The crypto craze is running wild and has changed the face of finance forever. People don’t look at money the same way and are looking to start crypto trading. If you’re looking into this, then chances are you’re looking to do so too.
But before you get into it, it’s a good idea to familiarize yourself with the basics before you get down to trading. This article will show you what cryptocurrencies are, what benefits they offer, what platforms to go for and how to store them. In short, it will give you the basics.
The thing about crypto is that this isn’t a currency you can touch. It’s virtual and it only exists online. As such, you can use it to make transactions of all sorts with companies and users. To make such a transaction happen you’ll need 2 keys.
The first one is the public one and you’ll need it to connect to another user. Once a link is established, then you can use the private key to confirm the transaction. The same key stores a record of it in a virtual archive and lets you access your assets. That’s why it should remain private.
The best part about using crypto is that you remain anonymous in each transaction. No third party has access to your assets and you’re free to use them however you like. But the one thing that makes people flock to it is profit potential.
This comes as a result of the volatility level. In short, this level helps the value rise or fall over a period and this will increase or decrease the value of your assets. This is the risk factor that comes with trading assets. Certain investments are better than others, which is why you should consider them carefully.
So, you might buy them when the value is low and sell them when the value is high which is a common practice in trading. But there are other practices that might seem useful. Also, you’ll need a platform to start trading.
Choosing a Platform
There are all sorts of trading platforms out there. Some of them are regular while others might be automated trading platforms, but the majority of them cover crypto trading. They will have their pros and cons and you’ll need to consider them carefully before making a decision.
You can go for popular ones and find out what makes them popular. A good idea would be to see what customers say about them. Another important thing to look into is the history of a platform. Online threats are everywhere and hackers have been known for hacking trading platforms and making off with other people’s crypto assets. So if a platform has a history of being attacked, then you should steer clear of it. Instead, go for platforms that have a clean history. Once you find the right one, make an account and start trading.
But you’ll also need a place to store your assets in. This storage is known as a wallet and it is also something to look into.
The Storage Conundrum
There are various kinds of crypto wallets available. They come in all shapes and sizes and come with perks. Just like with the platforms, it’s a good idea to research potential ones before making a decision. Weigh in the pros and cons of each different wallet you consider and then go for one.
You’ll also see that there are different kinds of wallets available. They come into 2 categories hot and cold ones. The hot ones are connected to the net and offer a certain level of convenience. In other words you can use them to make transactions, such as buying or selling items to and from companies that accept crypto assets as payment methods. And you can also trade crypto without a problem. But they are online which means they’re prone to online threats.
This means that a hacker can relieve you of your assets if you aren’t careful. The alternative is going for a cold wallet. These are called cold ones because they don’t share a connection to the net. Online threats are no match for them which means your assets are safe. But these wallets can store a finite amount of assets so you might need more than one.
In conclusion, both kinds of wallets have their pros and cons. Not all hot ones offer weak security and not all cold ones are ideal ones. In the end, always go for the kind of wallet that suits you best.
Once you tick all these boxes, then it’s time to get into crypto trading. You can start small and eventually your portfolio will grow bigger. By experimenting with trading practices you’ll find what works for you.As time passes, your skills will increase and you’ll become a better crypto trader.