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As they continue to play an increasing role in our daily lives, the benefits of cryptocurrencies are becoming clear to more and more people. However, the majority of the global population is still uninformed about how to start purchasing, investing in, and profiting from the cryptocurrency market. This article will provide an overview on how to get started in a straightforward, understandable way.
The first step to using cryptocurrencies is to set up a cryptocurrency wallet, which you can do online in less than a minute by navigating to one of thousands of online wallets and clicking “create wallet.” Once you’ve created a wallet, you receive a seed phrase (a series of words) or a private key. Whichever it is, make sure to make two secure copies. If you lose your private key/seed phrase, then you lose your wallet. This is the single most important consideration when it comes to cryptocurrency.
There are many wallet options. Exodus is a good choice, as it’s stored locally on your computer and can hold hundreds of different cryptocurrencies. Instead of having many wallets for different cryptocurrencies, you hold many currencies in one secure, streamlined wallet. In a multi-crypto wallet like Exodus, each cryptocurrency has its own unique address, a series of alphanumeric characters that you need to input to receive cryptocurrencies into your account. Overall, it’s comparable to the IBAN identifier for bank accounts, with the main difference being that no personally identifying information is affiliated with cryptocurrency accounts.
Once you have your cryptocurrency wallet, you can begin to purchase some crypto. There are many ways to do this. An easy place to start is by purchasing a major crypto like Bitcoin (BTC). Afterwards, you can convert your BTC to “altcoins,” which are any one of thousands of cryptocurrencies other than BTC. Currently, two of the most popular altcoins are Ethereum (ETH), or Litecoin (LTC). You will need to paste your wallet address and make payment to receive your cryptocurrency into your wallet. Keep in mind that there is typically a 3% - 10% surcharge on straight crypto investment.
Here are some basic methods you can use to buy cryptocurrency.
The centralized exchange is also known as a “CEX.” Prominent examples include Kraken, Binance, and Coinbase. You have to undergo KYC verification first, meaning you will need to upload government-issued identification to invest, if you want to make a purchase.
It is possible to purchase cryptocurrency online without undergoing KYC, but only when your purchase is below a certain amount. By buying these low amounts of crypto, you give yourself the advantage of not needing to sign up on any kind of centralized platform. Shapeshift is one online platform that offers direct crypto sales without any signup process.
The Peer-To-Peer (“P2P”) platform is different from the CEX. Here, you place an order from an individual seller, instead of a huge exchange. The P2P platform effectively operates as an escrow system. When a trade is initiated, the crypto is held in escrow until you make payment. When the seller confirms payment, the crypto is released. Be sure to select a seller with a good rating and more than 100 trades for your own security. Otherwise, you may wind up needing to dispute a transaction. Some of the largest crypto P2P platforms include LocalBitcoins, Paxful, and Binance P2P.
There are also P2P platforms where you can complete trades without needing to verify your identity. These operate on decentralized ledgers with much lower fees than legacy platforms. Examples are Hodl Hodl, Bisq, and Whales Heaven. LocalMonero.co also allows you to invest in Mineral (MNR) and Monero (XMR), two of the best privacy-based coins on the market. Other platforms allow a higher daily limit without having to undergo KYC. ByBit allows daily trading of up to $1000 without KYC.
The Bitcoin ATM (“BTM”) is an easy and useful way to gain exposure to cryptocurrencies because it allows users access via a withdrawal method they are familiar with. Similarly to a traditional ATM, with the BTM you simply fill in transaction details, insert cash, and wait for your funds to arrive. It’s KYC free up to a certain amount, which is about $900 in the USA.
As shared by Crypto Dispensers, you can receive your Bitcoin in less than ten minutes when using one of their BTMs. It’s an easy way to buy, sell, and take profits. You also benefit from using a secure and compliant company with transparent fees. The crypto industry is known for having a large number of scam artists who prey on beginners in the industry.
How do you maximize your crypto’s returns? That is the question. After all, the goal of investing is to make a profit that you can use to reinvest and/or spend on things that make you happy. One strategy is to sell any of the above-mentioned cryptocurrencies for a cash profit. This can be one great way to build long-term, sustainable wealth. But cryptocurrency is ultimately redefining the way that we think of money. It’s becoming increasingly viable as a transactional currency. As your crypto appreciates, you can now use it to purchase a flight ticket, luxury item, house, rental apartment, or any number of goods and services, all without having to pay any fees or commissions.
Remember to always be mindful of wallet security. You can’t take any profits from cryptocurrency if you lose your funds. And before you conclude no such thing will ever happen to you: this type of accident has happened to quite a lot of people who might’ve been millionaires had they been a little more attentive.