Wondering How to start investing in cryptocurrency? If your answer is yes, then I am here to help you out.
From the last couple of years, people are going crazy over cryptocurrencies. Of course, the credit goes to 2017’s Bitcoin price brust, since then to now more and more people know about cryptocurrencies. Also, they are taking interested in investing their money in cryptocurrencies.
But what most of the users do not know is How to start investing in cryptocurrency. And if this is the same case with you, then let me just go ahead and talk about all the steps that you have to follow to start investing in Bitcoins or other crypto coins.
What Is a Cryptocurrency?
A cryptocurrency is basically a digital or virtual currency that is secured by cryptography. And this is what makes it nearly impossible to counterfeit or double spend.
There are many cryptocurrencies that are decentralized networks based on blockchain technology which is a distributed ledger enforced by a disparate network of computers. Also, the thing about cryptocurrencies is that they are not generally issued by any central authority.
How to start investing in cryptocurrency?
First of all, you will need a digital account if you wish to hold a cryptocurrency. A digital account could be an exchange or a wallet. And it should have two key features, which are a public key and a private key.
These keys are what helps in making sure that your cryptocurrency holdings are kept securely in a digital system. To simply this, you can say that the public key is very much similar to a typical bank account number. You can share this with others. So they can transfer the money to you.
In other words, you can say that the public key is used for receiving the money that gets deposited into your account. And the private key is linked to the public key for the same account. And this helps in authenticating the transaction.
You will also need a wallet. It will help you to store your cryptocurrencies. The most common options that we get to see are the paper wallet, hardware wallet, and digital wallet.
A paper wallet is those ones which you actually print your keys on a piece of paper and keep it safe. A hardware wallet is a removable drive, and this one is an expensive piece of technology. But they are the most secure way to store your cryptocurrencies.
Lastly, there is a digital wallet, which refers to any program that runs as a mobile or desktop app and allows you to store your cryptocurrencies.
Next, you need to know about the exchange. An exchange is basically the place where you will buy and sell bitcoins. Also, you can call it a stock exchange for commodities trading. A currency exchange is a digital platform that acts as an intermediary between buyers and sellers of the cryptocurrency. So if you want to buy cryptocurrencies, you will need to use an exchange. And there are quite a lot of exchanges available out there. To name a few, you can check these names:
Steps To Buy Cryptocurrencies
To get started with investing cryptocurrencies, you should go to any cryptocurrency exchange platform at first. Then you will need to create an account with them.
While creating an account, make sure you are entering accurate details only. As well as the exchange will require you to complete your KYC. In the KYC process, you will need to upload any of your personal documents like passport, Driving Licence, or any other national ID card.
Once you submit the details, your exchange will take a day or two to verify your account.
After your account gets verified, you will need to transfer the money into the wallet from the approved bank account. Also, while adding cash to your account, you might have to pay some extra charges.
Next, you will have to find the coin that you would like to invest in.
Finally, you can enter the amount of cryptocurrency that you would like to buy and complete the payment.
Once you are done purchasing the cryptocurrency, it will get added to your account. Now you can move the cryptocurrency to some other wallet or keep it in your exchange only.
So that was the answer to your how to start investing in cryptocurrency questions. However, before you invest in any cryptocurrency, it is recommended that you do proper research. This would help you to stay away from crypto scams. Also, if you have any more questions to ask. Then do feel free to comment below, and I will surely help you out.