In recent years a new form of currency has come into force. Many people are now using it while others still don’t understand the concept. A cryptocurrency is a virtual currency that you can transfer using networks and computers. It is safe to trade in, but due to lack of government support, some people find it risky to use. A unique feature of bitcoin which separates it from other currencies and makes it accessible is that it is free from authorities’ interference and is in the hands of private networks. It is also the reason the currency rate fluctuates so much.
It makes it interesting to invest and earn some profit from such a new form of currency. You need a cryptocurrency trading platform for investing in it. But before you start your investment, you must know the basics.
Set up a wallet
The necessary thing you need to transact and invest in cryptocurrency is to have a wallet. It would be best if you had it to store your money and for this; you have a choice to choose a software wallet or a hardware wallet. Some vendors provide you with the facility of online wallets that you can register for from your mobile or laptop. The issue here is you trust the third parties with your money, but there are some reliable vendors also in such markets. Another option is to have a hardware wallet. It is like having a cash wallet. Although the service providers in this category are less, you can find out some and register with them.
Link with the bank account
Once you have your wallet ready, you need to link it with your bank account to deposit and withdraw funds. You have an option to connect it to your debit or credit card, but in that case, you cannot transfer the money on selling to your bank account. Also, if you transact through the bank, you can trade for higher amounts, but debit and credit cards restrict your transaction limits. It is better to use an account so that both deposits and withdrawals are possible.
Find an exchange
For buying and selling the currency, you need to register to an exchange. It is like online shopping if you want to buy something you must register on an e-commerce website. Similarly, you need to register for transfer before you can start buying and selling such currencies. Different exchanges will give you various services, just like different websites provide separate services.
Placing the order
After all the steps, you are now ready to place an order. It depends upon your wallet and exchange how many types of orders you can set. Although the cost of bitcoins ranges in a few thousand dollars, you can even buy a part of it. It means that it is not mandatory to purchase a minimum one bitcoin; you can also buy it in decimals. Such flexibility makes it an attractive option for investors, as even if they are short of money, they can buy some part of it.