What are Cryptocurrencies and How to Trade Them?
Cryptocurrencies are basically digital money that are set up in a way that transactions made with cryptocurrencies cannot be tracked or interrupted. Considering that, unlike the common, paper money, cryptocurrencies are not very convenient to carry in your back pocket, there is a different way of figuring out who owns how many Bitcoins or any other cryptocurrency. This system is known as blockchains which are distributed ledgers which track each and every transaction.
TOP CRYPTOCURRENCY TRADING PLATFORMS AND EXCHANGES
Cryptocurrency Exchange And How To Use It
Obviously, just like with ‘real’ money, cryptocurrencies can be bought, sold or exchanged. The trend of trading cryptocurrencies such as Bitcoin has been steadily on the rise in the last couple of years, but it has really exploded in the last year. This is certainly not unexpected seeing that Bitcoin has had an extraordinary growth period in such a short period of time.
While it is undeniably true that cryptocurrencies are a part of our future and that investing and exchanging them can become a lucrative endeavor, it is also important to keep in mind that there are possible risks to this, as with any business. We encourage all our readers to tread lightly when they’re choosing their exchange or a broker, and to make sure that they gather all relevant information before proceeding with a plan of investment.
As their name gives away, cryptocurrency exchanges are places where people can exchange their ‘real’ money for cryptocurrencies, or vice versa. Also, you are able to exchange one type of cryptocurrency for another. There are already some countries like Japan, which have decided to regulate cryptocurrency exchanges so that the customers can be protected from a possible cryptocurrency scams.
One of the goals of this website is to provide readers and potential cryptocurrency users with valid and fresh information regarding the status and value not only of cryptocurrencies but also of their exchanges, brokers and wallets. As can be visible throughout CryptoDeviant, we aim to bring you only the premium, tested information that users can use to their advantage. Or information is available to users around the world, including those from South Africa, Other African countries but also those from the far East and West.
How to Store Cryptocurrencies
Unlike fiat currencies, you can’t exactly place cryptocurrencies in your back pocket and carry them around with you. How do you store them then? Well, although it might seem more complicated from the simple way we store our ‘real’ money, storing cryptocurrencies in not difficult at all.
Cryptocurrency wallets are the address where your cryptos are located. No one except for the owner of the wallet can make any changes to the amount of cryptos. No one can make a transaction from a specific location if they do not know the address. For this to work, every wallet has, not one, but two addresses that are used for either receiving or sending funds.the one where you receive your money is public and any one can see it, but the one from where you send your money is only known to you. It is very important to safekeep your private address.
There are a couple of types of e-wallets to choose from:
1. Online wallets are accessible from any mobile or other device you have. This makes this type of a wallet the prefered choice of most cryptocurrency owners, such as Trezor wallet.
2. Desktop wallet is only accessible from the device they are downloaded to. While perhaps being a bit impractical, desktop wallets do have the highest security level out of all e-wallets.
3. Mobile e-wallets can only be accessed via your phone. These wallets do not have a lot of storage available so most people choose to supplement with an additional online or desktop wallet.
4. Hardware wallets are different from all of the others by having the key to enter it, stored on a storage device like a USB. This also a great option for those wanting a high security levels.
As with any other type of trading or exchanges where potential financial gain can be made, there is a risk of encountering a scam product or a company. In order to minimise the risks that can happen when trading cryptocurrencies, make sure you have done your homework and have gained as much information as possible about the type of transaction you are doing and the legitimacy of the parties involved in the process.
Be careful to avoid those companies and brands that have aggressive business practices such as cold calling their clients. Reputable and registered companies are not going to call their clients – they have other means of communication and never pressure their clients into action of any kind.
Read broker and exchange reviews on the internet to gain insight from other users and be able to correctly detect which company you are trusting your funds with.