There’s no denying how popular Cryptocurrencies have become, especially among those who are looking to make money fast. There is a lot more to it than just making a lot of money, though. Bitcoin and Etherium are killing it both in the globalized marketplace and the financial sector and these cryptocurrencies are doing it by providing a more transparent way of keeping money.
Whether you’re all for this or you’re just looking for an alternative, we've got you covered. If you’re a cryptocurrency newbie then even better because we’re telling you everything you need to know about buying digital currencies.
The best way to understand cryptocurrencies is by knowing how they actually work. As a virtual currency, cryptocurrency only exists within the digital realm, meaning they can’t be held or touched because they’re not physical money. You can’t put them in your pockets like you normally would. There’s what we call “cryptography” that takes care of its financial aspect.
In simple terms, cryptography is the process of coding pieces of data, securely transmitting and storing them so that no one can modify them unless they meet a certain set of conditions. Cryptocurrency, in the meantime, is a unit of data stored in a database called a “blockchain” which in turn, is being managed via cryptography.
Entries in the database are limited, and this creates value for the digital currency. What’s good about blockchain is that it cannot be modified or changed and is supposed to be permanent. For example, if bitcoins were to be used to purchase a car and a number of appliances, each transaction would be recorded in the blockchain. The security and transparency blockchain provides helps the cryptocurrency increase in value.
Choosing a Cryptocurrency
Before you start entertaining the idea of buying cryptocurrencies, you have to understand that there are currently 1300 cryptocurrency types. The first step is deciding which one is right for you. Below are the top cryptocurrencies most people prefer:
Choosing the type of cryptocurrency to invest on is no easy task. It requires careful research about digital currencies which you can do through their respective web pages.
Generally speaking, people support certain types of cryptocurrencies because it suits them. Take the Auroracoin for example which is widely used in Iceland because it serves as an alternative to Iceland’s national currency which is the “fiat.”
There are more important reasons to consider investing on cryptocurrency that goes beyond its popularity. By investing in cryptocurrency, you may actually be supporting a larger cause - one that can possibly decentralize the internet, as in Ethereum’s case.
Locating an Exchange Marketplace
Online digital exchange makes it possible for you to buy cryptocurrency. You must take note however, that each of these digital exchanges only supports specific types of cryptocurrencies.
Buying and selling can be done using a number of methods like debit cards, bank accounts, PayPal and other centralized payment methods that are supported. These digital exchanges also allow you to trade cryptocurrency.
Wallets are highly-recommended for cryptocurrency storage. You should keep whatever amount it is you want to trade in a given exchange. The exchanges below only buy and sell using cryptocurrency, making it ideal for investors. Do take note that you have to buy your currency somewhere else before availing these services.
Make sure to follow the instructions for creating an account. Account verification via email is required for you to get started. You’ll be also asked to add your preferred payment method which can be in the form of a debit card, credit card, US bank account, or wire transfer. Personal and banking information verification may also be required so get your driver’s license or any official government ID ready. The level of security helps you avoid illegal purchases.
Creating a Wallet
Digital wallets help you buy and store digital currency. You need to set up an account to have your own digital wallet. You’ll also need to setup a payment method once the account is activated. The money you’ll use in exchanging for digital currency will all come from this.
Once you’re all done, you are now ready to buy cryptocurrency that you can use at stores where they are accepted. It is crucial to understand that cryptocurrency transactions are irreversible so make sure everything’s final before you decide to push through with any cryptocurrency transaction.
You can access your digital wallet though smart phone apps and PC depending on the market you are in.
You can also set up a reoccurring currency purchase using your digital wallet. This feature allows you to invest a specific amount of cryptocurrency on a weekly or monthly basis.
Receiving cryptocurrency via an exchange of goods or through services requires that you both have a cryptocurrency wallet (sender and receiver).
By sending you a cryptocurrency, a sender lets go of his ownership of the said amount/cryptocurrency They’ll be sending you a private key which will grant you access to the currency mentioned provided it matches the public address where the currently is located Having a match lets you receive the cryptocurrency, increasing your balance in the process..
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