The world of crypto-currencies is getting bigger and bigger, especially since it exploded in 2017 with thousands of digital tokens being created to make improvements in every industry imaginable. Prices exploded again in 2020, amidst a global pandemic, no less. The prices of crypto-currencies like Bitcoin, Ethereum, Dogecoin, Cardano, Binance Coin and many others have risen sharply, most reaching new all-time highs.
Bitcoin itself, the first and largest crypto-currency, has already seen a significant rise (three times its 2017 high) reaching $61,000 just a few weeks ago. With that in mind, if you’re interested in buying crypto-currencies, either for investment or trading purposes, we can tell you everything you need to know about them before you start.
Buy crypto like Bitcoin, Ethereum, Dogecoin and other crypto-currencies quickly and easily.
Buy/Sell Bitcoin at the best rates on the market
Buy/Sell Binance Coin at the best rates on the market
Buy/Sell DogeCoin at the best rates on the market
Buy/Sell Ethereum at the best rates on the market
Buy/Sell Cardano at the best rates on the market
Before you rush out to buy your favorite token, there are a few things to consider. It’s nothing too complicated, just a reminder of some things you should do to properly prepare for your crypto-currency investment.
To buy crypto-currencies on a trading platform, you will first need to deposit money. To do this, you can choose from a variety of payment methods. Most platforms accept credit and debit cards or bank transfers. Some even accept PayPal, Skrill or other payment methods.
Of course, there are also things to consider, such as transaction speed and fees. For example, bank transfers are the slowest – they can take up to a few days – but they are also the cheapest. Credit cards will get you your money very quickly, but they can be expensive to use. Ultimately, you’ll need to see what options are available and then decide what your priorities are – is speed more important than the cost of a transaction or is it the other way around?
The next thing to consider is creating your own wallet to hold your chips. This is because centralized trading platforms are custodial, which means they have their own wallets in which you must deposit the crypto-currencies you wish to trade on the platform (or the tokens you have purchased). Only after you have placed the funds in the platform’s integrated wallet can you withdraw them into your own wallet, where only you hold the private keys.
For some people, leaving tokens in the exchange platform’s wallet is not a problem. However, others find it a much less secure option. First of all, as long as the exchange platform holds your private keys, it is no different than a bank since you are not really the sole owner of your money. Not to mention that there have been many hacks that have resulted in the theft of users’ money on some platforms. If you intend to keep your crypto-currency investment for a long period of time, it’s best to transfer those funds into your own wallet.
Of course, costs are a big factor in the crypto-currency industry. In fact, one of the reasons why the crypto-currency industry is becoming more popular than banks is the low cost of making transactions and trading. However, even within the crypto-currency industry, there are platforms and even networks that are considered expensive. Ethereum, for example, has an extremely expensive network, where transaction fees can reach $50.
Naturally, security is – and should be – your top priority when trading crypto-currencies. Hacking attacks are quite common, although their success rate can vary. There are also scammers, fake projects, etc. In other words, you should always use all the security measures offered by the exchange platforms and wallets such as two-factor authentication (2FA), creating strong and complex passwords, etc. Remember that in the crypto-currency industry, you are solely responsible for the security of your funds.
Finally, you should also check the level of complexity of the platform you decide to use. There are many different platforms out there that all have a unique look in terms of functionality. Some were designed for professionals and these platforms are filled with advanced and complex tools that a beginner is far more likely to find confusing and intimidating than useful. On the other hand, there are also platforms that are specifically designed to be simple and help you take your first steps into the world of crypto-currencies.