“Cryptocurrency is a digitally created currency based on advanced mathematical algorithms that use cryptography for security and anti-counterfeiting measures.”
Cryptocurrency cannot be physically seen or traded physically
like the FIATs but digitally or electronically, It is a decentralized system which
means it is not controlled by anyone. There are thousands of cryptocurrencies,
but the most popular, valuable and first of all is Bitcoin(BTC) followed by
Ethereum(ETH) and Ripple(XRP).
To
acquire or own cryptocurrencies you need to convert your FIATSs to cryptocurrencies.
As
a beginner we can’t just up into trading cryptocurrencies, 3 Things are Needed to Trade Cryptocurrency which are:
1. Trading Skills: Jumping into something or trade without a comprehensive or good knowledge is a foul play and a death trap. You need to have a full or comprehensive understanding of what you are doing and how to do it, same applies here, you need to understand how cryptocurrency works, risks associated, where to buy and sell, when to buy and sell, what to buy and sell and how to carry out your trading analysis. In developing these trading skills most times you will need a mentor, someone you can learn directly from online or offline, or you can watch tutorials online (but this method of knowledge acquisition is not advisable, because you tend to meet different people with different strategies which may leave you confused and stressed). It is advisable to find a mentor, pay for his/her services and be ready and well-prepared to learn, because honestly, crypto trading is not easy to trade until you have the good and necessary skills. For Recommendation: I recommend you learn from Chris Ani and take his “Trade and Make Money Course”.
2. Wallet & Exchange: Wallet is a
place you keep/store your Cryptocurrency. It may be a
- Cold wallet (paper or ledger): This wallet is an
offline wallet that doesn’t really need the internet to operate. And it is the safest,
but it is very complicated. It can’t be hacked and it is not advisable for beginners
because of its complexity.
- Hot Wallets (Mobile, Web, or Desktop): This wallet is an online-based wallet that you can access on your phone, as a website, or as software on your desktop through the internet. It is not as safe as the cold wallet, but very simple to operated, and it is advisable for beginners to use. Examples are binance, coinbase, yellowcard, blockchain, luno e.t.c.
Exchange is a platform where trading(buying and selling occur). Most time it is easy and advisable to buy and sell cryptocurrency on the same platform because most wallets have an exchange section, or you can transfer crypto from your wallets to the exchange platform.
