Let’s say someone has made the decision to start their investment path in the cryptocurrency market. The basic knowledge that this user should have is how to use his money and his bank account to buy a cryptocurrency and most importantly how to store these cryptocurrencies.
In today’s article we will analyze these exactly two steps.
We start with the first part which is the cryptocurrency market. In order to be able to monitor the evolution of the prices of cryptocurrencies as well as in which exchanges they are available you can use the coinmarketcap application.
Cryptocurrencies cannot be purchased by directly exchanging money for a cryptocurrency. The user will have to buy Bitcoin or Ethereum and then buy the rest of the cryptocurrencies with them.
The first step is to register with an exchange that accepts bank transfers. Necessary documents that will be requested are a copy of your passport/ID card and a utility bill of the last quarter.
Well-known and functional platforms for registering and sending bank transfers at this time are Kraken and Bitstamp. This guide that explains how to choose a cryptocurrency exchange might be useful at this point.
A well-known platform is Coinbase, which has high commissions. Another solution is to buy Bitcoin directly from individuals through the LocalBitcoins.com platform or to use a Bitcoin ATM.
‘’You can acquire free bitcoin through bitcoin faucets. Faucets are websites that give free bitcoin just for performing a simple task, such as solving a captcha. If you want to learn more, you can check this list with some of the best bitcoin faucets.’’
We move on to the second part of our article, which we consider the most important. Digital wallets (hardware wallets). Ideally, every user who chooses to invest in digital currencies, the first purchase he should make is that of a digital wallet device. These devices enable the user to keep on this device the passwords (private keys) as well as the cryptocurrencies purchased.
This provides double security compared to on-line digital wallets as literally millions of on-line digital wallets have been lost as malicious software manages to steal users’ digital keys when they try to access their wallets online.
The two most famous solutions on the market at the moment are the Trezor Model T and Ledger Nano S.
With the use of these devices, users can store their cryptocurrencies after their purchase in the exchange offices and reduce to a minimum the chances of theft of their investments. The cost of acquiring them is the minimum and prerequisite investment that the user must make before starting any activity of buying and selling cryptocurrencies. Concluding this week’s article, we would like to emphasize that each user should do their own personal research before deciding to take the step of entering the cryptocurrency market but if they decide to do so they must do so methodically and prioritizing security.
