| | Committing to the Crypto Currency market trading space can be a little daunting to the traditional investor, as investing directly in Crypto Currency (CC) requires the using new tools and adopting some new concepts. So if you do decide to dip your toes on this market, you will want to possess a good concept of what direction to go as well as what to expect.
Exchanging CC's requires you to decide on an Exchange that deals in the products you wish to buy and sell, be they Bitcoin, Litecoin, or the over 1300 other tokens in play. In the past editions we've briefly described the products and services offered at a number of exchanges, to offer you a concept of the various offerings. There are many Exchanges to select from and they all do things in their own individual way. Search for things that matter to you personally, for instance:
- Deposit policies, methods, and costs of every method
- Withdrawal policies and costs
- Which fiat currencies they supply for deposits and withdrawals
- Products they supply, like crypto coins, gold, silver etc
- Costs for transactions
- where is this Exchange based? (USA / UK / South Korea / Japan...)
Be ready for the Exchange setup procedure to get detailed and lengthy, as the Exchanges generally want to know a whole lot about you. It is similar to generating a new bank-account, as the Exchanges are brokers of valuables, and so they want to be certain that you might be who you say you are, and you really are a trustworthy person to handle. It would appear that "trust' is earned after a while, as the Exchanges typically allow only small investment comes down to commence with.
Your Exchange will keep your CC's kept in storage to suit your needs. Many offer "cold storage" that only implies that your coins are kept "offline" and soon you indicate that you would like to do something using them. You'll find quite a few news stories of Exchanges being hacked, and lots of coins stolen. Take into consideration your coins in something similar to a financial institution account with the Exchange, but remember that your coins are digital only, understanding that all blockchain transactions are irreversible. Unlike your bank, these Exchanges would not have deposit insurance, so be aware that hackers will always be available trying everything they could to find your Crypto Coins and steal them. Exchanges generally offer Password protected accounts, and many offer 2-factor authorization schemes - something to seriously look into to protect your money from hackers.
Since hackers love to victimize Exchanges along with your account, we always recommend that you have an electronic digital wallet to your coins. It can be not too difficult to advance coins between your Exchange account along with your wallet. Make sure you select a wallet that handles every one of the coins you want to buy and selling. Your wallet is also the product you have to "spend" your coins with all the merchants who accept CC's for payment. Both the forms of wallets are "hot" and "cold". Hot wallets are incredibly user friendly nevertheless they leave your coins exposed to the world wide web, but only on your computer, not the Exchange server. Cold wallets use offline storage mediums, including specialized hardware memory sticks and straightforward hard copy printouts. By using a cold wallet makes transactions harder, but they're the safest.
Your wallet has the "private" key that authorizes each of the transactions you wish to initiate. You also have a "public" key which is shared about the network so that all users can identify your when associated with a transaction along with you. When hackers get a private key, they could move your coins anywhere they desire, which is irreversible.
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