• Business - Your Money
  • Updated: September 19, 2022

How To Get Started With Cryptocurrency

How To Get Started With Cryptocurrency

Cryptocurrency investment has been gaining global recognition since its inception in 2009.

Cryptocurrency refers to a digital form of money that exists virtually and utilizes cryptography to safeguard transactions in that nobody can make counterfeits.

Many people are replacing fiat money with cryptocurrency because of the latter’s efficiency and reliability.

For instance, you can send and receive it, and there won't be any paperwork left behind to show the transaction procedures, like in other forms of currency. 

On top of such advantages, it's not governed by a central authority, such as the government or banks. It's made and distributed through a peer-to-peer network.

There's also no need for a third party to verify any transaction, which makes it faster and safe, and ensures there's no chance for fraud.

Moreover, with crypto, you can transfer your funds regardless of what time of the day it is since the platform is open 24/7.

If it does intrigue you, here are six things to guide you on how to get started with cryptocurrency: 

      1. Gain An In-Depth Understanding Of Cryptocurrency 

If you're new to cryptocurrency, you may need guidance and assistance to properly navigate it. Indeed, you're not the first person to consider using it.

Many others have used it and written blog posts about their experience. Some of these articles give in-depth insights into crypto investing. They also offer training videos and tips on trading cryptos. 

Through the help of such resources, you'll have a clear idea of what cryptocurrency is all about. Eventually, you'll learn how you can make profits with cryptos.

      2. Choose A Cryptocurrency Exchange

Cryptocurrency exchanges are platforms for buying and selling cryptos. They usually charge reasonable prices for those looking to work with them.

They accept payment options such as credit cards, wire and bank transfers, and many others.

One popular crypto exchange is Binance. Others include:

  • Upbit 
  • Bitfinex
  • Kraken
  • Gemini   

     3. Create And Verify Your Account

After selecting the crypto exchange platform you'd like to use, create your own account so you can start your trading. Keep in mind that it's a mandatory requirement.

First, begin by creating an account using your email address. Then, ensure you generate a strong password; a weak one can be accessed easily by hackers or anyone who has ill intentions.

After verifying your email address, you can now access the exchange platform. 

     4. Deposit Cash To Invest

The next step is depositing enough money in your account before you can begin transacting or trading. How do you go about it?

You can transfer it from your bank account or pay using your debit card. However, be careful when paying using your debit card since it's costly and might be unsafe.

This is because several credit card companies charge purchases with cryptocurrencies as cash advancements, charging you higher interest rates than other types of transactions.

    5. Start Purchasing Cryptocurrency 

After you deposit your money, you can begin purchasing the cryptocurrencies you want. Most exchanges will enable you to buy a fraction of a coin, which is manageable if you're new to crypto.

However, you should note that an exchange will charge you some money for every transaction.
Some of the well-known cryptocurrencies to choose from include:

  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Zcash (ZEC)
  • Ethereum (ETH)
  • Cardano (ADA)
  • Tether (USDT)
  • Uniswap (UNI)

   6. Select A Storage Method 

Lastly, you need to store your purchased cryptos in the safest possible way. This step is quite crucial as cryptocurrency exchanges don't have any protection, like other financial institutions.

The most common method of storage is cryptocurrency wallets. Here are some of the sub-categories of such wallets:

  • Hot Wallets: These wallets are kept online to run on different Internet devices, such as phones, laptops, and tablets. They’re an excellent approach since you see your investments all the time. However, you may be at risk of hacking or theft, given that you're still online. 
  • Cold Wallets: They’re one of the safest ways of storing cryptos since they don’t require any connection to the Internet. A cold wallet typically involves using a universal serial bus (USB) drive or hard drives. The only disadvantage you're likely to face with this method is that if you forget your passcode, misplace the drive, or it stops working, you may lose your cryptocurrency investment forever. However, you can salvage situations using crypto custodians who can enable you to re-access your account. 

Getting started with cryptocurrency is simple if you know the basics. Your first port of call should be tutorials demonstrating how cryptocurrency works and what it takes to generate enormous profits.

Couple this with other requirements, and you'll have a pretty enjoyable time navigating the world of cryptocurrency.

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