More than a decade has passed since the first digital coin, Bitcoin, was launched, and cryptocurrencies continue to be a hot buzzword and asset in the digital economy. Their continuous growth in both numbers and value prove to critics that they are not a fad. Instead, they hold various benefits in several ways, such as empowering you to be your own bank by buying goods and services, as well as trading them for profit.
Crypto is undoubtedly an exciting industry filled with many possibilities. Yet at the same time, understanding its blockchain technology and exploring over 6,000 digital coins circulating the market can be confusing. Thankfully, the first step to entering their world is buying digital currencies that can be done in a few following easy steps presented on this page.
Similar to fiat money, you first need to have a wallet to store your crypto. The difference, however, is that it is digital that varies into two major different types: hot and cold crypto wallets. They are also called online and offline storage, respectively. Meaning, the former is connected to the internet, whereas the latter is not and instead uses portable devices like a flash drive. With each having respective pros and cons, Bitcasino lists down their two or more subtypes to help you decide even better.
Hot wallets are hassle-free and convenient, perfect for everyday use and basic transactions. That said, while their connection to the internet allows you to access your account wherever you are and whenever you want, it also means that you are vulnerable to digital dangers like technical errors and mischiefs. As such, you need commendable hot wallets to prevent such problems, but first, take a look further below for their subtypes.
As mentioned above, cold wallets are portable devices that only become online when used for transactions. Their secure offline storage feature makes them ideal for business owners, long-term crypto traders, or as what the industry likes to call them, hodlers (users who ‘hold on for dear life’). Here are their two subtypes:
Once done sifting through the many, many hot and cold wallets available in the market, another platform you need to meticulously find is a crypto exchange. It is a digital marketplace where owners can buy and sell digital currencies, and even convert fiat money into other assets according to the market value.
While crypto exchanges are like traditional stock exchanges — market makers that take bid-ask spreads as their extra charges for every transaction — they vary into three kinds. These are centralised (CEX), decentralised (DEX), and hybrids, each of which holds significant pros and cons depending on your preferred services.
To further protect yourself from several digital dangers, you need to rely on platforms that have the six following essential qualities:
Licensed crypto wallets and exchanges have successfully met federal regulatory requirements, including KYC (know your customer). Otherwise known as ‘know your client’, it is the process of verifying your identity by either submitting a copy of your passport/driver’s license or uploading a selfie to further prove your appearance matches your documents.
Before buying any crypto, you must first ensure that you have funds in your account. As said before, many exchanges allow users to convert fiat money into their preferred coins. Now, how it is done varies from one marketplace to another, possibly ranging from linking a bank account, authorising a wire transfer, or settling payment with a debit/credit card.
Now that the money is available in your account, you are ready to finally place your crypto order. The problem, however, is that there are more than 6,000 digital currencies circulating today in the market.
To get you started, listed as follows are the top 10 digital currencies in October 2021 based on market cap.
Before we let you go and explore more of the crypto market, Bitcasino leaves you 10 important tips to remember:
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