How do I start buying crypto? Tips on how to invest in digital currency

There’s a common misconception that buying cryptocurrency is risky and even dangerous. This market is indeed highly volatile but, in fact, cryptocurrency is an alternative to fiat currency to make financial transactions more secure. 

CoinCasso is a platform for crypto exchange with more than 3 years of experience on the market. We’re a fully licensed and registered company in Lithuania headquartered in London, UK. In this article, we’re explaining in simple words where you can buy cryptocurrency, and what crypto is.

What is crypto

The definition of crypto states that it’s a digital currency that is not managed or protected by any official authorities. In other words, most crypto coins were designed to be decentralized. One can buy/sell cryptocurrency, as well as transfer and trade these digital assets. Crypto is built on blockchain, which functions as a ledger that ensures safe storage for all the information and crypto transactions details. Different types of cryptocurrencies are called coins like Bitcoin, Ethereum, Solana, etc.

Basic crypto terms:

• Altcoins

Shortened from “alternative coins” – all the other cryptocurrencies except from Bitcoin (the first known crypto). 

• Token

A cryptocurrency that does not have a native blockchain. For example, Ethereum is an altcoin, but Tether is a token because it’s built on Ethereum’s blockchain. Tether does not have its blockchain. 

• NFT
  

Non-fungible token. Just like other cryptocurrencies, these are digital assets, but unique ones. There are no two same NFTs in the world. What can be an NFT? Basically, anything in digital format, like a picture, a song, a GIF, etc. Usually, NFTs are bought and sold for coins. If you invest in any NFT, you become its only one owner.

• Cryptocurrency wallet

A device or software to hold digital currency and all the related information. Two main types are cold and hot wallets. In the first one, your private key is encrypted offline. In the second one – a key is generated on the gadgets connected to the Internet. Hot wallets have stable Internet connection and are more common, while cold ones are more difficult to manage. At the same time, they are more resistant to hacker attacks because of no Internet connection. 

Another group of crypto wallets is mobile ones. You will need a smartphone and the Internet connection to access them. Mobile wallets are probably the handiest ones because a smartphone is always with you. Thus, you can buy and sell coins anytime, anywhere. The downside here is that a smartphone can be easily stolen and all your data, including your crypto wallet and your cryptocurrency, can be compromised.

For more information on cryptocurrency wallets, check our blog post here. 

How safe is crypto

It’s the first and the most important question all crypto beginners ask themselves. First of all, it’s necessary to mention that the cryptocurrency market is changing every minute and coins can go up or down in price anytime. You can either lose all the money or earn a huge profit. Nevertheless, with a profound understanding of the crypto market and tendencies, the chances of making a fortune are pretty high. 

Multiple factors influence cryptocurrency price fluctuations, including world politics and even changes in any large international companies or incorporations. For instance, in June 2021, Elon Musk announced that Tesla won’t be accepting Bitcoin as a payment option anymore because of its heavy energy use. This one seemingly innocent tweet resulted in this coin’s price drop by around 15%. This is one of the best examples of how volatile cryptocurrency is.

Secondly, cryptocurrency raises serious concerns regarding frauds and scams. Tokens are built with the help of blockchain technology, which makes crypto exchange fast and easy. However, cryptocurrency is a decentralized money alternative, which makes it also more unprotected. Crypto transactions cannot be reversed and, once you send any coins, it’s impossible to get them back. That is why the cryptocurrency is appealing to scammers. 

With an ever-increasing interest for tokens, more and more providers appear on the market with their crypto exchange platforms and coins. Some of them look totally reliable and have some generous offers coupled with low fees. Nevertheless, it’s better to go for well-known and trustworthy cryptocurrency platforms, especially if you’re only starting with crypto investments.

2FA for crypto exchange

Are there any ways to buy and sell crypto safely? One of the security measures is 2FA (two-factor authentication). It gets its name from 2-level protection and has been adopted for most cryptocurrency wallets. The first level is when you open a wallet. For example, a password or fingerprint is required for a mobile crypto application. The second level is when you need to enter a code sent via a text message to your phone number or email, etc. To put it simply, two codes will be needed to log into your account, which makes it a more troublesome task for scammers. Most reliable and trustworthy crypto exchanges have 2FA in their applications and websites.

In CoinCasso, we also use 2FA authentication. You can set it up right from your account on our website. We’re using Google Authenticator app to secure your data and coins.  In such a way, we make sure that your account and all crypto wallets have 2-level protection.

For more information on how to do crypto trading securely, watch our explanatory video on YouTube.

How to buy cryptocurrency with CoinCasso

CoinCasso crypto exchange platform is easy to use and functional for both a crypto newbie and a more experienced investor. With us you can hold cryptocurrency, buy and sell coins, and even play LongShort game. We’re the platform that supports Ethereum, Bitcoin, Tether, Serum, Swipe, and many other cryptocurrencies. You can also purchase our native token – CCX. 

After registering and verifying your account, there are two options to buy/sell crypto. The first one is to create orders – you can set up timing and pricing to make a purchase or sell your coins when the rates will be the most beneficial for you. The second option is to do a Swap – here you can do instant cryptocurrency exchange. To choose one of these functions, select the necessary tab in the menu on the left in your account.

Final tips on how to invest in crypto

Cryptocurrency is definitely one of those huge trends worth looking into. If you decide to buy and sell crypto, keep in mind that it’s not a risk-free adventure and yet, one can make lots of money with smart and well-thought-out investments in coins. Blockchain technology, coupled with 2FA, makes purchasing and exchanging coins more secure and reliable. The best piece of advice is to do thorough research of what crypto to buy and platforms where you can trade a desired cryptocurrency. In particular, you can find out more on the list of cryptocurrencies supported, deposit options (bank transfers, debit or credit card top ups, etc.), an exchange rate, and fees.

Disclaimer: Cryptocurrency trading can involve high risk and may not be suitable for every investor. Before deciding to trade cryptocurrency, you should carefully consider your investment objectives, level of experience, and risk. You can make money from trading, but there is also the risk that you may lose some or all of your initial investment. Therefore, never invest money that you cannot afford to lose.