Cryptocurrencies are digital currencies using cryptography to secure transactions and regulate the generation of new units. Cryptocurrencies are decentralized, which means they are not subject to the control of governments or financial institutions, explain Domenic Carosa and Dan Schatt, two executives of DeFi startup Earnity.
Most people making crypto purchases have accepted the risks of these new financial assets. While there are thousands of cryptocurrencies presently available, experts suggest that new buyers opt for more established cryptocurrencies like Bitcoin and Ethereum. These coins have historically increased in value over time and have been among the most stable.
To get started, join a Bitcoin exchange. While there is no official company behind Bitcoin, as it’s an open-source technology, different exchanges enable Bitcoin transactions. These platforms operate as middlemen. Set up a Bitcoin wallet. There are two kinds of wallets: hot wallets and cold wallets. Hot wallets are operated by either cryptocurrency providers or exchanges. Cold wallets, meanwhile, are the safer option as this storage method for coins is actual hardware, a portable device resembling flash drives. If buyer purchased a small amount of crypto, a hot wallet would be better. On the other hand, a cold wallet would be the ideal option for those trading a substantial amount of crypto.
Link the wallet to a bank account to purchase and sell coins. A buyer’s bank account may also be connected to the crypto exchange account. Then, place the Bitcoin order. It’s important for buyers—old and new—to research the cryptocurrency world. Earnity executives Domenic Carosa and Dan Schatt suggest that buyers read white papers and other reports to help determine which coins best suit their crypto needs.
Managing Bitcoin purchases can be a good challenge. Some buyers like to use assets to make online transactions, while others like to hold onto their coins, hoping that their purchase will increase over time.