Buying and Selling Cryptocurrency
First of all, (as always) you should take everything you learn about buying and selling cryptocurrency with a grain of salt. This is due to loads of inaccurate information floating around.
As a result, the following general information on buying and selling cryptocurrency is by no means an end-all-be-all guide to investing. In contrast, it’s an educational page with the intent of giving any person who stumbles in good information before going on their way to learn more with cryptocurrency-focused programs and software.
To learn more about how to get started in cryptocurrency, check out our Getting Started in Cryptocurrency page!
You’ll first need to find some sort of exchange if interested in investing in cryptocurrency. The most noteworthy decentralized global exchange is currently Coinbase.com.
While using these exchanges is fairly simple, you’ll need to verify your account’s validity before making too many purchases. To do this, you’ll need to:
- Provide unique information.
- Use a bank account (routing and account number) as opposed to a debit or credit card.
- Complete a waiting period.
Any coin you choose will be placed in your digital “wallet” for safekeeping after completing these steps. Due to safety and hacking concerns, it is advised that you keep your cryptocurrency in one of these wallets instead of leaving it in your account on the exchange.
Certainly you should be researching information on wallets during or even before making a purchase. If unfamiliar, a wallet is a safe spot to store your cryptocurrency that only you control.
Cryptocurrency wallets come in two different forms: software or hardware-based.
Hardware wallets act in the same way an encrypted USB thumb drive would. To access the files within, you’ll need to know the unique security options found on the individual USB stick. Hence, these wallets exist to help you avoid hackers and thieves.
In contrast, software wallets have become more popular because they are free easy to obtain. These wallets are fairly secure, but are susceptible to hackers.
Above all, when selecting a wallet, make sure it’s the right wallet for the type of cryptocurrency you own (Bitcoin Core for Bitcoin, Metamask for Ethereum, etc).
Above all, you need to know that there are fees associated with selling or transferring cryptocurrency. In fact, some would even consider these fees to be rather significant.
As a result of these fees, you should make sure you know and understand the fees set out by the exchange you choose. Certainly these fees should decrease as technology surrounding these currencies advances, but for now it’s good to be safe.
Most noteworthy to investors dealing with these transfers (after setting up your wallet) are these three variables:
The public key address:
The private key:
If your public key address was your debit card number, this would be the PIN.
The wallet password:
Some transfers require a strong wallet password instead of (or in addition to) the private key.
Knowing these three bits of critical information should help you navigate through your exchange platform transfer options fairly easy.
In conclusion, buying and selling cryptocurrency can all be fairly difficult.
Therefore, you should contact us if you want to learn more about buying and selling cryptocurrency!