It was in May 2010 that Satoshi Nakamoto executed the first bitcoin transaction, and it achieved a valuation of $1 in February 2011. In just 10 years, bitcoin has skyrocketed to $41655.40. The entire crypto-verse now treasures a market capitalization of $2.6 trillion.
Besides Bitcoin, we currently have Ethereum, Solana, Dogecoin, Shiba Inu, Tether, and more than 8000 similar coins. So, how does the crypto-verse function? How to sell, buy, exchange, or hold crypto coins? Read further to clear all your doubts.
Buying cryptocurrency is as simple as doing a UPI transaction. However, the hack here is research. It is important to analyze the dynamics of the market to gather enough information about the upcoming fluctuations in their prices. In the long haul, things may be on the shiny side; nevertheless, it is recommended to step into this arena after a comprehensive investigation.
To purchase cryptocurrency, the first step is to find a suitable crypto exchange platform such as Coinbase exchange, Binance, and Bitfinex India. Begin by registering on the forum and completing the mandatory personal and bank-related information. Set up the two-factor authentication code for securing your crypto wallet.
There are two important components of an online crypto account, address and private keys. The former is similar to a bank account number, unique to every user. However, it is important to remember no two coins have the same address for the same user. The latter is a distinctive signature to execute a transaction. No coin can be sent without a private key, and none can be received without an address. It is the leak of private keys that leads to heavy loss by cyber hackers.
After setting up the account, the user can start trading crypto. Just transfer money from the bank account and buy it in exchange for crypto coins. Exchange platforms offer features like a market order, limit order, and stop order which helps to buy or sell crypto at a specified amount automatically.
For a smooth experience, It is recommended to use crypto converters such as Bitcoin converter to know the value of a coin across the globe.
Similar to buying and selling, various coins can be exchanged for another. For example, bitcoin can be exchanged for Ethereum, Solan, and others.
Holding crypto coins requires some extra effort as compared to trading them. Wallets on exchange platforms are owned by them, including the keys; they are technically custodial wallets. Experts advise building non-custodial wallets to safeguard crypto coins for the long haul.
Some of the non-custodial types of wallets are cold wallets (a hardware device to hold the private keys), hot wallets (securing private keys online on mobile or PCs), paper wallets (a printed key via key generator program). However, these are slightly hectic procedures to execute but grant security from all ends.
The last words
The world has already agreed to the fact that cryptocurrency is the future. So, beginning to invest in it is the smartest movie one can take in the current times. Nonetheless, research before beginning is the ultimate requirement for sustenance in the longer run.
Read more: A Guide for Buying Your First Cryptocurrency