Entering the world of cryptocurrency can be scary at first, but with the right tools and guidance, you should have nothing to fear. First, we must take a step back and understand what cryptocurrency and what Bitcoin is.
Cryptocurrency is a digital or virtual currency or also known as a digital asset that has a decentralized system and uses cryptography for security which is based on blockchain technology. It is a very unique medium of value in that it can act as a currency, commodity, or even stock/ bond. The most common use of these coins is the use of a currency, Bitcoin is the largest coin in terms of volume and is used mainly as a currency and transfer of value from party to party.
Bitcoin is the world's first open-source and decentralized peer-to-peer payment network created by the pseudonym Satoshi Nakamoto in 2008. It operates pure P2P electronic transactions, allowing online payments from one party to another without going to any financial institution. The consensus algorithm is used for Bitcoin Proof-of-Work (PoW).
Do your own research (DYOR) on a couple of different projects to see which are interesting to you. In the crypto world, it can be easily swayed to invest in a certain project because someone famous tells you to. This is called shilling, which, unfortunately, happens frequently when investing in cryptocurrency. An example is when Elon Musk tweets about $DOGE trying to get the price to pump.
2. Short-term or long-term investment?
The next step is to determine if it is going to be a short-term or a long-term investment. Always have an exit plan prior to investing!
3. Create your first cryptocurrency exchange account.
The easiest way to get a coin into your hands (or wallets as they are called) is to use an exchange like Coinbase or Binance for example. This allows you to attach a bank account or credit card to your account and quickly buy/ sell Bitcoin. Once you have Bitcoin you can go to any exchange and sign up for an account. Once you have registered you will need to transfer funds from your Coinbase or Binance account into your specific exchange account. This is easily done by just copying and pasting the exchange wallet address into the sending information on your original wallet.
The basic signup process for each exchange is very similar. We've outlined any special instructions for each exchange under the category for specific exchange information (Note: if you want to trade a cryptocurrency against a fiat currency, exchanges that offer this ability will require you to input varying degrees of personal information). Find a step-by-step guide to creating an exchange account here.
Managing multiple exchange account and wallets can be tiresome but Coinigy is there to be your one-stop shop. Coinigy is a cloud-based cryptocurrency trading platform that offers access to more than 45 exchanges. Coinigy's connectivity across the cryptocurrency universe allows everyone access to real-time pricing data, trading, and portfolio management/aggregation tools.
You can start your 30-day full-featured free trial by going to Coinigy today!
5. Connect your exchange to Coinigy and start trading!
Your final step is to connect your exchange account to Coinigy and begin trading! Coinigy gives users a plethora of tools that exchanges don't. Never miss a trade when you set price and trade alerts while managing all your exchange accounts in one place.