Are you a crypto newbie?
Are you a Crypto Newbie? To help you start I have written this article. Have a read.
Here are some questions that you probably have.
1. What is cryptocurrency?
2. How to buy Crypto?
3. How do I stay secure?
What is cryptocurrency?
Cryptocurrency is a type of payment that is used on the internet to buy goods and services. There are companies that have produced their own cryptocurrency and these cryptos’s are used to purchase their own goods and services. As the crypto space develops further it is becoming clear that people are now using Bitcoin and Ethereum to store some of their wealth – you could say the Digital Gold and Digital Silver of crypto.
Blockchain is the technology of cryptocurrencies. Blockchain technology is a decentralised technology. Decentralisation is the idea of taking power and authority from one source and sharing it with everyone spread across many computers that manages and records the transactions. The balances and the transactions are held by everyone across the network/internet. This Decentralisation is part of the appeal giving it total security.
How to buy Cryptocurrency’s?
To buy cryptocurrency you need a wallet. There are two main kinds, software/virtual or hardware.The hardware wallet is the most secure with the added cost of buying the hardware which is usually in the form of an electronic device. This device does not connect to the Internet, uses a random number generator to generate public and private keys, storing them in the device. If you were to store a large part of your wealth in crypto keeping it in a hardware wallet is the most secure. The blockchain technology itself is very secure. However, computers and phones and the internet can be insecure.
The software wallet comes in two main types, a wallet with a private key and a login and a wallet that just provides a login, the private key used is not yours.
The wallet that provides you with a private key/backup key is the most secure of the two. Backup keys usually are a 12-word key; the twelve-word private key also allows you to move your wallet to different wallet “holders” if needed. When going through a security protocol you are usually asked for example what is the 12th word and what is the 5th word of your backup key.
Once you have your wallet you can buy and sell crypto on a trading Exchange. Some of these exchanges have their own wallets but most will be compatible with your wallet.
All crypto transactions carry a fee.
How do I stay secure?
It pays to put a little effort into how you manage your cryptocurrency. Use a hardware wallet for large holdings. Hold small amounts in software/virtual wallets.
The blockchain technology itself is very secure. However, computers and phones and the internet as you know can be hacked. Secure these points of entry. It’s essential for anyone interested in owning cryptocurrency to learn about safe storage and the concepts of both hot and cold wallets.
2. Use 32+ digit passwords, password creator programs that create mix of letters and digits and also use a password manager such as lastpass.
3. Setup Two-Factor Authentication (2FA)
4. Install an Authenticator app on your phone.
5. Use a VPN – Virtual Private Network – I use the Windscribe VPN – click here to find out more.
What do I use?
I have installed an app called UPHOLD on my phone. The selling point of this app is that you can transact “Anything To Anything”. A scenario could be you brought BITCOIN and then swapped it for ETHEREUM then you swapped it for a fractional share of APPLE. I like this app because of the simplicity of the transaction, its very user friendly. I use this app to buy small amounts of small/new/unknown crypto, to see if they increase and as an investment. Swapping crypto’s is done very simply.
The wallet I use for storing some of my Bitcoin is with the company called BlockFi – this wallet earns you interest on your holdings. For the Bitcoin the interest earned is at 6% and that is paid in bitcoin too, so I am also increasing my bitcoin holdings at the same time. You can hold other crypto such as Ethereum with this wallet with various rates of interest. Please note with Blockfi the gas rate(transaction fee) for Ethereum is high and moving Ethereum from one wallet to Blockfi you may need to increase the gas rate, my suggestion is to buy the Ethereum within the app.
Please use my referral code for Blockfi: https://blockfi.com/?ref=24e01a47 – If you signup using my referral code and fund your account with at least $100 during the promotion period (current calendar month ending at 23:59:59 UTC on the last day of the month) then you will be eligible to receive a tiered bonus paid in BTC. To be eligible for the promotion, this must be your first ever deposit in the BlockFi Interest Account, and you must maintain a $25+ crypto balance through the 14th of the month at 23:59:59 UTC two and a half months from the month of eligibility in order to remain eligible. The higher the crypto balance the higher the tier bonus will be.
If you have any questions, please let me know in the comments below.
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