The last few years have witnessed a real financial revolution: cryptocurrencies are becoming more and more common and can now be used even in everyday life. We use them to play at online casino CA sites, buy things and even for investment. So, if you want to be a part of this revolution, where should you start? In this article, we tell you how you can start using cryptocurrencies.
What Crypto Is More Suitable for Beginners?
The first thing you need to know about cryptocurrencies is that they fall into two basic categories, volatile and stable.
- Volatile cryptos are currencies whose prices can change constantly and drastically. We can cite Bitcoin and Ethereum as an example: if you follow them, you can see their values go up and down within seconds, and sometimes these changes are very drastic, both up and down. The vast majority of cryptocurrencies in the market are considered volatile, and if you are just getting started, it is best to stay away from them. Otherwise, you can go bankrupt within seconds. Of course, there is also a possibility that you will become very rich in seconds, but we do not think that you want to take this risk, at least until you know what you are doing.
- Stable cryptos are just the opposite. Their value depends on a real-world asset, so radical price changes do not occur. For example, Tether is a crypto whose value is tied to USD: 1 Tether (USDT) is always worth 1 USD, and this does not change at all. You can also find cryptos whose value is tied to assets such as gold, oil, silver, but we recommend that you prefer cryptos that are tied to a currency such as USD – EUR in the beginning. These include Tether, TrueUSD, DAI, Diem, and many others. Stable coins do not make incredible profits, but they are the best option for learning how things work: you can enter the crypto markets without risk.
What Crypto Platform to Choose?
After choosing a cryptocurrency, it’s time to choose a platform. The platform here means exchange sites. You can think of these sites as a kind of marketplace. They bring together those who want to sell their crypto and those who want to buy them. Exchange sites sometimes have their own crypto too, but their main purpose is to create a platform that brings together buyers and sellers.
You can find many exchanges on the Internet that fit this description. Some of these fall under the category of DEX, or decentralized exchange, and are not suitable for beginners. It would be more accurate to prefer exchanges with a central server, and these are the most popular exchanges anyway. It’s not possible to give any specific advice here, but it’s best to choose one of the major, reputable and regulated exchanges. Binance, CoinBase, FTX, Kraken, BitFinex, and Huobi are currently the exchanges with the highest trading volumes, and we recommend choosing among them.
How to Create an Account?
After selecting the exchange site, you need to open an account. This is no different than opening a new account for any online service but includes a separate verification procedure as you will be making financial transactions. Create your account by providing personal information such as your name, address, phone number, date of birth and email. After that, you need to upload documents confirming your identity to the exchange site. These documents may include copies of an official photo ID or a utility bill. Some exchange sites may also ask you to post a selfie with your identity visible. Each exchange has a different rule, but ultimately, you must verify your identity: otherwise, you will not be able to trade. Note also that you must add a payment method (bank account, credit card, e-wallet, etc.) to your account.
How to Buy and Sell Crypto?
After creating and verifying your account, you can now start trading. If you want to buy crypto, choose from among the cryptos available for sale on the exchange: you can buy as many as you want at the currently displayed price. Payment will be drawn from the payment method you added when creating your account (for example, from your credit card). Your cryptos will be transferred to your account on the exchange site.
You can keep them here if you want or withdraw them into your own personal wallet. There are many digital crypto wallets on the internet that you can use absolutely free, and when you get one of them, you also get a blockchain address. You can think of this address as a kind of IBAN number: it is possible to withdraw cryptos from your exchange account to your wallet by sending them to your blockchain address. We recommend using mobile wallets as they are more practical, but the choice is yours. In any case, for increased security, do not forget that you can also use a “cold wallet” (an offline and physical wallet) to store your cryptocurrencies.
If you are a seller, you must link your wallet to the exchange site after you open an account. The site will automatically add the cryptos you own to its sales pool and when someone buys it, it will also send the payment to your wallet. However, keep in mind that the fee required for this transaction will also be deducted from the sales price.