If you know anything about cryptocurrency, then you will be more than aware that there is a booming need and interest in this interesting and exciting development. More and more people are choosing to invest in cryptocurrency, be it Bitcoin or another type, and that has pushed interest further skywards. Nowadays, cryptocurrency is being slowly accepted by more and more companies as a legitimate form of payment, with the same kudos as cash or credit/debit card transactions.
Understanding cryptocurrency is really the first port of call, because at first glance it can be a very confusing issue to get your head around. Basically, cryptocurrency is a digital form of cash, and it is not regulated by any central body, e.g. a bank. This means that transaction fees are low, if not non-existent, and that transactions are also instant, almost anywhere in the world, depending on any restrictions your particular type has.
Tips on How to Buy and Sell Cryptocurrency
Online sources of information, such as Crypto Investigating Pro, are a great way to really understand everything there is to know about cryptocurrency, meaning that you’re not likely to fall foul of any issues or pitfalls, and leading you towards success and hopefully profit. Once you understand all there is to know about this ever-growing phenomenon, you will quickly see its major advantages.
So, once you understand it, and you have a firm grip on the basics, you’ll want to begin buying and selling. Many people don’t understand the difference between buying, selling, and trading, but it is basically the same thing, although with trading, you buy with the intention to sell on at a later date, at a higher price, to make a profit. When you simply buy and sell, these are mainly for your own use, therefore a good option for starting.
The first thing you need to do is decide which cryptocurrency you’re going to opt for. There are many out there, and it’s not just about Bitcoin! Do your research to find out which one works best for you, and which one has the lowest transaction fees or waiting times. Each type of cryptocurrency has its pros and cons, so it’s really about weighing them up and making your own personal decision. From there, you need to decide where you are going to do your buying and selling.
There are countless cryptocurrency exchanges online, and you need to find one which suits your needs, just as much as the actual type of cryptocurrency you opt for. There are three main types – broker, trading platform, and direct trading. As a beginner, a broker is always going to be the simplest option to go for, but it is also the most expensive. This is because brokers are much like foreign currency exchange offices, and they charge a fee for their service. This fee is set by the broker, and cannot be negotiated. It is often the case that the more cryptocurrency you buy or sell, the higher the fee.
Trading platforms aren’t difficult to use, provided you do your research into finding the right one for you. This also charges a fee, but it is lower than a broker. Direct trading is when you deal with a buyer or seller directly, and you arrange the fee between you – this is something you can work up to as you become more experienced in buying and selling cryptocurrency.
You then need to decide how much you want to buy, or how much you want to sell. This is done through the platform and the transaction is instant. If you buy cryptocurrency, the register is updated, to say that you now own that particular ‘coin’. The seller will ‘sign off’ the transaction on the register and transfer ownership to you. When you sell cryptocurrency, the opposite procedure occurs, and you ‘sign off’ the currency and send ownership to the buyer. Once this is done, the currency disappears from your wallet instantly and credits to theirs, within a very short space of time, usually around 30 seconds to a minute. The fee is taken by the currency exchange, and the transaction is complete. This can all be done very quickly, but as a starting point, it’s worth taking your time and exploring the procedure, to make sure you are totally familiar.
As you can see, buying and selling cryptocurrency isn’t difficult, and the hardest part is really deciding which currency exchange you’re going to go for. Do remember that cryptocurrency isn’t regulated by any third body, it is totally decentralized, and that the currency exchange you’re dealing with isn’t part of the regular stock exchange.