The term crypto trading generally refers to the exchange of one crypto for another. It means the exchange, buying and selling of various cryptocurrencies. The idea behind crypto trading according to many sources is gotten from the 24-hour trading of financial instruments like shares and stocks on the foreign exchange market. Since the launch of cryptocurrencies in 2008, the crypto market has been flooded with various platforms and it is recorded that there are over 1,500 cryptocurrencies in the world. You will find it interesting to know that you can buy these digital tokens without having to mine. Mining on the other hand refers to the solving of complex mathematical puzzles and verifying blocks and transactions on crypto networks for rewards.
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How To Buy Cryptos
To buy cryptos, you have to go through an exchange. An exchange is a platform that was built for the exchange, conversion, selling and buying of various crypto tokens. Generally, there are two main types of exchanges, the centralized and the decentralized exchange. Some of the examples of centralized exchanges include; Coinbase, Kraken, OKEx, Huobi etc. While choosing a cryptocurrency exchange, it is important that you choose a secure one this is to ensure that your funds are not stolen or lost to either cyber-attacks or other attacks. The decentralized exchanges, on the other hand, eliminates any form of middle men and they include; Bitshares, Cryptobridge, DEX etc. One of the main selling points of these decentralized exchanges is that they focus on security as well as the anonymity of the transaction of users on their network.
To buy cryptos, you have to choose a reputable exchange, then list the amount of digital tokens you seek to buy and pay through any of the payment methods that is most convenient to you.
Where Should You Store Your Purchased Cryptos
As mentioned earlier, storing cryptocurrencies on centralized exchanges is one of the top mistakes crypto traders can make. Most exchanges in the last couple of years have been hacked and all or most of the tokens on them have been stolen. Some of the largest exchange hacks include the Mt. Gox dual hack, the CoinCheck hack that happened earlier this year and a long list of others. It is advised that you store your purchased cryptos in a digital wallet. There are different types of wallets you can choose from, but the most secure happens to be the hardware wallet. This is because they store private keys offline. Hardware wallets like the Nano S Ledger and the Trezor have proven to be reputable.
What You Should Look Out For When Purchasing Cryptos
Since the inception of cryptocurrencies, only a few have proven to show greater future potentials. The leading cryptocurrency Bitcoin, Ethereum, Litecoin, Ripple etc are a few of the top coins. When choosing a crypto to buy, you have to look for one that has great potential. To do this, you have to stay abreast with crypto market charts and prices. Also, read experts predictions regularly.