Being familiar with the way cryptocurrency works is necessary to be able to even begin thinking about trading. Explained in plain words, software platforms are necessary for using Bitcoin and other cryptocurrencies. Not only was there a new currency created that was never used before, but there was a need for creating software platforms so people can use the new currency. Even though Bitcoin appeared a decade ago, people are generally not yet fully aware of the way everything works. It is important to say that cryptocurrencies are no different than real money in its essence. It can be converted and used. However, since it is relatively new, people often feel confused about it. Here are some general guidelines that will help you understand the whole process well.
Be aware of the risk
This is the first and most important thing to say. Keep in mind that technologies sometimes fail and there is no bulletproof way for everyone to earn big easily. Remember, there is a software behind it, and it is made by people. This means that it is possible that it won’t work the first time around and it is a process. The evolution is slow but steady. Also, it requires being familiar with how the technology works. You cannot expect someone who doesn’t know anything about the software and the computers to come and win over the market. It is not impossible for sure, but it is highly unlikely.
Get familiar with all the terms
Once you start looking into trading with platforms like the bitcoinera.app, you will hear lots of terms that you are not sure what they mean. It is necessary to learn everything you can about each one, so there are no unpleasant surprises. The processing speed of the transactions, the available supply at the moment, and the supply of currency that will be available in the future are usually the things that interest people who have just started looking into trading. Try to find out if there is the need to use the software, are big investors participating, and if the background of the founders is reputable. Once you clarify everything that was not clear to you, the rest will be much easier.
Find one of the exchange services or the exchange apps such as de.bitcoin-pro.live where you can start your trading. Link your bank account or a credit card. If you wish to get Litecoin, Ether, or Bitcoin, that can be easily done. However, if you wish to get some currencies that are not largely used, think about an exchange. Find the market for that specific coin and exchange where the coin can be traded.
When it comes to opening the account, make sure you find the most reputable exchange and then proceed to the next step in the process which is finding the deposit wallet address for that specific coin. Next, you need to sign in to the account where the currency is bought. It may take a while for the transaction to be done, so take your time. Find the box that says buy and sell. Type in the amount you wish to buy. Click buy and you are all done. In the section for tracking orders, you will be able to see the status of your transaction. Depending on the exchange, some details may vary, but the essence is the same.
Storing the usual currencies is easy, you simply go to your bank and make transfers easily. Now those processes are even easier – lots of things can be done online. However, what happens with the cryptocurrencies? Well, there are “wallets” specifically made for this. They do not physically exist, but it is your personal address located on the blockchain that you can use at your own convenience. For each wallet, there are public and private addresses. The public one is necessary so that the people can send the money to you, while the private one is used for accessing and sending funds.
There are a few types of wallets that you need to be aware of. An online wallet is a practical way to store money. However, some people don’t like it because it has some security shortcomings. Some people prefer to use it only for buying and funding the accounts, but not for storage. The next type of wallet is a mobile wallet. It is an app that is used for storing money. It offers greater security, but you should be aware of the risk in case your phone gets stolen or if there is some malfunction. In that case, you would face a loss of all the currency you had there.
Similar to this, there is also a desktop wallet. This one may be more secure and it is used by many people around the world. Hardware device wallet may be the safest option, but it is certainly not without risk. It can also be damaged. In addition, there is also a paper wallet. It is least susceptible to hacking, but it has to be stored somewhere safe to avoid any manipulations. Choose the one you believe is the best one for you specifically.
Track the cryptocurrency
In order to be fully familiar with the changes that occur on the market, you need to track the prices. The best solution would be to choose an app that you like and see all the currencies in one place. There are great apps for this, but it is important to say that they cannot be used for trading or storing. Check each one available and see what works best for you.
We hope our guide will help you to make your way into cryptocurrency trading. Keep in mind that nothing happens fast, so take it step by step. Read and learn about each step of the way, do your research, and invest your time to learn about each aspect of the trade. The more you know the more you will be able to earn.