You might have heard the term “BitCoin” several times and might have even thought of investing in it. But there are several barriers in getting started with cryptocurrency, and the most basic one is the search for a reliable exchange dedicated server. Still, the longer time you spend on finding the right one, the more significant benefits you reap in the long run.
What Is Cryptocurrency? Where Did It Begin?
For some beginners, even the term ‘cryptocurrency itself might seem foreign and hard to grasp. Cryptocurrency is defined as a virtual currency managed through advanced encryption technology of ‘cryptology.’
The history of cryptocurrency begins in 2009 with the introduction of BitCoin. Cryptocurrency before this was just a concept and was hardly accepted to come into reality. However, today the crypto market values more than 300 billion dollars.
How to Begin Investing in Cryptocurrency?
Every new virtual beginning requires a good setup. In the cryptocurrency world, it means having a PC, laptop or mobile, whatever floats your boat, but we would recommend something more powerful if you were to leap over to crypto mining.
A PC, laptop, or a large screen is an essential element of your setup if you purchase and sell currency. This will allow you to view and analyze the graphs easily. However, keep in mind that no matter how large of a screen you have, if your purchase and selling time acquires latency, then the whole system fails. This is where a reliable exchange dedicated server comes in handy.
Once your setup is ready, you can begin deciding what portion of your portfolio you are willing to invest into the cryptocurrency. We always suggest keeping this margin small since the crypto market can be very unpredictable. And when you are deciding on the portion of your portfolio to ‘invest,’ keep in mind that cryptocurrency was never meant to be an investment option like real estate or stocks.
Choose the right cryptocurrency. It might seem like no rocket science, many would try to invest in BitCoins, but since its launch in 2009, there are several more promising and affordable options to choose from. After the purchase comes the storage of cryptocurrency.
Storing your Cryptocurrency
To store your cryptocurrency, you have two wallet options, a hot or a cold one. A cryptocurrency wallet is basically software that holds the key to blockchains where your cryptocurrency is stored. These wallets don’t save your currency. Instead, they keep ‘keys’ that store the cryptocurrency address, allowing you to access your currency in the blockchain. There are several types of wallet to choose from amongst these are:
1. Online wallets
These are cloud-based wallets that allow you to access your currency anytime, anywhere. However, it is less secure than other options.
2. Desktop wallets
These are installed on your desktop; hence they are only accessible to you. But there are is a chance of data being stolen if malware makes its way onto your system.
3. Mobile wallets
As the name suggests, these wallets are found on your mobile in an app. The only real threat to your currency, in this case, is your device being stolen.