Cryptocurrencies are a fairly new field with plenty of room to grow, and while they have been around for some time, only recently have they gained enough traction to be considered a major market.
If you’re interested in getting into the cryptocurrency markets, it’s important that you understand what it is you’re investing into. There are four main things every potential investor should know about before making an investment: cryptocurrency exchanges, transaction fees, offline wallets and online wallets. Here we will cover these four topics briefly so that you can use this knowledge in your investing on ico marketing too!
1. Cryptocurrency exchanges
When you invest in a currency, you need to exchange it into a traditional currency before you can use it. This means that you must register an account with one of the many cryptocurrency exchanges, and once registered, link an existing bank account or credit/debit card to your account in order to transfer money from your existing bank balance into the cryptocurrency exchange balance.
Some cryptocurrency exchanges don’t allow the purchase of cryptocurrencies with a debit/credit card or with PayPal so it’s important that you know this when buying currencies on an exchange. Many cryptocurrency exchanges, however, will allow you to buy cryptocurrencies with a bank account as well.
Cryptocurrency Exchanges are like traditional stock exchanges with the difference being that they trade in virtual currencies instead of physical stocks. The main advantage of being able to trade on these is that unlike traditional stock markets, they have no restrictions on speculative trading and can be used more readily by investors.
A few important features of the cryptocurrency exchange system include:
Cryptocurrency market capitalization – The total amount of money invested in all cryptocurrencies compared to the total value of all cryptocurrencies held by all investors.
Order book – A list showing available orders. Users find orders on the order book and fill them by buying or selling.
Price – The price (value) at which the cryptocurrency is bought and sold
Price limit – A cap set by the exchange on how much the purchase can cost. This is often in fiat currencies such as US Dollars, although some of the newer exchanges may use cryptocurrencies instead of fiat currencies such as Bitcoin, Ethereum etc. And the site detail is here.
2. Transaction fees
It’s important to understand the fee or cost you will pay when buying and selling cryptocurrencies. It will depend on the cryptocurrency exchange that you are using, but it is usually fairly cheap to buy and sell on some exchanges such as Binance, Kraken and Poloniex while being very expensive to use on others. Here are some of the fees or costs associated with exchanges:
Buy order fees – When you place an order to buy a cryptocurrency, the exchange charges a fee which varies depending on the transaction price. The higher the price, the higher this fee is likely to be.
Sell order fees – When you place an order to sell a cryptocurrency, the exchange charges a fee which varies depending on the transaction price. The higher the price, the higher this fee is likely to be.
3. Offline wallets
It’s important to take care of your cryptocoins using offline wallets rather than online wallets because most exchanges use online wallets for their users. This means that if you lose access to your online wallet, you may lose all of your coins as they are held in a system which is connected to an internet connection and can therefore be accessed with ease by another user.
Offline wallets are stored in a hard drive and are not connected to the internet. This means that they cannot be accessed by another user and that your coins cannot be stolen by hackers.
The most popular offline wallet is Coinomi , which is a software wallet for Android phones. You can also download the Mycelium Wallet app , which works on iOS and Android phones, or you can set up a paper wallet using BitAddress. It is for good Blogger Outreach.
4. Online wallets
As we have previously mentioned, online wallets are wallets which are connected to the internet. This means that if your computer or phone is hacked, or infected with malware, your coins can be stolen without you ever knowing about it.
You can maintain a number of different cryptocurrency wallets with an online wallet, and although it’s not recommended to store all of your coins in one location, it can be convenient for keeping some small amounts on them for everyday use.
An example of an online wallet is MyEtherWallet . It’s important that you only download wallets from the official website and not from any other source. There are also mobile wallets which store the information on your phone rather than on a computer, such as Jaxx , Coinomi , Coinbase and Exodus .
5. How to invest
Now, having learned about cryptocurrency exchanges, crypto igaming and transaction fees and offline and online wallets, you may be asking yourself how you can invest in cryptocurrencies.
As previously mentioned, before investing you must first know who the exchanges are that allow you to buy the currencies with a debit/credit card or with PayPal as these will not always be available on every exchange. Next, you’ll need to learn how the fee structure works on exchanges, as well as which ones have the lowest transaction fees so that your investment is profitable. You should also set up a paper wallet for high-value coins.
Finally, you’ll need to decide if it’s smart for you to keep your cryptocoins in an online or offline wallet.