Here’s everything you need to know about Cryptocurrency, from exchanges to wallets.
How do you buy Bitcoin and where do you store the cryptocurrency you buy? These are two questions that can intimidate people because they sound complicated, but they can be as simple as downloading an app on your phone. Although programmers and developers provided much of the early support for cryptocurrency, it has now reached a point where almost everyone is considering it as an investment — and in this case, there are only a few basic things you need to know about how the technology works in order to invest safely and securely. Whether you want to invest in Bitcoin, Ether, Dogecoin, or another cryptocurrency, the basics will remain the same.
Here’s how to get started with cryptocurrency and where you can keep your tokens.
How do I buy cryptocurrency?
A cryptocurrency exchange is a platform that connects buyers and sellers to trade cryptocurrency. Most exchanges support a variety of currencies, ranging from Cardano, Ripple, and Tether, which are all very popular in the crypto community, to Bitcoin, the oldest, most well-known, and most valuable cryptocurrency.
At this time, there are a number of crypto exchanges operating in India, and we recommend that before using one, you check to see if it has been in the news for the right reasons and not for the wrong ones. Stick to well-known and reputable exchanges, make sure they have a presence in India, and that the founding team is comprised of people with a proven track record.
According to a report, exchanges lose an average of $2.7 million (over Rs. 20 crores) per day, so make sure you’re investing with a reputable one.
There are a variety of other ways to buy and sell cryptocurrency. You can trade crypto directly with other sellers, but an exchange provides security and aids in the discovery of a stable price, making it easier to execute trades, making it the best option for newcomers to crypto.
Making use of an exchange
The process is the same for all of the major exchanges. You must first create an account, after which Indian exchanges will request KYC verification. This is done to prevent fraud, and you will be required to submit identification documentation. The process is usually quick, and you can begin trading immediately after depositing funds in the exchange.
You can do so by connecting your bank account to your cryptocurrency account, or by using a debit/credit card or net banking. When your exchange has completed its process, you will be prompted to place your first order.
Enter the symbol for the cryptocurrency you want to buy (BTC for Bitcoin, ETH for Ethereum, and DOGE for Dogecoin) as well as the amount you want to spend.
What is the best way to keep my cryptocurrency safe?
As previously stated, purchasing cryptocurrency is only the first step in the process. Yes, you could leave the cryptocurrency on the exchange, and if you’re trading frequently, this might be the best option. However, any chart of cryptocurrency prices over time will show that the price of Bitcoin, or the value of Ether in INR, has held its value over time, despite high volatility in shorter periods.
This means you’ll need to keep your coins in a crypto wallet for a longer period of time if you want to keep them safe. There are three types of wallets — hot, cold, and paper — and you must choose how to store your coins based on how you intend to use them, as we explained.
After reading the other article to learn everything there is to know about wallets and how to choose between them, you’ll be ready to get started.