Buying digital currencies: The most important thing you should know is to buy and store currencies securely
During the early years of the inception of digital currencies, their use was still limited to a small group of users who possessed sufficient experience to know how to use and deal with them, but over time these currencies began to gain widespread popularity and became accessible by many, and with the announcement of PayPal On its support for the purchase of digital currencies, it is expected that its popularity will increase even more.
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Despite this, the purchase of digital currencies still seems difficult for some, as there are some common mistakes that some people may commit while trying to buy, in addition to the possibility that they will be exposed to fraud, given that some of the parties that sell are not licensed by any regulatory authorities, and in this The article We will try to simplify this process for the average user by showing the most important aspects that should be paid attention to when buying.
Research about available legislation in your country
While the purchase and circulation of digital currencies is widespread today, many countries still either do not allow this or do not allow these activities to be licensed, and in some other countries, buying digital currencies is still illegal, especially in the Arab region, and in case the government is not in Your location prohibits trading, because that is not enough of course, as it is better to have laws and legislation in place to manage the work of the parties that sell in order to protect the interests of users from fraudulent practices.
At the present time, and with the scarcity of licensed currency dealers in the Arab region, the best and safest option remains to choose a financial brokerage firm that is licensed by other regulatory bodies with a good reputation even if it is not Arab. Today, eToro is the most prominent example of this. It holds licenses from well-known regulatory bodies including the Cyprus Securities and Exchange Commission (CySEC) as well as the Financial Conduct Authority (FCA) in the UK as well.
Choose a digital wallet to store coins
Choosing a digital wallet is one of the steps that you should pay attention to in order to secure your currencies and protect yourself from the risks of hacking. Despite the fact that cryptocurrencies offer a high level of security in view of how they work and depend on blockchain and the use of encryption, hacking attacks usually focus on stealing digital wallet information, including In it is the private key that is used to send and receive payments.
Below we will mention the types of digital wallets and the differences between them in order to be able to choose what suits your needs and priorities:
Available on the web wallet: The wallet information is stored on the cloud so that it can be accessed from anywhere using a web browser on the phone and computer, and thus it is considered the simplest and easiest to use, but in return it is considered the least secure if hackers gain access to the cloud service that provides these wallets.
Digital wallet applications: provide a better level of security than web wallets, especially if they store information locally on the phone instead of the cloud, and they are more flexible and easy to use on the phone or computer with the availability of versions available as an add-on for browsers as well, and there are free and paid versions .
Hardware Wallets: A small electronic device that can be connected to a computer through a USB port, and it is considered one of the best types of wallets as it combines protection and ease of use, by storing wallet information, locking them and encrypting them with a password, so that it will remain protected even if it is done This wallet is stolen, but it is worth noting that its price may be high at times.
Paper wallets: It can be considered the simplest and easiest solution for storing digital currencies, and it is also the cheapest, as all you have to do is print the wallet information on paper and use it when needed to send or receive payments, but you have to store it in a safe place so that no one can steal its information.
Determine the currencies to be purchased and their target
In the beginning and before embarking on the purchase of digital currencies, it is important to define your goal and purpose precisely from that, as currencies differ greatly among themselves and their benefits vary according to what you want to do with them, so if you want to store your money to maintain its value as a long-term investment, it may be currencies like Bitcoin and Ethereum are the safer option today, but they also charge high transfer fees and take a long time that makes them unsuitable for permanent transfers.
User digital currencies may need not impose high fees and can be converted quickly for purchases, for example, where there has become a lot of sites, shops and various services that accept payment of digital currency, and if this is your destination, the currencies such as Ribble and Tther and the White Queen and Dash will be a better option here, and although there are currencies that may be more appropriate for this task, it is best to focus on reliable and widespread names to ensure that they are supported by the largest number of stores and services.
Available payment methods
If this is your first experience in this field, you should pay attention to the payment methods that are supported by companies before anything, as many trading platforms do not support the purchase of digital currencies except in exchange for other digital currencies, which is a problem for those who wish to buy using their local currency. He has no other right now. Fortunately, well-known brokerage firms support buying with traditional money, so they are considered the best option for newcomers in this field.
After confirming that you have the option to buy with traditional money, it remains for you to research whether the supported payment methods suit you, which may include payment services such as PayPal and credit cards such as Visa in addition to bank transfers, which are more complicated and take some additional time.
Purchase fee
At the outset, it should be noted that these purchase fees differ from the transfer transaction fees, as the transfer transaction fees are imposed by miners who process the transaction on the currency's blockchain platform, when the same currency needs to be sent from one person to another, but the purchase fees are related By making the purchase directly from the trading platform or brokerage firm and has no direct relationship to the blockchain platform.
These purchase fees vary widely, and are usually high when choosing one of the payment methods through traditional currencies such as credit cards, so it is important to check these fees in the beginning and compare them between each platform to estimate the most suitable for you.