Investing in the Crypto market space can be a little frightening for traditional investors, because it invests directly in Crypto (CC) requires the use of new tools and adopts several new concepts. So, if you decide to dip your toes on this market, you will want to have a very good idea about what to do and what to expect.
Buying and selling CC requires you to choose an exchange that deals with the products you want to buy and sell, be Bitcoin, Litecoin, or one of the other 300 tokens in play. In the previous edition, we have briefly explain the products and services available in several exchanges, to give you an overview of different offerings. There are many exchanges to choose from and they all do things in their own way. Find things that are important to you, for example:
– Deposit policies, methods, and cost of each method
– Withdrawal policies and fees
– The fiat currency they face for deposits and withdrawals
– The products they handle, such as Crypto coins, gold, silver etc.
– Costs for transactions
– Where is this exchange based? (US / UK / South Korea / Japan …)
Be prepared for the exchanging settings procedure for detail and length, because exchanges generally want to know a lot about you. This is similar to preparing a new bank account, because the exchange is a broker of valuables, and they want to make sure you are who you say, and that you are trustworthy people to face. It seems that “trust ‘is obtained from time to time, because the exchange usually only provides a small amount of investment to start.
Your exchange will keep your CC storage for you. Many offer “cold storage” which means your coin saved “offline” until you show that you want to do something with them. There are some news exchange exchanges that are hacked, and many coins are stolen. Think of your coins in something like a bank account in exchange, but remember that your coins are only digital, and that all Blockchain transactions cannot be recovered. Unlike your bank, this exchange does not have deposit insurance, so note that hackers are always out there try everything they can to get your Crypto coin and steal them. Exchange generally offers password-protected accounts, and many authorization scheme offers 2 factors – something to be seriously considered to protect your account from hackers.
Given that hackers like to prey on your exchange and account, we always suggest you use a digital wallet for your coin. It is relatively easy to move 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 also a device that you use to “spend” your coins with traders who receive CC for payment. Two types of “hot” and “cold” wallets. The heat wallet is very easy to use but they leave your coins exposed to the internet, but only on your computer, not an Exchange server. Cold wallets use offline storage media, such as special hardware memory sticks and simple hard copy molds. Using cold wallets makes transactions more complicated, but they are safest.
Your wallet contains a “private” key that authorizes all transactions that you want to initiate. You also have a “public” key that is shared on the network so that all users can identify your account when involved in transactions with you. When hackers get your personal key, they can move your coins wherever they want, and it cannot be changed.
