Crypto for newbiesCryptocurrency

Important Tips For Investing in Cryptocurrency (2 Minutes)

Hi, I’m Kome and I’m a crypto newbie. Join me every Thursday when I write about cryptocurrency, the blockchain, NFTs, gaming, digital environments, and lots more! No jargon or bullshit. 

Important Tips For Investing in Cryptocurrency 

Welcome to another episode on Crypto for Newbies. In our last episode, we told you the advantages & disadvantages of investing in cryptocurrency. In this episode, we’ll share vital tips for investing in cryptocurrency. 

Our last 3 episodes have been about various aspects of investing in cryptocurrency and the things you’ll need to get started. This episode will tie all of that together and, hopefully, get you started on your journey to investing in cryptocurrencies.

1. Select an exchange to purchase cryptocurrency

One of the drawbacks of purchasing cryptocurrencies is that they are not available in traditional banking institutions. Banks and financial brokerage businesses do not provide them. 

To buy, hold, and sell cryptocurrencies, you’d need a cryptocurrency exchange. Learn about the Top 3 Cryptocurrency Exchanges and see which might be right for you. 

2. Store your cryptocurrency

The most common way to store your crypto is in a cryptocurrency wallet. There are many cryptocurrency wallets today.

A cryptocurrency wallet is a piece of software that contains your private and public keys, allowing you to connect to the blockchain where your bitcoin is stored.  

Wallets don’t keep your cryptocurrency; instead, they allow you to access it on the blockchain using your public key (the “cryptocurrency address” that the other party sees) and private key (known only to you). To execute a transaction, you must have both keys.  

A digital wallet not only allows you to access, send, and receive cryptocurrencies but also keeps track of transactions on the blockchain and displays your current balance. 

investing in cryptocurrency
cryptocurrency bitcoin golden coin isolated in white background

You need a wallet for investing in cryptocurrency

Types of cryptocurrency wallets 

1. Desktop wallets are software that you install on your PC. The information is safer than with online wallets because it is stored on your own computer. 

2. Online wallets are cloud-based and accessible from any computer. They’re easier to use, but your private key is held and controlled by a third party online. They become less safe as a result of this. 

3. The mobile phone wallet is an app on your smart smartphone. They can be used to make purchases in places that accept a variety of cryptocurrencies. 

4. Metal wallets store your private key on a physical device, such as a USB drive. Because the private key isn’t stored online, where it could be viewed by unwanted people, they’re more secure. They also allow you to access your cryptocurrencies from a variety of different devices. 

Bottom line

The digital wallet you choose will be determined by your desire for a secure and convenient solution. Some bitcoin exchanges now provide digital wallets where you may store your coins. 

 

Follow Naija.fm on our social media handles FacebookInstagram, and Twitter to keep up with trending news, breaking news, entertainment news. 

The information provided in this article is intended for learning purposes and should not be regarded as financial advice. Naija.FM shall not be held accountable for any losses incurred from trades or investments gone wrong. We make no guarantees or assurances about the accuracy or timeliness of the information provided here. As each individual’s circumstances are unique, you should always consult your financial advisor for professional assistance before making a financial decision. 

Show More

Related Articles

Back to top button