The first thing you need to commence trading a cryptocurrency like bitcoin is a strong and reliable internet connection. Then, you will need to open up a crypto trading account on a reputable cryptocurrency exchange that is a virtual or digital market to buy or sell your digital coins.
When registering your crypto account, you will come across two kinds of trading exchanges.
1. Fiat to Crypto Exchange
Fiat to crypto exchange is a trading platform that provides you with the opportunity to buy or sell cryptocurrencies, including bitcoin, ethereum, and Litecoin, using fiat currency. Fiat currencies are traditional money backed by their issuing governments, such as US dollars. Most people choose fiat to crypto exchange to open up an account because of their beginner-friendly use.
2. Crypto to Crypto Exchange
As the name suggests, this type of crypto market allows you to exchange one cryptocurrency with another. These crypto exchanges aim to serve experienced cryptocurrency traders.
Regardless of what type of crypto exchange you choose, the first step is to register with the market to open an account. You will then need to go through an account verification process designed to verify your identity. It will also require you to add a payment method.
After your account is open, it will allow you to transfer your funds, buy cryptocurrencies, and store them in a crypto wallet. The price you need to pay to buy cryptocurrency will depend on the crypto exchange you choose to open an account.
Choosing the Right Crypto Exchange
While many crypto exchanges are available across the World Wide Web, not every platform is reliable. For that reason, it is vital to do your home before deciding on one. Given below are some considerations that you must keep in mind to choose the exchange to open a crypto account.
- Safety Standards
Hacking and other security breaches have caused many bitcoin trading platforms to lose their customers’ sensitive information and crypto coins. It requires you to prioritize security for your assets stored on a crypto exchange. Make sure you do not consider a crypto trading platform that has had any security breaches, including hacking.
Check its user data encryption and privacy policies. Also, find out if the crypto exchange is using two-factor authentication. It is an electronic method that grants a user access to a site only after presenting more than one piece of evidence to the verification system.
- Transaction Fees
Many crypto trading platforms charge a fee for transactions like withdrawals and deposits. However, there are also some crypto exchanges where you do not need to pay any charges for these transactions.
The crypto exchange you choose should have an easy-to-use interface. It must allow easy navigation and a clear understanding of the usability of the trading platform.
- User Feedback & Reviews
Customer reviews and user feedback matter a lot when choosing a reliable crypto exchange. For this, you can visit numerous crypto forums like Reddit and BitcoinTalk and find out what others have to say about the crypto exchange you are considering having an account with. It will help you identify if a crypto exchange has users’ confidence because of its quality services.
Once you invest in cryptocurrencies, you will use a crypto wallet to store your digital coin. These digital wallets come with a public address, which you use to send your virtual money. Generally, several kinds of crypto wallets are available to choose from. These include mobile, web, desktop, hardware, and paper wallet. You can choose a crypto wallet depending on how you want to employ it. When you store crypto coins in your bitcoin wallet, it becomes your responsibility to take care of their security.