Cryptocurrency offers a world of opportunities but also comes with a myriad of questions. Understanding these answers will help broaden your mind to learning and seeing the possibilities of the potential of blockchain technology.
Here are a few key things to be aware of as you’re getting started:
You Need A Wallet
Before you start trading in cryptocurrency, you need to get a place to put your coins. A crypto wallet is a virtual storage space that allows you access to your digital currency.
Five types of wallets exist:
- Online wallets are web-based services that are usually automatically included when you sign up to an exchange website. Coinbase and Jaxx are examples of these. Although these are convenient, they may also be more easily hacked—which is why some people are interested in other alternatives.
- Desktop wallets are downloaded computer programs where crypto can be stored, often created by the developers of the specific token.
- Mobile wallets are app-based, downloaded and installed onto your mobile device. (Satochi, for example.)
- Hardware wallets are a piece of actual hardware resembling a USB device that can be plugged into any computer for access. (KeepKey is an example).
- Paper wallets are basically printed forms of your public and private keys (the keys allow you to access to your currency).
However, apps like Satochi, acts as your wallet and stores for you. It saves you the headache of figuring out what wallet to use.
You Often Need Cryptocurrency To Trade Cryptocurrency
Entry points into the cryptocurrency market are somewhat limited as few exchanges allow you to purchase digital currency by using domestic currency (such as US dollars). Because Bitcoin is the most common crypto at this point, it is the easiest currency to buy and sell. Hence many people opt to start in the crypto space with bitcoins.
An even easier way to keep yourself from worrying if you’re doing the right thing is to get in on the ground floor of a cryptocurrency trading service. In this case, organizations, such as Satochi, handle your investments for you by turning your dollars (or other currency) into crypto.
Crypto Is Regulation-Free
Centralized currency (like USD) comes with the backup of government regulations. Cryptocurrency has no governing authority, power is decentralized, and its value comes only from people’s willingness to purchase it. Overall, it’s very safe. But if you get swindled or your home computer gets hacked, there’s no one to appeal to.
It’s Not Cash Until You Trade It
In order to spend your cryptocurrency on ‘real world’ goods, you’ll eventually need to turn it into hard cash. A limited number of ATMs and credit cards are available for this purpose. Currently very few businesses accept crypto as a form of payment, but hopefully, that will change as the trend grows.
Crypto Can Be Risky
Just like any investment, an inherent amount of risk is what makes crypto profitable. If you can’t afford to lose money, you shouldn’t invest it or invest only what you’re willing to lose.
That’s why getting started with an app program like Satochi is a brilliant idea. This type of tool allows you to round up your change to the nearest dollar—and you won’t even notice it has left your bank account.
Through Satochi, using your pocket change is the perfect way to enter into the cryptocurrency market with little risk, but the possibility of amazing returns.
You Do Not Need A Lot Of Money To Get Started
Plenty of people think you need a lot of money to get started or they think it’s too late to enter the market.
But the reality is that you do not have to buy a whole lot of crypto. You can buy as little as $30 worth of Bitcoin and have a decimal value of one Bitcoin. Similarly, you can purchase one-fourth of an Ethereum. You can buy these cryptos on cryptocurrency exchanges available to the public, such as Coinbase, Binance, Poloniex, Bittrex, etc. All you need to do is register an account, connect your bank account, get verified, and you’re good to go.
In case of saving apps like Satochi, you don’t even need to do that. You can just link your credit/debit card and Satochi will round up your expenses and invest the spare change in crypto for you. So voila! Absolutely no work on your end. The app does everything.
We hope these tips gave you a better understanding of the crypto space to approach it in a more wisely manner,