Due to their characteristics and foundational values, cryptocurrencies can be quite difficult to oversee, secure, or otherwise regulate. In the context of the law, cryptocurrencies are an unprecedented issue, which is why not many countries have any specific legal guidelines concerning their usage and trade. Despite that, they are a very popular asset and an increasing amount of investors invest in various e-coins or tokens. But before you join the world of cryptography, you should take some time to prepare.
Cryptocurrency trade… where to start
Preparing for independent cryptocurrency trade should start with understanding the basic rules of the cryptomarket.
First of all, it is worth remembering that cryptocurrency exchanges are vastly different from their “classic” counterparts, like stock markets. Since the assets offered there are fully digital, their price cannot be calculated and is subject to constant speculations. That is why the main aspect that dictates the cost at which units of concrete cryptocurrencies are obtained isn’t always strictly tied to its functionality. For this reason, the market is very dynamic, able to change completely within minutes. That in order makes waiting for the market to “stabilize” before buying or selling futile.
Next, it is important to read up on the characteristics of the available e-coins, adjust the investment strategy accordingly, and then choose a cryptography wallet that will fit in with both of these aspects.
Investing in the cryptomarket divides into two main methods:
Short-term investing utilizes the dynamic changes in the market to perform quick transactions, usually at least one a day. Income from singular transactions usually isn’t spectacular, but after performing a few of them in a short time, they begin to sum up.
Long-term investing, on the other hand, requires a lot more time between transactions, storing units for weeks, or even months to let them gain more worth before selling. This strategy allows for avoiding losses caused by temporary dips, focusing instead on the rise of the average price of the cryptocurrency.
Along with these two strategies, we can also observe the division of crypto-wallets, special applications that serve to store crypto units, into two types: cold and hot.
Hot crypto-wallets are installed on devices with access to the internet, such as a telephone or a tablet. It allows for faster transfer of cryptocurrency, which is very important during short-term trade when every minute counts. Cold wallets, on the other hand, take the form of separate devices with no way to connect to the Internet. It makes them more secure by reducing the risk of a hacker attack but cryptocurrency transfer is, in turn, slower and less convenient. For this reason, they are usually recommended for people who invest long-term.
Finally, after selecting the cryptocurrency, a strategy, and an appropriate e-wallet, it is time to find a good platform to obtain and trade cryptocurrencies.
Where to buy and trade cryptocurrencies
One of the most popular ways to get and trade cryptocurrencies is using the crypto exchange. It is often even treated as the “default” option, but that doesn’t mean it has no downsides.
Cryptographic exchanges offer a wide variety of coins, tokens, and altcoins that the user can invest in. But this type of platform hides many dangers. First of all, the amount of units stored on the exchanges is very tempting for hackers and other internet thieves, who can attack the exchange and cause the loss worth many millions not only to the exchange owners but particularly to the users. Unfortunately, things like that had happened before, and finding the stolen units is nearly impossible.
It also became one of the main reasons why the legal requirement of identity verification for exchange users was introduced in the EU and the USA. This provoked an understandable resistance among the members of the cryptographic community, as protecting one’s identity is a very important aspect of cryptocurrencies.
The answer to the new demand, caused by new regulations turned out to be cryptocurrency cantors without registration.
Independent cryptocurrency trade?
Most cryptocurrency exchanges require identity verification for security reasons and because of the law regulations, which is why it’s hard to find an exchange that would be willing to resign from it. People who care about their privacy can be unwilling to use them in fear of losing their anonymity. Fortunately, whenever there’s demand, supply follows suit, which is why universal cryptography cantors took over this new niche, utilizing their inherent lower risk of becoming a target for hacker attacks. Independent crypto-cantors that dropped the option of setting up an account, quickly gained popularity by offering their clients the option to trade cryptocurrencies without registration. Instead of conducting the time-consuming verification process, which often consists of many steps, they focus on securing the transactions. Additionally, some of them also provide their users with tools that can protect them from overpaying by setting up a limit on the acceptable price rise. It acts as an “emergency brake”, stopping the transaction in the case of a sudden price spike. It’s important considering how dynamically can the cryptomarket change.
One of the crypto-cantors that offer such a tool is Crypto-ATM, a platform that boasts not only a wide range of available cryptocurrencies but also guarantees a fast exchange with minimal formalities and efficient customer support. Thanks to extensive safety precautions taken to secure the transactions, as well as cutting down on the information required to make an exchange, the user can buy units within minutes. It’s an excellent solution not only for users who care about their independence but also for beginners due to the easy process of obtaining cryptocurrency.
I have it… what now
There are two main trends in utilizing cryptocurrencies: using them directly and investing them.
People who plan on using crypto in accordance with their purpose should be aware of the concrete applications of the e-coin. For example, the potential user should see whether the concrete crypto is a coin, which serves as digital money, or tokens used within a concrete platform. It’s also worth to tailor them to the specific needs of the user. A token from a programming platform may not be very useful for, let’s say, a graphic designer and a large number of coins may not come in handy for someone who prefers to use cash.
Of course, there’s no one to say you can’t do both by using and investing at the same time. That way the user can double the profit, actively participating in the popularisation on the asset they invest in. Obviously, it requires more attention and experience in navigating the cryptomarket, but it is an interesting and not unusual strategy.
Although the legal situation of cryptocurrencies is a little complicated, countries where they are completely banned are very few. And so it only takes a little bit of time and self-motivation to join the group of people investing in the futuristic technology that are cryptocurrencies and their systems.