Investing in the Crypto Currency market space can be a little daunting for the traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and adoption of some new- ong concepts. So if you want to dip your toes in this market, you want to have a very good idea of what to do and what to expect.
Buying and selling CC requires that you select an Exchange that deals with the products you want to buy and sell, be it Bitcoin, Litecoin, or any of the more than 1300 other tokens played. In previous editions we have briefly described products and services that can be used in a number of exchanges, so that we can give you an idea of the various offerings. Lots of exchange options and they all do things their own way. Find things that are important to you, for example:
– Deposit policies, procedures, and costs per procedure
– Withdrawal policies and costs
– What fiat currencies are they facing for deposits and withdrawals
– Products they face, such as crypto coins, gold, silver and more
– Costs for transactions
– where is it based on Exchange? (USA / UK / South Korea / Japan …)
Be prepared for the Exchange setup method to be detailed and lengthy, as most exchanges want to know about you. This is the same as setting up a new bank account, because Exchange is the broker of expensive things, and they want to make sure you are what you say you are, and you are a trustworthy person to be faced. It seems that “trust” has been gained over time, as exchanges often allow small amounts of investment to be initiated.
Your Exchange will continue to store your CC for you. Many “cold storage” offers simply means that your coins are kept “offline” until you indicate that you want to do so. There are some news stories about the Exchange being hacked, and a lot of coins being stolen. Think of the fact that your coins are in something like an Exchange bank account, but remember that your coins are digital, and all blockchain transactions are irreversible. Unlike your bank, these Exchanges have no deposit insurance, so be aware that hackers are always there trying their best to get your Crypto Coins and steal them. Exchanges generally offer Password-protected accounts, and many offer 2-factor authorization schemes – something to seriously consider in order to protect your account from hackers.
Because hackers like to fall prey to Switches and your account, we always recommend that you use a digital wallet for your coins. Transferring coins between your Exchange account and your wallet is easy. Be sure to choose a wallet that will handle all the coins you want to buy and sell. Your wallet is also the device you use to “spend” your coins on merchants who receive CC payment. The two different wallets are “hot” and “cold”. Warm wallets are easy to use but they leave your coins on the internet, but only on your computer, not on the Exchange server. Cold wallets use offline storage mediums, such as specialist hardware memory sticks and simple hard copy copies. Using a cold wallet makes transactions more complicated, but it is the safest.
Your wallet contains the “private” key that allows all transactions you want to start. You also have a “public” key shared on the network so that all users can identify your account when involved in a transaction with you. If hackers get your private key, they can move your coins wherever they want, and it will never be returned.
Despite all the challenges and wild injuries, we are confident that blockchain technology is a game changer, and will change how transactions proceed.