Getting started with cryptocurrencies

Getting started with cryptocurrencies can look a bit complicated at first, but it doesn't have to be. It takes some time to grasp the concepts but after we get used to it, it is very interesting and we would start earning a lot of money if we do things the right way. We should also understand that Bitcoin is not the only cryptocurrency out there and it is not necessarily that you have to create your project only on Ethereum. There are so many projects out there and you can fit into one that suits your needs and interests. This article will give you some tips to get started by providing some starter guidelines or ways to get started.

Source

Doing enough research

The first step is to do your research and learn about cryptocurrencies. Every project or content writer might give you all the information you need but they would then say that you have to do your own research to do a safe investment. Understand what they are, how they work, and their benefits and risks. The best way to get all the information you need is from online sources. There are many resources available online, such as articles, blogs, and forums that can help you learn more.

Choose a crypto exchange or wallet

To buy and sell cryptocurrencies, you need to use a cryptocurrency exchange or a proper wallet. But before that, it is important to understand the main difference between an exchange and a wallet. There are many exchanges to choose from, and you should compare them based on their fees, security, and reputation. There are also some fake exchanges that we have to be careful about. There are also options available where you can directly move funds and trade funds from one wallet to another wallet. Some blockchains give you that facility.

Create an account

An account is a common term that one could use if it is an exchange but if it is a blockchain, creating a wallet is the right term to use. Let's assume you get started on an exchange to begin with. Once you've chosen an exchange, create an account and verify your identity. This usually involves providing personal information and a government-issued ID. This can differ from one country to another country.

Source

Add funds to your account or wallet

After your account is set up, you'll need to deposit funds into it. This can be done via bank transfer, credit card, debit card, or other payment methods that the exchange supports. It depends on what exchange you have selected and what facility is provided by the exchange.

Purchasing your first cryptocurrency

With funds in your account, you can now buy your first cryptocurrency. Most exchanges offer a range of cryptocurrencies to choose from, such as Bitcoin, Ethereum, or Litecoin. Buy the amount you want, and the cryptocurrency will be added to your account. There are also facilities available to do a Peer to Peer transaction where you can buy directly from people who are willing to sell their coins.

Store your cryptocurrency

This is the most important step and it is essential to understand the difference between a wallet and an exchange wallet. After we understand the difference, it's essential to store your cryptocurrency in a secure wallet. Some exchanges offer built-in wallets, but it's recommended to use a separate hardware wallet for added security. If we are planning to do some regular trading, then maybe having the funds on the exchange can be fine.

Source

Keep a track of your investment

It is very important to keep a track of what is happening in the crypto world. There is a high possibility that the cryptocurrency you invested might have lost value or would have pumped hard. Cryptocurrency values can be volatile, so it's important to keep an eye on your investment. You can track the price of your cryptocurrency on the exchange or through other online tools. When it is the right time, you can probably book some profits and find new projects to invest in.

I would like to close this article with some bottom line for the new traders and investors. We have to remember that cryptocurrency investing is a high-risk, high-reward endeavor. Predicting them can be very hard. It's essential to start with small amounts and to only invest what you can afford to lose. By doing your research and taking the necessary precautions, you can start your cryptocurrency journey with confidence. When you start small and lose them because of some mistake, it shouldn't be very hard.

Note to the readers: In an attempt to experiment with modern technologies like ML and AI, I wrote this post and have used AI to enhance the readability and quality of the post. I have been told not to do so and I hereby pledge that I will never use AI to either generate or enhance my content.

If you like what I'm doing on Hive, you can vote me as a witness with the links below.