With all the recent press coverage writing plenty about investing in Cryptocurrencies like Bitcoin, you may be wondering how you can actually get started with Crypto’s, trading, and investments.
Crypto’s are distributed ledgers that hold the transaction records for the Crypto in the form of a blockchain. To be able to store and send Crypto’s you need a Crypto wallet.
With this wallet you can store Crypto’s that you have bought or and transfer them to other wallets – be those wallets owned by friends, or websites or Crypto trading platforms.
Each transaction you make is then recorded. A small transaction fee removed and the record bundled together with other transactions for verification in inclusion in the blockchain. The verification is carried out by mining companies automatically.
That might sound complicated but actually buying and trading Crypto is as easy as online banking. Considering the number of people that now do their bank transactions online, there should be no excuse for someone getting started with digital currency investment if that is a route they want to go down
What You Will Need
First, to store your Cryptocurrency you are going to need a wallet. Wallets are available in different types for different purposes and with different levels of security.
For day-to-day transactions and low levels of trade, an online Crypto wallet will suit most people’s needs. There are plenty of apps that make all of these easy for you, so don’t be afraid to do a little research and find an app that suits your needs.
Those with the need for higher security should look into offline cold wallets. These can be as simple as a USB stick. When disconnected from the internet, there is no threat of losing your Crypto’s through online fraud.
Making Long Term Investments
For the longer-term or even higher security, paper wallets can be produced by some websites. These are in a form that you can print on paper and store as you would other important or valuable paperwork.
Most banks have a secure storage facility, like a safety deposit box which provides probably the safest method for long-term storage of larger amounts of Crypto’s.
To purchase Crypto’s you will need to visit a Cryptocurrency exchange or trading platform, as currently, they are not available at mainstream exchanges.
There are different exchanges available, not all exchanges offer all Crypto’s so do your homework and make sure the Crypto’s you are interested in are available with the exchange you are looking at.
Using Your Digital Currency
Once you have chosen a suitable Cryptocurrency exchange, you will need to sign up for an account and verify your identity. Once you have been through their verification process you will be able to put conventional funds into your account to fund purchasing Crypto’s.
Currently, there are limited options for spending your Crypto’s as you would with a standard currency. Some websites and companies do accept Crypto’s but a web search will help you see the ones that currently do. This side of Crypto’s is currently underutilised and somewhat volatile in its adoption.
However, for investment, Crypto’s are proving extremely popular. Make sure you research any Crypto purchase carefully, as a volatile investment; their value can quickly rise or fall.
Make sure you decide on an investment amount and stick to it – do not invest what you cannot afford to lose; because although the rewards can be great they’re not guaranteed!
Cryptocurrencies have been with us now for a good few years and show no sign of disappearing. Now is the perfect time to investigate whether they are the right investment opportunity for you.