Do you think that entering the crypto market takes a lot of steps? Probably this is a common thought about it. That’s why Bankomia wants to give you a simple guide of five steps to enter the world of crypto.
1. Set your crypto goal: Investment or trading
Cryptos could be a profitable option if you have savings to invest, and you are thinking about how to do it. The first step is defining what you are looking to accomplish: long-term or short-term goals.
Suppose your purpose is to invest across time and focus on harvesting fruits later, in a long-term period. In that case, your role is being an investor that holds your cryptos waiting for the moment when its price is getting high to exchanges or sell them.
If your goal is to trade assets regularly to gain earnings in the short term, your role is a trader. It is about applying trading strategies to know when is the perfect moment to buy and sell your cryptos to obtain profit from the difference between the open and close time of the market. After that, repeat the movement over and over to capitalize on short-term trends.
If you are new in the crypto scene, a wide range of unfamiliar terms might be confusing. If that’s the case, we suggest visiting Investopedia. It is an online dictionary that gives the sense of thousands of financial concepts into a context. It could be a useful tool to go deeply about investment and trading ideas.
Have you read our Bankomia blog? We are continually researching, analyzing, and writing about the crypto advances, updates, and controversial news to bring you relevant articles where you could find friendly education tools to grasp it in simple words.
2. Research about cryptocurrencies to know their features
We could say it is trendy to create new cryptocurrencies from any corner of the world, according to the figures showing in Coinmarketcap about the recently added cryptos.
We recommend these sources to start checking the news, data, events, and critical points about cryptocurrencies:
- CoinDesk, the media platform where you can explore how cryptocurrencies and digital assets are contributing to the evolution of the global financial system | www.coindesk.com
- CoinMarketCap Blog, where you can find the latest insights and tools to help you navigate the crypto space better | blog.coinmarketcap.com
Cointelegraph, the leading independent digital media resource covering a wide range of news on blockchain technology, crypto assets, and emerging fintech trends | www.cointelegraph.com
Bankomia currently supports the most popular and commonly used cryptocurrencies, such as Bitcoin, Dash, Ethereum, and Litecoin. We continuously update the list of these supported cryptos.
3. Search about crypto exchanges
According to Investopedia, an exchange is a marketplace where people can trade their financial instruments. It provides a platform for companies, governments, and business groups to sell assets.
Some exchanges have different options to trade between cryptos, fiat currencies, and bring compatibility with traditional banks. Exchanges provide the system to buy and sell your cryptos.
In our opinion, these are the elements that you need to check regarding an Exchange option:
- Know about which cryptocurrencies are available for trading
- Check the functionality of being compatible with traditional banks in your country.
- Read about fees per operation.
- Compare user experience and services, and the level of intuitive of its interface.
Bankomia provides a wallet service where you can deposit and withdraw your cryptos. Thanks to our Exchange service, you can freely exchange between fiat and crypto. All transactions can be sorted, viewed, or exported as statements to any legal authority.
4. Learn how to store your digital currency
Once you have covered the exchange step, you will have to think about opening your digital wallet (or e-wallet). It is a financial account store where crypto funds make transactions and track payments records from a digital device.
Digital wallets are available from the company website, and some of them are available on mobile apps too. They can also be included in the bank’s channels and payments platform as PayPal.
These are three elements that we recommend you to take into account for opening an e-wallet:
Blockchain stores your funds, and the online wallet only functions as a means of access.
Always download cryptocurrency wallet software only from official sources/websites.
Be careful not to mix these public addresses, as this can result in a suspended transaction or monetary loss.
At Bankomia, we bring you an e-wallet where you can securely store, send, and receive your crypto.
5. Check government regulations regarding cryptos
Nowadays, authorities must grapple with crypto regulations to determine their laws and policies. As a crypto-user, it is crucial to look into the country’s rules, management, and taxes for using crypto instead of fiat currencies.
The Library of Congress website posted a complete report of Regulation of Cryptocurrency Around the World. There you can check 130 countries’ regulations to have a point to start about the legal and policy landscape around cryptos.
The Library of Congress is the largest web-library in the world, and it is the main research arm of the USA Congress.
Another face of this regulation issue is checking license and fees banks, exchanges, and wallets options available in the market. It is relevant to review the license to operate each type of service and the competitive fees per transaction, maintenance, and system process.
You can check our fees before a transaction, and you can always follow your transaction record from your account. That’s another reason why Bankomia is the easiest place to buy, sell, and manage your cryptocurrency portfolio.
In conclusion, the only way to get familiar with this crypto world is to start taking action. We suggest doing your research according to your particular interest and needs. An informed decision will always be the best. Just remember to check trusted resources for valuable information and data. Are you ready to dive in?