks because of their character. Therefore, it is important to make sure that you do the best you can and always keep the following in mind: Maintain and clean your computer regularly. Do not allow outdated antivirus versions. Not having a good antivirus makes you an easy target for hacking and stealing your cryptocurrencies.
Do not keep all cryptocurrencies in the same digital wallet. As mentioned before, there are different types of digital wallets. In some of them, such as online wallets, it’s simply better to keep the smaller amount of cryptocurrency you currently need. Keep the rest safe where no hacking is possible.
