Cryptocurrency is widely regarded as the “currency of the future”, and hence multiple new investors are hoping to get their share of this pie. However, as lucrative as the world of crypto may seem, it can be very confusing for first-timers, and given below is a small yet comprehensive guide for crypto beginners.
What is cryptocurrency?
Cryptocurrencies came into being after the 2008 financial crisis as the masses began to question the legitimacy of printed paper currency by Central Banks all over the globe. In search of alternative payment modules for countries experiencing hyperinflation, Bitcoin emerged as a solution. Cryptocurrencies are decentralized and independent currencies that do not have any third-party intervention.
What are the benefits of using cryptocurrency?
Crypto currency eliminates the need for a third party during a transaction and allows users to make fast and cross-border transactions without having to worry about the hassle of country codes, IBANs and remittance taxes. Another benefit of cryptocurrency is that all transactions made in crypto such as Bitcoin to date can be tracked through a central ledge that is available on public domains. This limits the instances of fraudulent activity. In addition to that, crypto is a great way for users to make passive income on the side even if they aren’t actively trading.
How can you buy crypto currency?
Cryptocurrencies can be bought and sold on exchanges or crypto trading platforms. Users can buy cryptocurrencies, exchange one crypto currency for another, sell crypto currency in exchange for cash, and even buy small parts of expensive cryptocurrencies such as Bitcoin.
Since your first time trading cryptocurrency can be scary, experts recommend first-time traders use demo accounts for a month or two until they get the hang of it. Most exchanges feature demo modes or demo accounts for first-time users and even offer substantial credit for them to trade.
How should you choose a trading platform?
When choosing a trading platform or exchange, there are certain factors that you need to take into account which include paying attention to their customer service channels which should feature 24/7 support. You should also look at the platform’s reviews from past and current users.
The final factor you should be looking at would be the exchange platform’s fees as certain exchanges charge absurdly high fees. Platforms such as Swyftx charge a minimal trading fee of 0.6%, and since we have swyftx fees explained, the high transaction fees some of the other platforms charge simply don’t make sense.
Cryptocurrencies have transformed the way we do business and how we invest. Cross-border transactions have never been so easy, contactless payments are a reality and digital currency is the real deal. The global financial system is ready to witness an overhaul in how money works, and decentralized cryptocurrency is just the beginning of it.
At its onset, people who believed in Bitcoin are now millionaires, and the sooner everyone begins to accept and not shy away from crypto, the sooner they achieve financial freedom and independence.