There is a lot of talk about crypto trading being associated with certain risks. This is, inter alia, connection with numerous frauds and cybercrime, the potential victims of which are both new and experienced investors. However, this does not mean that you cannot protect yourself against a potential financial loss. You just need to know where to buy cryptocurrencies!
By taking appropriate steps, we will be sufficiently careful when buying cryptocurrencies. Let’s go over what to keep in mind in order to make the best possible investment of your money.
Where to buy cryptocurrencies? Best on the cryptocurrency exchange!
The best place to buy digital currencies is the cryptocurrency exchange. Choosing the right one should be preceded by an analysis of the available platforms of this type. Finding one with a solid reputation among the cryptocurrency community is crucial.
It is wise to only look at exchanges that accept users that meet the KYC and AML requirements. Each of these requirements helps to prevent money laundering and terrorist financing. If the stock market complies with these regulations, we’ve probably come to the right place.
To register, you will need to provide private information such as your name, e-mail address, telephone number and postal address. This data helps to meet KYC requirements to keep people safe online, but it also means losing some privacy to fulfill these requests.
It is also recommended to read the reviews of other people. We assume that the negatively carried out transaction will be reflected in the review of the disappointed user. The trick is to read sufficiently diverse opinions so that you can get an idea of the pros and cons of a potential exchange.
Cryptocurrency wallet – which one to choose?
After selecting the optimal exchange, you should choose a cryptocurrency wallet. Both online and offline wallets are available on the market. They interact with the blockchain network, and each will have its own private key (it should never be shared) and a public transaction address that can be shared. Private keys allow you to access your wallet to make purchases, send money transfers to others, or transfer it to exchanges. A public blockchain address allows you to receive transactions.
Depending on your needs, you can choose a cold or hot wallet.
Cold wallets work offline. They are considered the most secure and carry the lowest investment risk. They are especially valued among long-term investors who want to “hold down” the cryptocurrency and believe in its growing value.
They can be thought of as safes, vaults or safe deposit boxes. They store a lot of money or valuables in a safe way, but it can take time and effort to “get” them out.
Warm wallets are designed for both active cryptocurrency enthusiasts and casual traders. They connect to the internet and are meant to facilitate crypto trading.
While a mobile wallet is great for everyday trading or transactions, an offline wallet is better for storing large amounts of money. The only challenge with having multiple wallets is making sure each one is properly managed and secured. A dedicated password manager can help.
The priority for each user will be to establish a sufficiently strong password to log into the stock exchange wallet. In addition, it should be additionally secured with the help of two-factor authentication on cryptocurrency exchanges.
What does a wallet backup look like? For this, it is enough to create a recovery phrase consisting of a series of unique words. In most cases, it is also a requirement for a successful wallet setup, which will help you recover the generated funds when you lose your access.
Buying cryptocurrencies and the lack of investment funds
When investing in cryptocurrencies, you shouldn’t spend money you can’t afford to lose.
As the market is volatile, it is crucial to be cautious. Especially when we are just starting to buy the first cryptocurrencies. Once we are familiar with the industry and the investment process, we can allocate more funds.
Thank you for reading the article! For the first 10 people who arrived here and will make a transaction in the exchange office, entering the SUMMER code will reduce its value by 0.5%