Are you looking to get into cryptocurrency investing? If so, you’ve probably already heard about the digital currency market and the huge potential for profit. But with all the hype surrounding it, it can be difficult to know where to start.
Cryptocurrency is a complicated world with lots of moving parts, but if you know where to look and how to use the right resources, it doesn’t have to be overwhelming.
A cryptocurrency exchange is a platform where you can buy, sell and trade cryptocurrencies. The first thing to keep in mind when choosing an exchange is that they are all different. They each have their own unique set of fees, features, and benefits, so it’s important to do some research before deciding where you want to trade.
For example, one exchange might charge a flat fee for all trades made on the platform no matter what time of day or how many times you place a trade (this type of fee structure is called “flat rate”). Another could charge 1% per transaction but only if your account balance falls below $20K USD at any point during the month (this type of fee structure is called “volume-based”).
Each of these options has its own pros and cons: A flat rate may be more affordable at first glance as long as you don’t plan on trading often. However, if your account balance dips below $20K USD, then volume-based fees become cheaper in terms of total cost per transaction. There’s no right answer here—it just depends on your situation!
A wallet is a software or hardware device that stores your cryptocurrency. Wallets have different features and benefits—some wallets are better for small transactions, while others are more secure and can store multiple cryptocurrencies.
Depending on your needs, here are some types of wallets:
- Software wallets run from your desktop or laptop computer; they’re easier to install than hardware wallets but less secure once you’ve downloaded them.
- Mobile wallets are apps that you can download to your phone or tablet (often available in app stores). They’re convenient because they allow you to make payments with just your smartphone, but they aren’t as secure as hardware or paper wallets.
- Web-based wallets work like online bank accounts—you can log into them from any computer connected to the internet (or even with access through public networks such as libraries and cafés), but they’re susceptible to hacking attempts if not properly protected by two-step authentication methods like Google Authenticator or Authy.
There are a number of online businesses accepting cryptocurrency as payment, including airlines, telecommunications companies, and even beauty products. Some of these businesses have been around for a while but have only recently started accepting cryptocurrency (for example, Shopify began accepting Bitcoin in 2014).
The reasons for this shift are simple: it is more secure for both the merchant and the customer. For merchants, this means not having to worry about chargebacks or fraud—once you receive your funds in your wallet, they’re yours to spend however you like.
For customers, it means being able to avoid some fees associated with credit card payments—some services even give the option of paying with crypto for free! The future looks bright for this type of payment method—it’s estimated that there will be three billion people using mobile phones by 2020 so expect more online retailers than ever before to offer their goods via cryptocurrencies.
BTC price watching
You should be paying attention to the price of Bitcoin and other cryptocurrencies. When you’re new to cryptocurrency investing, it’s easy to get caught up in the excitement of a big surge or fall in prices. But if you want to make smart decisions about your investments, it’s important not just to keep tabs on how much your holdings are worth but also when they’ve reached certain levels.
There are many ways that investors can track their portfolio’s value over time—from manually entering data into a spreadsheet or app every day or so to using an online service like CoinMarketCap or CoinDesk that automatically updates prices as they change.
The most effective way is probably by using both types: manually updating prices on apps and websites with real-time information and then checking those same apps and websites once a week for more detailed long-term trends (such as whether Bitcoin has been consistently outperforming Ethereum).
In the world of cryptocurrency, there are two main types of miners: those who buy expensive machines and those who use their computers.
If you want to get into mining but don’t have a dedicated machine, then you’ll need to use your regular PC. Your computer can still be used as a mining device; just install one of the many available software programs that allow users to connect their devices to their computers (this is called “cloud mining”).
This technique requires little technical knowledge and doesn’t require any extra hardware outside what you already have installed on your computer—the program simply uses the CPU or GPU portion of your system’s hardware power for mining purposes.
If you want to start getting into cryptocurrency, there are lots of great tools that make it easy to get started. For example, the first thing you will need is a wallet. This is where your funds will be stored and managed until they are used or sent elsewhere.
Generally speaking, there are two main types of wallets: software and hardware. Software wallets can be downloaded on any device with an Internet connection and work by connecting directly to the blockchain network.
Hardware wallets (or “cold storage”) store data offline so users don’t have access to it via an internet connection and therefore cannot be hacked remotely by third parties attempting unauthorized transactions using their account credentials or other methods damaging their assets stored therein (e-wallets).