Considering the volatility and unpredictability of cryptocurrency, you might believe that people adopt a reluctant attitude when it comes to investing in this digital asset. However, the reality is that after witnessing the increased value of cryptocurrency in just one year, some even took the major decision of mortgaging their houses in order to gather the necessary funds and achieve their main objective, which is to purchase these hot products available in the virtual world. Some of the most popular crypto currencies refer to Bitcoin, Ethereum and Ripple. Those who advocate for exchangeable cryptographic tokens strongly envision these digital elements replacing traditional and official currencies like Euro and Dollar, but financial experts advise the average person to stay away from these types of investments. If you are fully aware that you are about to make a risky investment, but you still want to proceed, then reading this article will help you obtain the needed guidance throughout the process.
Of course, staying up to date with crypto regulations and news is extremely important. Now, starting with the basics, you have to create a digital account. Whether you opt for a wallet or an exchange, you should not that both of them consist of two important elements, which refer to a private key and a public key. Obviously, we are not talking about the physical object that helps you get inside your house or car, but alphanumeric characters that have the purpose to protect your holdings in the digital community. The private key allows you to withdraw money from the account you recently created meaning that it plays an important but subtle role in all your transactions. It is common sense and we do not to insult your intelligence, but you have to provide extra security for that private key. In order to avoid frauds, do not email it or save photos of it. In what concerns the public key, you can view it as your bank account number. Unlike the private key, you can share it with those who want to send you money. Practically, it allows you to receive deposits to your wallet or exchange.
This paragraph focuses on the two options available when creating an account. A wallet resembles the one you hold in your pocket because it stores your cryptocurrency. At this point, you can choose between a Paper Wallet, a Hardware Wallet and a Digital Wallet. With the Paper Wallet, you just need to print your two keys on paper and put them in a place that nobody else has access to, like a safety deposit box. The Hardware Wallet, which practically represents a removable drive, seems to be the most secure and the Digital Wallet the most convenient. Exchanges refer to buying and selling cryptocurrency. Until you decide if you want to buy or sell, you have to keep your digital assets inside the wallet. You just need to determine the amount you want to buy or sell and the price you expect to receive or intend to offer.