Cryptocurrencies are currently one of the fastest growing markets in the world. And because there is not just one option how we can get out crypto coins, we have created the following guide in which we will uncover to you all possibilities how to get or profit from cryptocurrencies. So without further introduction, let’s dive right into it.
Cryptocurrency Wallets – Save your coins
If we want to own cryptocurrency, we have to save it somewhere and exactly for this purpose there are cryptocurrency wallets. Do not be afraid, it’s nothing complicated, your crypto wallet can be for example an application on your smartphone or on your computer. Simply put, it is a software where you can manage your coins.
Once we own a cryptocurrency wallet we can fill it with coins. In order to do that we can buy them on cryptocurrency exchanges which are designed for this purpose.
Cryptocurrency Exchanges – For long-term holding
At cryptocurrency exchanges, you can buy or sell crypto coins. You can either buy them with other digital currency or with traditional currency like American dollar or Euro. There is not just one crypto exchange where we can get our coins. Which means that we have to pick between them. When choosing the best crypto exchange we have to consider its liquidity, fees, purchase and withdrawal limits, trading volume, security and insurance besides many other aspects. As the best one is usually considered CoinBase. It has a very friendly interface, even for beginners and they have the best insurance. But very well known and very often used are also: Poloniex, Kraken and BitStamp
Most cryptocurrency exchanges require you to provide your ID in order to open an account, so do not be surprised by this fact. The rumour that cryptocurrencies are absolutely anonymous does not apply everywhere.
Cryptocurrency brokers – Speculate on price movement
A lot of brokers who offer forex trading also includes cryptocurrencies in their portfolio. Here you can trade and speculate on the future price moment of the most common cryptocurrencies. When choosing the best crypto broker you should look for spreads, the number of cryptocurrencies their offer, the reputation of the broker and whether they are regulated (supervised by a regulatory body). This option is great especially for people who want to speculate on a cryptocurrency price movements on a regular basis. Most brokers offer very easy to use trading platform, so simply you put in your investment and you can start trading right away, you do not have to worry about any wallets or stuff like that. On the other hand, If you want to just once buy a cryptocurrency and hold it until the end of days, cryptocurrency exchanges will be a better choice for you.
Mining – Powerful computers required
All coins have to be mined out in order to be in circulation. By this way, a lot of people make a living, especially in China. Would you believe that 71% of all Bitcoin were mined there? Incredible what this nation can do. This option, however, is not as attractive as it used to be because in order to mine out any cryptocurrency coin you need to have a super powerful computer. Such computers are very expensive plus you have to count with the electricity power which is a huge factor here (so it is a good choice in countries where the electricity is relatively cheap). That being said, for most people, it is easier just to speculate on cryptocurrency movements
Conclusion – Pick the one that suits you best
As you can see there is not just one option how to obtain cryptocurrency coins. Which means that you have to decide for yourself which choice is the best one for you. Once you decide in which way you will get your coins, you have to think about which cryptocurrency has the most promising future now. For me, it is currently Ethereum thanks to decentralized applications which can possibly have a great impact even on our everyday life.
For more about Cryptocurrencies and investment checkout www.TradingBeasts.com