In human nature, we do not feel comfortable when we are about to try something new, which we do not know much. This fear has become even more significant as our technology has developed as much as it has. So it is no wonder that many people are a bit timid when it comes to trading cryptocurrencies.
People don’t know much about buying them, buying them, and knowing which website is good, which one is a fraud. Many questions, and when you face that type of situation and the answers are scarce, and it is not odd that many people give up on the idea of ever investing in Cryptocurrencies.
But luckily, we are here to help you out. We will advise where to start, prepare yourself, and expect on this new journey through the crypto world.
If you decided to start this journey, you need to make sure that they have the essentials. A digital wallet is necessary, as that is the way you will store your cryptocurrencies. You need your identification documents for you to open an account at any online market. Please make sure that you have a secure internet connection because not having a secure one can cost you your privacy and, in the worst case, all of your money. Of course, the last thing you will need is a viable payment method to pay for your cryptocurrencies.
Getting a Digital Wallet
Digital wallets come in two “sizes.” There are software and hardware wallets. Software wallets are mobile applications that connect your newly created account there to your bank account. This option is easy to set up, easy to use, but the negative side is that you now have an intermediary between you and your bank. And while most of these wallets are safe, the third party wallet companies are not so much. We have seen that these third-party applications have been hacked in the past, costing many traders their money. Simultaneously, these issues have been worked on, but there are no guarantees that it won’t happen again.
The other option is the hardware option. These wallets store the user’s private key in the wallet ( similar to a flash drive ), making it impossible to hack via the internet.
Some of the top Apps to use when choosing a software type, digital wallet, would be Coinbase, Blockchain.com, Kucoin, Electrum, etc.
Top Hardware wallets are Ledger Nano S, Trezor, Keep key, etc.
Connecting a Bank account to your wallet:
To buy cryptocurrencies, you will need to connect your wallet to either your bank account, debit card, or a credit card.
However, not all options are created equal. Even though your transactions via bank account can take a couple of days to process, this is still considered the best choice for beginners. Alternatively, credit and debit cards can only be used to buy cryptocurrencies and only in small amounts. Users cannot sell cryptocurrencies, nor can they deposit money into their bank account with his debit card connected to his wallet.
Join an online Marketplace:
Once you have all the above steps set, you should head your way to a Crypto Exchange. Even though there are many different marketplaces available, one should always first check all the different nuances that the market has and choose that suits you the most. Other exchanges have different rates, security, processing fees, and even have a diverse assortment of cryptocurrencies.
Companies to keep a lookout for
One of the best Exchanges for beginners due to demand is Coinbase. It is one of the most popular digital currency exchanges. You can also get all you need to start in one place as Coinbase offers digital wallets, as previously mentioned. Another good option for beginners is Robinhood. This digital currency exchange allows users to trade without fees. It is an excellent option for people that want to trade on a budget. Robinhood is a mobile-first app, so you should skip this one if you are not comfortable managing your money via the phone or a tablet. Square cash is one of the options that use outstanding financial technology as it has been on the map for a long time and kept up with the times. Any of these options would suit the beginner perfectly.
Even though this technology is still new and challenging to understand, many people make good profits while trading crypto. We need to rise above that fear and start taking advantage of this technology because there is no telling what the future holds.