Investing in the Crypto Currency market space can be a little daunting for the traditional investor, as investing directly in Crypto Currency (CC) requires the use of new tools and adopting some new concepts. So if you do decide to dip your toes in this market, you will want to have a very good idea of what to do and what to expect.
Buying and selling CC's requires you to choose an Exchange that deals in the products you want to buy and sell, be they Bitcoin, Litecoin, or any of the over 1300 other tokens in play. In previous editions we have briefly described the products and services available at a few exchanges, to give you an idea of the different offerings. There are many Exchanges to choose from and they all do things in their own way. Look for the things that matter to you, for example:
- Deposit policies, methods, and costs of each method
- Withdrawal policies and costs
- Which fiat currencies they deal in for deposits and withdrawals
- Products they deal in, such as crypto coins, gold, silver etc
- Costs for transactions
- where is this Exchange based? (USA / UK / South Korea / Japan…)
Be prepared for the Exchange setup procedure to be detailed and lengthy, as the Exchanges generally want to know a lot about you. It is akin to setting up a new bank account, as the Exchanges are brokers of valuables, and they want to be sure that you are who you say you are, and that you are a trustworthy person to deal with. It seems that “trust' is earned over time, as the Exchanges typically allow only small investment amounts, to begin with.
Your Exchange will keep your CC's in storage for you. Many offers “cold storage” which simply means that your coins are kept “offline” until you indicate that you want to do something with them. There are quite a few news stories of Exchanges being hacked, and many coins stolen. Think about your coins being in something like a bank account at the Exchange, but remember that your coins are digital only and that all blockchain transactions are irreversible.
Unlike your bank, these Exchanges do not have deposit insurance, so be aware that hackers are always out there trying everything they can to get at your Crypto Coins and steal them. Exchanges generally offer Password protected accounts, and many offer 2-factor authorization schemes – something to seriously consider in order to protect your account from hackers.
Given that hackers love to prey on Exchanges and your account, we always recommend that you use a digital wallet for your coins. It is relatively easy to move coins between your Exchange account and your wallet. Be sure to choose a wallet that handles all the coins you want to be buying and selling. Your wallet is also the device you use to “spend” your coins with the merchants who accept CC's for payment. The two types of wallets are “hot” and “cold”.
Hot wallets are very easy to use but they leave your coins exposed to the internet, but only on your computer, not the Exchange server. Cold wallets use offline storage mediums, such as specialized hardware memory sticks and simple hard copy printouts. Using a cold wallet makes transactions more complicated, but they are the safest.
Your wallet contains the “private” key that authorizes all the transactions you want to initiate. You also have a “public” key that is shared on the network so that all users can identify your account when involved in a transaction with you. When hackers get your private key, they can move your coins anywhere they want, and it is irreversible.
Despite all the challenges and wild volatility, we are confident that the underlying blockchain technology is a game changer, and will revolutionize how transactions are conducted going forward.
If you are ready to make a speculative investment into this disruptive technology and want to receive all current and future recommendations from Crypto TREND Premium, we are keeping our Early Bird Special offer open for a little longer, to give our readers the opportunity to get started at a $175 discount.
Bitcoin is a comparatively new type of currency that has just started to strike the mainstream markets.
Critics state that using Bitcoins is unsafe because –
• They have no authentic value
• They are not regulated
• They can be used to make illegal transactions
Still all the major market players talk about Bitcoins. Below are some good reasons why it is worth using this crypto currency.
Quick payments – When payments are made by using banks, the transaction takes some days, similarly wire transfers also take a long time. On the other hand, virtual currency Bitcoin transactions are generally more rapid.
“Zero-confirmation” transactions are instantaneous, where the merchant accepts the risk, which is still not approved by Bitcoin block-chain. If the merchant needs an approval, then the transaction takes 10 minutes. This is much more rapid than any inter-banking transfer.
Inexpensive – Credit or debit card transactions are instant, but you are charged a fee for using this privilege. In the Bitcoin transactions, the fees are usually low, and in some cases, it is free.
No one can take it away – Bitcoin is decentralized, so no central authority can take away percentage from your deposits.
No charge-back – Once you trade Bitcoins, they are gone. You cannot reclaim them without the recipient's consent. Thus, it becomes difficult to commit the charge-back fraud, which is often experienced by people with credit cards.
People purchase goods and if they find it defective, they contact credit cards agency to make a charge-back, effectively reversing the transaction. The credit card company does it and charges you with costly charge-back fee ranging from $5-$15.
Safe personal details – Credit card numbers get stolen during online payments. A Bitcoin transaction does not need any personal details. You will need to combine your private key and the Bitcoin key together to do a transaction.
You just have to ensure that your private key is not accessed by strangers.
It is not inflationary – The Federal Reserve prints more dollars, whenever the economy is sputtering. Big Government injects the newly created money into the economy causing a decrease in currency value, thereby triggering inflation. Inflation decreases people's power to buy things because prices of goods increase.
Bitcoins are in limited supply. The system was designed to quit mining more Bitcoins on reaching 21 million. This means that inflation will not be an issue, but deflation will be triggered, where prices of goods will fall.
Semi – anonymous operations – Bitcoin is relatively private, but transparent. The Bitcoin address is revealed at the block-chain. Everyone can look in your wallet, but your name will be invisible.
Easy micro-payments – Bitcoins allows you to make micro-payments like 22 cents for free.
Substitute of fiat currencies – Bitcoins are good option to hold national currencies experiencing capital controls, and high inflation.
Bitcoins are getting legitimate – Major institutions like the Bank of England and Fed have decided to take Bitcoins for trading. More and more outlets like Reditt, Pizza chains, WordPress, Baidu, and many other small businesses are now accepting Bitcoin payments. Many binary trading and Forex brokers also allow you to trade with the Bitcoins.
Bitcoin is now the pioneer of the new cryptocurrency era, the technology that gives you a peek into future currency.
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