Cryptocurrency: A Beginner’s Guide

2 min

When it comes to online trading, the exchange of virtual currencies has now become a trend. In fact, its popularity has rapidly increased, that it is now widely accepted by many companies trading online, especially those located in the United States.

In this particular field, virtual currencies are typically called cryptocurrencies. These are digital currencies which are used for payment of certain products or good being offered by a company. Moreover, some companies also accept this as a mode of payment for the services they provide instead of real money or currency.

If you are new to this field, here are some tips to guide you on how to get cryptocurrencies, where you can buy them, and how you can avoid fraudulent entities online.

How to get cryptocurrencies?

In order for cryptocurrencies to have value, it will need real money as an exchange. To make it simple, cryptocurrencies are like tokens or chips in the casinos, where the value of the chips or tokens will depend on the amount you have exchanged. 

Thus, one of the methods you can do in order to get cryptocurrencies is to buy them. You have to keep in mind, though, that the value of cryptocurrencies is volatile. It typically fluctuates, which makes some people hesitant to make it as an investment.

Another method you can employ is to sell products online and tell your clients that you are accepting cryptocurrencies as payment. If you do not have any products to sell, you can provide the services that you know you have the capability to provide. 

The last method on how to get cryptocurrencies is to do mining. Mining is when you set powerful computers in order to process numerous transactions for everyone. Computers used for mining are usually very efficient, working with difficult and enormous sums. It is through this that the owners of the computer can get rewarded with cryptocurrencies such as bitcoin mining. Bitcoins are one of the most popular cryptocurrencies which are widely used and accepted online. 

Where to buy Cryptocurrencies?

If you choose to do the first method and decide to buy cryptocurrencies instead of selling goods or doing mining, you have several options to buy cryptocurrencies. One of which is the Initial Coin Offerings (ICO) companies. However, you have to be very careful when choosing which ICO company you will trust your money with. 

How to Avoid Fraudulent ICOs?

First tip is for you to do a background research about the ICO company or owner. An established and well-known company or owner is a good sign that it is legitimate. Another thing that you should look for when doing a background check is if there are major investors who have invested in such a company. Aside from this, knowing the company’s history and look for reviews from their previous clients. In addition to this, examine the currency that they offer. Is it an already developed currency and widely accepted by online users, or is it just starting to make itself known?

Moreover, it is also better if you will buy virtual currencies together with a stake in the company rather than just buying them in order to use them for your online transactions. Bear in mind that if you also buy a stake in that company, you become part-owner of that company. Thus, you can get to participate and have a share in the company earnings. 

Lastly, it is best if you use online trading tools when transacting on trading website. Read this before start using trading tools, it is very helpful especially for beginners. Even some who are already experts in online trading still use these tools in their online transactions. 

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