Almost all of us might have heard about the rise of Cryptocurrency abbreviated as Crypto. And if you have no idea what is a cryptocurrency, then here is what it entails. Cryptocurrency, which you can also refer to it as a digital currency or even a virtual currency is a medium of exchange that uses blockchain as a transaction network.
That blockchain ensures that the digital currency is not prone to central failure or any susceptible exploitation by hackers. Crypto is all over the mainstream as the safest and secure money in our modern era.
If you’re a beginner and you don’t know where to start on trading cryptocurrencies, then you’re at the right place. Here I’ll take you through some beginners steps to consider if you want to enter the cryptocurrency’s world.
- Familiarize Yourself with Blockchain
You need to be aware of all forms of cryptocurrencies as well as have a clear and concise understanding of the blockchain’s basics. Let me explain in short, what is a blockchain? It’s a growing digital public ledger that stores transactions in forms of records known as blocks. And that’s why it is impossible to change or alter the records unless you have the access.
- Know The Growing Cryptocurrencies and Their Volatility
Now that you’re aware of what is a cryptocurrency and how it works on a blockchain technology, the next thing is to familiarize yourself with the individual digital currencies. Don’t waste your precious time trying to know all digital currencies since they are many. Concentrate on the few that have exploded on the market. To help you on that the top three cryptocurrency coins include Bitcoin, Ethereum, and Litecoin respectively. With that knowledge, then you should seek and research how these digital monies are used in the marketplace as well as learn about their potential volatility.
To explain more about volatility, let’s look at the Bitcoin prices from March 2017 until now. It’s only between June and September that the currency fluctuated down from $3000 to about $2000. Right now the Bitcoin value is going for $12750 (at the time of writing this article, 6th Dec 2017).
- Sign Up for an Exchange Account
If you think you’re equipped with enough knowledge about cryptocurrencies, and you want to get into the market, then you need to set up an exchange account. You can choose the Coinbase, which is the safest platform as an exchange base for the digital coins and not a Ponzi scheme. Make sure to put up a 2-factor authentication, and a hard-to-crack password.
- Account Funding
After you have set up the account, you need to fund it with money for buying cryptocurrency. For example, the Coinbase allows you to fund your account via bank account, credit card, or debit card. Funding for a bank account has 1.5% charges, while a credit/debit card has 3.99% charges.
- Start Trading
You need now to start buying and selling of the Crypto, and you should follow news, trends, and check prices often. These digital currencies have a 24-day exchange duration, so you can buy when the coins are low and sell when they are high in the same day.
Bitcoin and Ethereum are the most known and used cryptocurrencies, and of course, their value fluctuates in minutes (I even think in some seconds), and this has made cryptocurrencies to explode into the mainstream and become a way in which you can make millions of dollars in a short span of time.