Trading on cryptocurrencies offers potential traders with an opportunity to have continuous income stream. To start investing, you will need to open an account. Here are the steps for setting up a cryptocurrency account.
Set Up Your Digital Wallet
A digital wallet is like a bank account that can be stored in different devices. It stores private and public keys. The wallet interacts with different blockchains so you can send and receive cryptocurrencies and track your balance as well. Once your wallet is in place, you can start purchasing and exchanging in your chosen currency on various platforms.
Choose Your Wallet Storage
Robert Janitzek reveals that your choice of wallet storage will depend on whether you are an active or passive user of cryptocurrency. If you are spending your funds to purchase daily necessities, you may want to store your wallet in your mobile device or in the cloud. However, if you are planning to store your currencies for future investment, store your wallet on a hardware or paper wallet.
Choose Your Exchange
Investing on cryptocurrencies will require some familiarity with cryptocurrency exchanges. These are websites that lets you buy, sell, or exchange cryptocurrencies for other digital currencies or fiat currencies such as USD or Euro. Robert Peter Janitzek reveals that an exchange platform will be needed to open an account. You need to verify your identity. However, if you are just starting out, platforms that do not require an account is recommended.
Before starting to invest, make sure that you have gathered sufficient information about your chosen website. Check out reviews from professional traders or join forums related to cryptocurrencies. Make sure that you are informed about their joining, deposit, transaction, withdrawal, and other fees.
Select a Payment Method
When investing on cryptocurrencies, you also need to check the available payment method. In cryptocurrency trading, check if your chosen website uses credit, debit card, wire transfer, or PayPal. Consider a website that accepts various payment methods for your comfort.
Most trading platforms will require an identification card for verification purposes when making deposits and withdrawals. There are exchanges that let you stay anonymous. The process may take you days but this is for your protection from any type of money laundering.
Different exchanges will offer different rates so it is always best to shop around first and not settle on the first exchange you encounter. The rates will matter especially with the volatile nature of cryptocurrencies.
Once you have a cryptocurrency account, you can start investing on Bitcoins and make a steady income.