Beginner’s Guide to Cryptocurrency: How & Where to Start
The crypto maddening doesn’t seem to be slowing down as of now, and the hype behind cryptocurrency can be attributed simply to its decentralized nature. Cryptocurrency is the biggest breakthrough that happened in the landscape of business and financing. Virtual currency has changed the game of business processes and investing.
There are possibilities that you can become filthy rich by investing in cryptocurrency. But on the dark end, you can lose your assets or money when invested blindly without thorough research. Still, investing in crypto can be risky but also profitable.
Investing in cryptocurrency is a smart move if you want to pipeline a passive income source for a long and short period. If you’re in your infancy with the term “cryptocurrency” – don’t worry, we have got you covered. It is no rocket science, rather, it is pretty simple to learn the ropes of cryptocurrency and how it functions. Here are a few things that you should consider in the crypto-verse.
What is cryptocurrency?
Cryptocurrency is a wide-ranging topic. In simple words, you can understand it as a digital asset. Cryptocurrency is a digital currency that is decentralized in nature and is controlled and managed by a central authority. Cryptocurrency is equated to precious metals such as silver and gold. Crypto coins are curated through crypto mining, which is done through a large set of computers. The term decentralization in cryptocurrency means that cryptocurrencies are not managed, controlled, or issued by the central government.
Choose a crypto broker or a crypto exchange
To start trading in cryptocurrency, you first look for a reliable crypto exchanging platform or broker through which you can start buying or selling crypto. Let’s understand what crypto exchange is.
What is a crypto exchange?
Crypto exchange is a virtual congregation platform where buyers and sellers meet to trade in cryptocurrencies. Every crypto exchange has low transaction fees, and there are lots of crypto exchange interfaces through which you can start trading cryptocurrencies. Some of the best crypto exchanges in Canada are Coinbase, Coinberry, Newton, and Binance. The Crypto exchanges platform enables you to link your bank account through which you can transfer your funds directly from your bank to your crypto exchange platform.
What is a crypto broker?
On the other hand, cryptocurrency brokers work as an intermediary between the buyer and the seller. A cryptocurrency broker can be a firm or an individual working as a middlemen between two parties.
Register and verify your account
Now that you’ve decided where to start trading, you must register on a reliable crypto trading platform. During the signup process, you need to verify your identity. It is a crucial step to prevent fraud and meet federal requirements. You may not be able to trade in cryptocurrency without completing your KYC on the platform.
Add some cash to invest
Like stocks, you’ll also need money to buy cryptocurrencies. You can directly add funds from your bank to your crypto account, and expect to pay exchange charges. Some crypto exchange crypto platforms in Canada can allow you to use Interac e-transfers.
Start investing in your cryptocurrency
Once you have registered yourself, you’re all set to place your cryptocurrency order. There are more than 5000 cryptocurrencies in circulation. Hence, it’s essential to do thorough research before investing in any virtual currency. For newbie crypto traders, you can start investing in Bitcoin and Ethereum for a safe investment. Always start with small.
The best cryptocurrencies to invest in are-
- Bitcoin ( BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD coin (USDC)
- Binance coin ( BNB)
- Cardana ( ADA)
- Solana (SOL)
- Dogecoin (DOGE)
Set up a storage method
As there is no role of the central government in the crypto verse, there’s always a risk of hacking or theft. Crypto exchanges are not protected. It makes them vulnerable to getting stolen. You can also lose your investment if you have lost or forgotten the password to access your account. That’s why it’s essential to back your account with a secure storage place for your crypto investment.
Closing Thought
We can see that cryptocurrency is the next-gen currency. Investing in cryptocurrency is a smart move to 10x or 20x your investment. But again, thorough research is a must before you start investing in any currency. Crypto price fluctuates in seconds as it runs through a supply and demand in the community. Start investing in trusted crypto exchanges such as Coinbase, Coinberry, Binance, etc.
