With the way cryptocurrencies took a forcible hold on most of the world last year, here are some tips for beginners to keep in mind before investing.
After the value of a single Bitcoin virtually went up 800% last year alone, many are starting to wonder whether the cryptocurrency trend will have longevity. Now that Bitcoin has just started to make its descent in the market, there are other cryptocurrencies like Ethereum and Ripple popping up and vying to take its place.
Below are some tips for beginners who are thinking about investing in cryptocurrencies for the first time;
- Use a high volume exchange.
- US-based Coinbase is by far the most known (and used) crypto-exchange. Signing up for an account is free, and you will be asked to secure and validate your identity and/or link bank accounts. This is a place to store purchases and convert local currency in and out of Bitcoin.
2. Find a secure wallet.
- There are many digital wallets that can increase the security of your virtual coins, and it is important to keep bitcoins online in wallets that you control. Hardware wallets like Trezor and Ledger Nano S have been dubbed some of the safer wallets, with a straightforward setup and a $100 or less cost to open.
3. Buy at your own risk.
- With the age of cryptocurrencies among us, so too come hackers, phishing scams and serious security threats. Securing your investment should be your top priority. Using a password manager, two-factor authentification or enhanced security protocols for your email address are smart ways to increase the security of your wallet.
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