Cryptocurrency Review – What You Need to Know before Diving

Cryptocurrency Review - What You Need to Know before Diving

Cryptocurrency are digital assets designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Bitcoin was the first cryptocurrency, but there are now hundreds created worldwide. This guide will help you understand everything you need to know about crypto so you can invest safely and successfully in this emerging asset class!

Learn the basics

Cryptocurrency Review - What You Need to Know before Diving

Cryptocurrencies, like Bitcoin, are digital currencies that use encryption techniques to secure transactions. The first cryptocurrency was Bitcoin in 2009, followed by hundreds of others. Cryptocurrencies are mostly unregulated, so understand how they work before putting your money into one.

See a list of popular cryptocurrencies here. Do note that there is always risk when investing in new technologies. If you’re interested in getting started with cryptos, here’s what you need to know about them

Why choose cryptocurrency?

It can be difficult to pick a crypto-currency to use as your primary form of payment. It’s not exactly easy to figure out which currency is best, but once you do, it’s not hard to transact with that crypto-currency.

Read more: What is Ethereum and how does it work?

Before I started using cryptocurrency on a daily basis, I had heard of Bitcoin and I thought it was interesting, but since I wasn’t going anywhere near it personally, it seemed like kind of a waste of time—sort of like knowing there is money somewhere in your house but never having any intention of trying to find it.

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Then one day I tried trading BTC for ETH on an exchange while looking into making an investment (I know) and realized just how easy crypto makes everything. Transacting crypto through many wallets doesn’t feel much different than sending an email or posting something on Facebook.

There are still some hoops to jump through for sure (and buying crypto can be somewhat intimidating at first), but overall cryptocurrencies are a huge leap forward from current digital forms of payment in terms of both safety and convenience. So if you were ever interested in taking the plunge, now is definitely a good time.

Is it risky?

Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are not only growing in popularity but also becoming a serious investment. However, cryptocurrencies aren’t regulated by banks or governments so it’s important to do your research before you start mining for Bitcoin.

Buying cryptocurrency can be a risky endeavour. So, is it something that should be on your radar? Read on for our comprehensive guide on what you need to know about investing in cryptocurrency.

If you want an easy way of getting involved with virtual currencies without risking any of your own money then we have some handy advice right here… Is it safe?: Many experts warn against investing in crypto-currency because its value isn’t regulated by authorities like central banks.

But, similar to property values, there’s no telling when you’ll become rich from buying into bitcoin at one price and selling out at another higher price – let alone getting paid for mining bitcoin.

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Of course, cryptocurrencies all come with risks attached because they’re not backed up by official institutions like governments. Even though most new crypto coins don’t present many advantages over bitcoin itself, there’s still plenty of opportunities around it if you find a good platform to invest into.

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How do I buy it?

Cryptocurrencies can be bought via exchanges, which operate in a similar manner to stock markets. Like stocks, there are many different exchanges, each offering a slightly different set of coins.

The most popular cryptocurrency exchange is Coinbase (GDAX), and many others exist such as Kraken and LocalBitcoins. To get started on an exchange such as Coinbase or GDAX, you will need some type of payment method such as a bank account or credit card.

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Further, you’ll have to verify your identity with them by uploading proof of identification like a driver’s license or passport as well as proof of residence such as a utility bill. Once verified, these sites allow users to buy/sell cryptocurrency using either fiat money (i.e., USD) or cryptocurrency.

There may also be transaction fees associated with each trade. As always when dealing with finances, it’s important that you keep your information safe; never share your private key—the secret password used for all transactions—with anyone else.

The most popular trading pair for altcoins is BTC/USD since Bitcoin remains dominant among cryptocurrencies at just under 50% market share. However, other major trading pairs do exist such as ETH/USD and LTC/USD. For example, if you wanted to buy Ripple (XRP), you could trade BTC for XRP on either Kraken or GDAX, where users can trade using USD, EUR, CNY or even bitcoins if they want to do a little extra work.

Then when it comes time to sell your XRP tokens, you simply put in an order to sell them back for BTC and transfer out of your Coinbase wallet. It’s a bit more complicated than buying other securities like stocks, but that’s because there’s an added layer of complexity involved with cryptocurrencies.

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Lets’s face it: Crypto transactions aren’t exactly fast and convenient right now—many are still taking hours upon hours. But all things considered, digital coins are much easier to deal with than stock certificates

How do I keep my money safe?

With exchanges being vulnerable targets—they hold hundreds of millions of dollars worth of cryptocurrency after all—it’s important that you take certain steps to help secure your money against theft by hacking or otherwise malicious activity.

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