It’s not a surprise that before buying your first bitcoin, you need to spend some time exploring all the benefits of blockchain technology. Its history, functionality, as well as key disadvantages, must be well-studied.
Think about conducting a research on competing platforms as well. Newbies should try their best to learn about major exchanges, wallets, and secure storage procedures. Today, you will find out the key tips and facts you should know before buying a crypto. Let’s get started!
Key Tips to Note Before Buying a Crypto
Today, ‘a hype’ caused by cryptosphere itself it’s not something unusual. However, make sure you know how to deal with it before buying a crypto. Let’s consider the key tips every crypto-enthusiast should know about!
1. To purchase your first cryptocurrency, you will need to have a wallet. Here are the main types of crypto wallets:
- Hot (or online) wallets – wallets of that kind don’t require special software installing on the user’s computer. Among the good ones, let’s highlight Coinbase, Cryptonator & Blockchain wallets.
- Cold wallets – these ones are released as a program for PC installing. Among the cons, let’s note the necessity to download the ‘entire’ blockchain. Its size is enormous. However, there are cold wallets that take up minimum storage space. As an example, I will highlight Jaxx, Electrum & Exodus wallets.
- Paper wallets – here all information for a wallet accessing is encrypted in the form of a QR code. Moreover, the data isn’t stored on the website. The user prints the paper and stores it in a hidden place. A good example of such a wallet is BitAddress.
- Hardware wallets – these wallets are available in a form of special devices resembling a flash drive. These ones provide high-level crypto security. That is, they’re suitable for large amounts of coins storing. The best ones are Ledger, Trezor, Keep Key & Pi Wallet.
2. Bitcoin isn’t the only reliable cryptocurrency. If you’re about to invest in digital assets, don’t be obsessed with BTC. Just think about including other hot cryptocurrencies in your portfolio.
3. Before buying a crypto, make sure you calculate the commission each exchange offers. Due to inexperience and choosing the simplest way, you can lose a lot on commissions.
4. If you’re about to buy cryptocurrency, just don’t purchase them during an unstable exchange rate. It will be more profitable to wait or invest in promising cryptocurrencies until they increase sharply.
What I Need to Know to Buy Cryptocurrency
Nowadays the issue of how to buy cryptocurrency is under heated discussion. There are other five important facts you need to know to buy cryptocurrency.
Team of Developers
Before buying bitcoins every crypto-enthusiast should pay attention to the team of developers. A handpicked team is a ticket to success of any crypto project. Try to google more info about the project you want to deal with. Of course, in case developers don’t hold the details confidential as Facebook (Libra coin team) does.
To find out how you can buy cryptocurrency, you should check current regulations of your place of living.
Means of Payment
The best ways to get coins usually correlate with the most widespread means of payment. Among various means of payment let’s distinguish the most common ones, such as:
- credit card;
- debit card;
Each platform accepts various means of payment. So, check a few of them first before making a decision.
If you want to invest in crypto, you should find out about fixed coins’ emission as well. A crypto with a higher cost usually has a poor market offer. You can find out the real cryptocurrency cost by dividing its market capitalization by its current offer
Here is one key note: don’t try to invest in crypto your last money. First of all, make sure you have enough to spend and then invest. Good luck!