Cryptocurrency is accepted as a new norm since it has gained an immense popularity and understood its own value or use. It is absolutely global and not controlled by any other third party or government. Although people tend to get confused at first, once they have bought their first cryptocurrency, only then they are able to buy, trade or use it cautiously in the near future.
Mentioned below are 10 things to know if you are a crypto beginner:
Find A Cryptocurrency Trading Platform
Though there are many cryptocurrency trading platforms across the globe, not all platforms work in all countries due to regulatory reasons. Before buying a cryptocurrency, you should have a detailed information about the platform in order to save yourself from falling into a trap.
Study Exchange’s User Interface
A better knowledge of exchange’s user interface enables you to use the system quickly and efficiently. Many exchanges educate and guide beginners to buy a cryptocurrency by providing resources on their official website.
Create An Account
The requested personal information along with scanned images and government-issued photo IDs like driver’s license or passport is required for the complete registration process. Take a selfie with the piece of paper contains a unique code provided by some exchanges.
Cryptocurrency You Want To Buy
There are many cryptocurrencies like Ethereum (ETH), Litecoin (LTC), Zcash (ZEC), Dash (DASH), Ripple (XRP), Monero (XMR), Bitcoin Cash (BCH), etc. Before buying any cryptocurrency, you should have a well-versed knowledge about its potential which could gain the highest value in the long-run.
Buying a cryptocurrency for the first time requires a traditional money known as fiat currency. A few platforms accept PayPal, while others accept credit/debit cards for the transaction process as per their convenience.
First Transaction Process
Connect an exchange account to the traditional money source. Click on the link provided by the exchange on their site to buy a cryptocurrency. Receiving the cryptocurrency in your account depends upon the exchange and the used payment option.
Different Types Of Fees
Exchanges charge different types of fees which vary widely. The miner fee is the lowest one which is only a few cents (USD) per transaction. You can be charged with a conversion fee which ranges from 0.5 -5 percent of your total purchase and a transactional fee which ranges from 1-0.5 percent based on your trading volume.
Exchanges have inbuilt online cryptocurrency wallets that can help you to keep the purchased cryptocurrency. Two online cryptocurrency wallets like hot wallets help store everyday spending of a cryptocurrency and cold wallets help secure the long-term storage of a cryptocurrency.
Use Of A Cryptocurrency
The cryptocurrencies are already being used to buy things include gadgets, gift cards and jewelry. It is used to pay for the satellite television and internet service provider Dish Network, online hotel booking, online air travel tickets and to purchase games, movies and apps in certain companies.
Governments of many countries have issued warnings against cryptocurrency, stating that the cryptocurrency encourages illegal activities like money laundering and black market activities.
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