Get started with Crypto

Investing in the Crypto Currency market area can be a little daunting for traditional investors, as a direct investment in Crypto Currency (CC) requires the use of new tools and the introduction of some new concepts. So if you decide to dip your toes in this market, you want to have a very good idea of ​​what to do and what to expect.

To buy and sell CCs, you need to choose a stock exchange that offers the products you want to buy and sell, be it Bitcoin, Litecoin, or any of the over 1,300 other tokens in the game. In previous editions, we briefly described the products and services available on some exchanges to give you an impression of the various offers. There are many exchanges to choose from and all trade in their own way. Look for the things that are important to you, for example:

– Deposit guidelines, methods and costs of each method

– Cancellation policy and costs

– In which fiat currencies are deposits and withdrawals made?

– Products with which they trade, such as crypto coins, gold, silver, etc

– transaction costs

– Where is this exchange located? (USA / UK / South Korea / Japan …)

Be prepared for the Exchange setup to be detailed and lengthy, as exchanges generally want to know a lot about you. It's like setting up a new bank account because the exchanges are brokers of valuables and want to make sure that you are who you say you are and that you are a trustworthy person to deal with. It seems that "trust" is earned over time, as the stock exchanges usually only allow small amounts of investment to begin with.

Your Exchange stores your CCs for you. Many offer "cold storage", which simply means that your coins are kept "offline" until you indicate that you want to do something with them. There is a whole range of news in which exchanges are hacked and lots of coins are stolen. Remember that your coins are in an account with the exchange, but keep in mind that your coins are digital only and that all blockchain transactions are irreversible. Unlike your bank, these exchanges do not have a deposit guarantee. So be aware that hackers are always out there, trying everything to get your Crypto coins and steal them. Typically, exchanges offer password-protected accounts, and many offer 2-factor authorization schemes – something you should seriously consider to protect your account from hackers.

Given that hackers like to search exchanges and your account, we recommend that you always use a digital wallet for your coins. Moving coins between your Exchange account and your wallet is relatively easy. Be sure to choose a wallet that handles all of the coins that you want to buy and sell. Your wallet is also the device you use to "spend" your coins at merchants that accept CCs for payment. The two types of wallets are "hot" and "cold". Hot wallets are very easy to use, but leave your coins online, but only on your computer and not on the Exchange server. Cold wallets use offline storage media such as special hardware memory sticks and simple printouts. Using a cold wallet makes transactions difficult, but is the safest.

Your wallet contains the "private" key that authorizes all transactions that you want to initiate. They also have a "public" key that is shared across the network so that all users can identify your account when they are involved in a transaction with you. When hackers receive your private key, they can move your coins anywhere. This is irreversible.

Despite all the challenges and the great volatility, we are confident that the underlying blockchain technology will be a change and will revolutionize the way transactions are processed in the future.

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