We discuss the basics of how to buy and sell crypto currencies. Like anything in life one simply does not just start buying or selling an asset without knowing what you are purchasing. It is important to avoid getting caught up in the FOMO (fear of missing out) syndrome. This is when many people see an opportunity for an asset to grow in value and jump on the bandwagon. With this in mind, let’s take a look at some basic considerations when buying your first crypto-currency.
Before starting, it is inadvisable to buy any crypto-currency without first understanding what they are. So the first step before buying crypto-currencies is to learn about the space. Read about and understand the basics of what crypto-currencies are, learn how blockchain technology works and what exactly are Bitcoin and Etherium and a whole bandwagon of cryptocurrencies are. Take your time and familiarize yourself with the industry and the technology behind it.
The next step is to open an account at a crypto-currency exchange, like Coinbase or Kraken. Once your account is set up, deposit some money by connecting your bank account to the exchange you have decided to go with. At this point you have funded your account. If it is your first time buying, don’t start too big and never buy more than you can afford to lose.
First time buyers should probably start by purchasing the most popular crypto-currency, but these can often price themselves beyond most budgets. If you should decide to go with new projects, make sure that you study their entire scope. This is the time when an ICO (Initial Currency Offering) is a good option. Since this happens right at the beginning of the project, you should be using more diligence and also consider shopping for a couple of ICO projects.
Some people dream of becoming rich after their first crypto-currency investment but, that’s simply not the case. Remember, that it is important to develop a process and strategy depending on how risk adverse you are and how much money you have to invest. Rules and laws related to crypto currencies are in their infancy, you need to rely on your own assessment.
The objective is to continue doing research and educating yourself on the other crypto-currencies available. Investigate why certain crypto-currencies exist and what problems they are looking to resolve. Learn more about their management teams, who is on their boards and what their development plan is. Analyze what problem the crypto-currency is looking to resolve by reading their white paper. Find out the rationale of why you should put your money into that particular crypto coin and understand the space.
Next check out the website and online community of the crypto coin you are looking to purchase. Send them an email, checkout their Facebook page or group, join a good crypto-currency club online or see what people are saying about them on Reddit. There are many available resources, so join the online community and examine what the utility coin is attempting to accomplish.
Buying a crypto currency, can mean using conventional currency and making a purchase through an exchange. In most cases, you could actually convert some of your existing crypto coins to another crypto currency. Build up your crypto portfolio, one step at a time. And as you move ahead, make sure that you keep learning more about these amazing and often tempting, financial innovations.
GLITZKOIN: With crypto currencies taking a firm foothold in the financial world, this is indeed the right time take your first steps. Without indulging in hyper sales talk, we would suggest you review the GLITZKOIN white paper and consider buying a few crypto coins. Backed by a talented team, the project is geared to revolutionize the diamond industry. A blockchain based diamond trading platform and a crypto currency, are some of the project highlights.