Buying and selling cryptocurrency has become a new and exciting venue for investors. But it’s imperative newcomers approach the venture with caution. What follows is a 2021 beginner’s guide to buying and selling cryptocurrency.
Supply And Demand
Like any investment, supply and demand are the factors for choosing cryptocurrency. Bitcoin prices driving past $10,000 helps. There’s a limit to bitcoin — the most popular digital currency on the market. Essentially, of the seven billion global population only 21 million bitcoins are available.
Getting Your Hands on Cryptocurrency
Bitcoin is difficult to get your hands on. It requires patience and diligence on your part. It requires knowing how to find bitcoin and making the transaction happen. You have to navigate demand; the more people want something the greater that something’s value.
Read More: Check out the latest & trending crypto news at Cryptoclan.nl
Bitcoin is Growing
Digital currency would have no value if no one accepted it. But its growing popularity and convenience are rapidly legitimizing cryptocurrency. The currency isn’t bound by exchange rates, making it a sound payment method for international transactions.
The likes of Microsoft and pizza shops are accepting cryptocurrency. Australia recognizes bitcoin as a traditional currency. Canada has released its own digital money.
Cryptocurrency shows no sign of going away.
Becoming a Cryptocurrency Mogul
Get a Wallet
The first thing you need is a bitcoin wallet. Just like a digital bank account, a wallet is a virtual storage center, a record of your holdings.
Your wallet options include (i) software; (ii) a web-based service; (iii) a vault protecting your assets offline; or (iv) a multisig that uses privacy keys (secret numbers used to spend bitcoins) to protect assets.
Online services may be the option for beginners, especially if complete anonymity and long setup procedures aren’t a priority. The seasoned investor finds this a nuisance as the point of investing in bitcoin is anonymity and privacy.
Another option is cold storage. These are secure wallets that store bitcoins offline. This can be a document containing data necessary to generate bitcoin privacy keys or a USB device kept in a safe deposit box.
Get Your Bitcoin
There are two ways to get your hands on cryptocurrency. Buy digital currency or get paid in digital currency. This lets you bypass having a sophisticated tech or managing complex software. Buy Bitcoin with cash, credit cards, or wire transfers. Remember a single bitcoin can cost a low five figures. But you don’t have to purchase a whole bitcoin. You can buy them in fractions.
Put your purchases in the wallet platform you choose.
Trade With Cryptocurrency
Gizmodo succinctly explains how cryptocurrency works. It acts as an intermediary “for currency transactions, converting wealth from BTC to INR, USD or other national currencies, back to dollars or bitcoin. And that’s how you make money. By exploiting the constantly shifting relative values of various currencies…”
The prices fluctuate constantly and rapidly. This is what attracts investors. Following the trends is as easy as finding yourself an exchange platform. This will be a great resource for getting a handle on the market and preparing yourself for digging deeper into the minutiae of buying and selling cryptocurrency in 2021.
Also Read: 4 Ways to Store Your Cryptocurrency Safely