Cryptocurrency is an electronic currency. It is not a physical held money, but it is operated using an online platform. Transaction in the crypto currency world is done without a third party as experienced in banking system. One can make transfers of the coin to anybody anywhere and anytime without restricts and transaction fees. Some of the cryptocurrency coins include, Bitcoin, Ethereum, Litecoin, Tron, Bitcoin Cash amongst others.
Cryptocurrency can be purchased, through bank deposit, bank transfer, credit card or peer to peer deposit. Cryptocurrency can be used as an investment. It is beneficial when the currency of crypto traded rises in value. Currencies bought or obtained is stored in an online wallet. Each currency has its wallet which helps users store their value.
The disadvantage of trading cryptocurrency is that transactions cannot be traced in case of any fraud by online scammers. So users must ensure that they take care to avoid being scammed.
Cryptocurrency is not controlled by the government meaning that your investments is not monitored by the government as in normal banking system since they never issued it to you. The government do not have any hand in your investments and so they can’t help if need arises.
Cryptocurrency can rise and fall at anytime. It can change at anytime. Your deposits which is valuable can instantly be made of low value if there is a fall in market value, so users must take note of this.
Let us talk about the following;
• Depositing in Cryptocurrency
• Purchasing with Cryptocurrency
• Security against crypto Hacking
Depositing in Cryptocurrency.
Users of these coins should be intimated on the dangers they’re likely to encounter before they go ahead to making any purchase of any currency. Scammers are all around the Internet to dupe and scam online users of their money.
Some of the things to be aware of are;
No guarantee of continuous profit.
In this digital currency, there is no key assurance of continuous influx of income. Anyone assuring you of income is likely going to scam you of your money. That a renown personality has partnered with a crypto company does not make it safe and risk free. So beware and be guided.
Difference in companies
There’s no one company in the cryptocurrency world. Many companies engage in this platform.
Users must make reviews on a company before investing with them. They must get comments from others investors before investing their money.
Invest what you can afford to lose
Cryptocurrency users should only invest what they can afford to lose seeing the risks attached to cryptocurrency investments. It is like a gamble. It is not risk free.
Now that we have discussed the dangers and have been made aware of how to stay free from fraudsters, let us talk about;
Purchasing with Cryptocurrency.
Some cryptocurrencies, including Bitcoin, Ethereum, Litecoin,etc can be purchased with U.S. dollars, and other local currencies.
To buy cryptocurrencies, the you must have an online crypto wallet or an online app that is capable of keeping your currency. Basically, you will have to create an account with any Cryptocurrency company to get a crypto wallet, thereafter, you can send money from your local bank to fund your crypto wallet.
Here are the steps involved in purchasing Cryptocurrency;
Step 1: Sign Up with an Exchanger
Signing up for a cryptocurrency exchange will help you to buy, sell, and store your crypto. It is generally good to sign up with a company that will allow you withdraw your cryptocurrency to your own wallet for safe keeping. Some exchanges platforms that do not allow this option. For those looking to consistently trade cryptocurrencies, this feature will not be a problem.
There are some exchanges that are prominent. Some exchanges do not expose user’s identity and do not require users to provide personal information. Companies that allow this operate autonomously and are typically decentralized which means there is no central point of control. In other words, there is no CEO and no person or group for any regulatory body to pursue should it have concerns over illegal activity taking place.
The most commonly used type of exchanges are not decentralized. These exchanges include Coinbase, Quidax, Roqqu, Binance etc.
A key thing to note when creating a cryptocurrency exchange account is to use practices that will secure your account from fraudsters. This includes using two-factor authentication and using a password that is unique and long, including a combination of lowercase letters, uppercase letters, special characters, and numbers.
Step 2: Link Your Exchange to a Payment Option
After signing up with an exchange, you now need to link your personal documents. These may include driver's license, national ID, and also information about your employer. The information depend on the location of the user and the laws governing the locality.
After providing your basic information, you will now link your payment option. With the above mentioned exchanges, you can link your bank account directly or you can link a debit or credit card. While using your credit card to purchase cryptocurrency, it should also be avoided due to the fluctuating nature that cryptocurrencies may encounter.
While Bitcoin is legal in some countries, some banks do not accept deposits to crypto-related sites or exchanges example in Nigerian banks. While most banks do allow these deposits, it would be helpful to check to ensure that your local bank allows deposits at your chosen exchange. Banks also charge fees before deposits are made.
Step 3: Make an Order
Once you have sign up with an exchange and linked a payment option you can now buy Bitcoin and other cryptocurrencies. Creating an account on an exchange is mainly what you need to do to be able to buy Bitcoin or other cryptocurrencies.
Security against crypto Hacking
Bitcoin and cryptocurrency wallets are places where you can store your digital funds more securely. Ensuring that your crypto is away from the exchange and in your personal wallet ensures that only you have access to your funds. It also gives you the ability to store funds away from an exchange and avoid the risk of your exchange getting hacked and losing your funds.