How to Get Started in Cryptocurrency & Bitcoin
Cryptocurrencies can be pretty scary for people who are not aware of what they are. Yet, once one gets to know about these digital tokens and assets, they find that these complex codes are the easiest method of holding and transferring value across the globe.
Before we begin, let’s understand some basics of cryptocurrencies and their advantages:
Security: Complex algorithms that are near impossible to break make it the most secure technology.
Distributed: With the digital ledgers distributed all over the world, the record is always safe and even if a few computers fail, the network never stops.
Immutable: Once data is written in the blockchain, it is there forever and cannot be altered in anyway.
Peer to Peer: People can send cryptos directly from their wallet to another’s, without the need of a middleman or a bank.
How Do I Get Crypto?
There are a few ways to get your hands on cryptocurrencies. But before you can move on to acquiring it, you first must get a digital wallet. There are many wallets available online, each with its own unique advantage. Nearly all are free and you can get any you like, as long as it supports your preferred cryptocurrency.
Once you have your wallet ready, you can get your hands on your cryptocurrency through the following ways:
Directly: If you know someone who has cryptocurrencies, you can request to buy it from him or her.
Exchange: You can sign up on a crypto exchange which has an option to accept fiat and convert it to cryptocurrencies.
P2P Exchange: Many platforms allow people to interact and buy or sell cryptocurrencies. The P2P exchange acts as an intermediary to make sure the transactions are conducted smoothly.
If you opt for an exchange you will automatically get a wallet on the platform, but remember, the wallet will be not truly decentralized in nature and will be under the custody of the exchange.
Now I have Crypto, What Do I Do?
Cryptocurrencies are finding a lot of real life applications. Bitcoin (ad other cryptocurrencies) is accepted by many businesses as a mode of payment. You can use the cryptos to buy anything from groceries to even pay your bills.
Alternatively, you can go for trading, buying when there is a dip in the crypto market and selling high to make profits. Crypto trading is a major business and there are professional exchanges with advanced trading options such as Futures and Margins.