Understanding Bitcoin and cryptocurrencies can be really confusing. The digital currency popped up overnight and is now the talk of the century. Here’s your chance to finally get ahead of this amazing trend, and who knows, maybe you’ll be the next cryptocurrency millionaire!
This step-by-step guide to cryptocurrency will tell you everything you need to know about how to buy bitcoin and other cryptocurrencies. There’s plenty to learn, so strap in!
The first thing you need to know is that there is a whole list of altcoins (over a thousand) and they all have weird names like Ethereum or Ripple. Each of these altcoins are very similar but have slight distinct differences to Bitcoin. However most of them are bought and sold in the same way.
The process is simple
You can buy cryptocurrency from others on an online marketplace or on a cryptocurrency trading platform. Your choice should be based on what you want to do with your cryptocurrency. If you want to buy and hold your Bitcoins or altcoins for the long run, you should buy on a digital marketplace. If you are looking at buying and selling cryptocurrency, then you should consider using a trading app.Trader apps are recommended because most of these platforms are easy to learn and use.
The next step is getting a wallet to hold your digital coins. Once you buy Ripple, Ethereum or any other cryptocurrency, you need to store them somewhere. This is where you need a cryptocurrency wallet, they work in a similar fashion to regular wallets. Instead of a physical space, they occupy a digital space. When you get one you’ll be given a code. Be careful not to lose this, if you do, you lose all your digital coins in this wallet.
There are two kinds of wallets: offline and online.
Online wallets exist within trader apps, hold your cryptocurrency for you and allow you to trade whenever you see fit.
Offline wallets are separate apps that hold your currency with zero connection to the internet. This makes it an ultra-secure place to hold large amounts of cryptocurrency that you own.
So what cryptocurrency should I buy?
Well there isn’t really a ‘best’ cryptocurrency. Many media sites might convince you that there is a top 10 cryptocurrencies list but in reality, it all depends on the user. For instance, Ripple has a current market price of under $1 making it ideal for starting traders. Ethereum uses a more advanced algorithmic system, making transactions quicker. So ultimately the best cryptocurrency to invest in is the one that suits your needs.
All you need to do now is buy digital coins when the cryptocurrency prices are low and sell them when they’re high. Easy as that. Good luck and good trading.
For more cryptocurrency guides and news, check out CRYPTO101.