Buying your first cryptocurrency – NEYCO
There are more than 2600 cryptocurrencies, and that number keeps growing. Buying your first cryptocurrency is an exciting experience that opens many opportunities. It can also be overwhelming when you do this for the first time and have to figure it out all. We created a short guide to take you through the steps and show you how smooth and easy that is.
If you would like to buy crypto as a long-term investment, then we suggest you start with Bitcoin. Bitcoin is the number one cryptocurrency and has the lowest volatility and risk out of all coins on the market. Owning Bitcoin also inspires you to learn more about the other cryptocurrencies and start growing your portfolio.
You don’t need to buy one whole Bitcoin. Bitcoin has 8 decimals (called Satoshis) and that allows you to buy fractions of it. You can buy as little as $10.
Bitcoin is the first cryptocurrency, created by Satoshi Nakamoto in 2009. We recommend you read the original Whitepaper to learn more about its core philosophy.
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
Any cryptocurrency that’s NOT Bitcoin is called an altcoin. This doesn’t mean that one is necessarily better or worse than the other. Altcoins are “alternative coins” that aim to solve different problems in their unique way. The most famous altcoin is Ethereum — a cryptocurrency and an open-source platform that allows anyone to build applications on top of it. The majority of altcoins on the market are built on Ethereum. There are also other such platforms like Neo, Cardano, or EOS.
Even when there are thousands of altcoins, Bitcoin still has the highest market dominance of all which hovers between 50% to 70%. This is why when Bitcoin goes up or down, many altcoins follow. Altcoins, however, have higher volatility which can give you more significant profits or losses.
There are three types of cryptocurrency exchanges:
- Centralised — where a trusted authority manages the exchange and stores your money, much like a financial institution
- Decentralised — where there is no trusted authority and transactions are executed directly between buyers and sellers
- Hybrid — the next generation of cryptocurrency exchanges that combine the benefits of centralised and decentralised
Neyco is a hybrid exchange that is managed by a central authority and offers peer-to-peer trading (directly between buyers and sellers).
Decentralised exchanges won’t ask you to create a profile and verify your identity. This also means that you need a more in-depth technical knowledge to set up your wallet and connect it to the exchange. It can be a very overwhelming task if you’re just getting started with crypto.
Neyco is an exchange for traders of all levels. As a beginner, all you have to do is use the simple Exchange functionality where you can buy Bitcoin instantly and with a few clicks.
All you have to do is sign up, go through a simple verification process, deposit your money, and place a buy order. If you can buy products online, then you have all the knowledge to buy Bitcoin.
You can choose to sell at the current market price, which means that your order is executed immediately. You can also set a price limit (typically a higher price) and let the system execute your order automatically when that price is reached.
Now that you have Bitcoin, you have to store it in a wallet. All exchanges have wallets, but not all have the same level of security. The most secure wallets are the so-called “cold wallets” that store your crypto offline.
The most popular cold wallets are Ledger and Trezor. These are pocket-sized hardware devices that you connect to your computer to transfer your crypto. The problem with hardware wallets is that you can lose them, although there are recovery options.
Neyco exchange can also store your crypto in a cold wallet so that you won’t have to buy a separate hardware device and figure out how to use it or where to hide it in your home.
Hot wallets are wallets that you use online. If you use an exchange wallet, then you let the exchange manage your private key. This is not necessarily a bad thing. Exchange wallets provide more convenience and have a better user experience. To own your private key and have full control over your money, you have set up your desktop, mobile or web wallet. Note that you can’t store Ethereum or other altcoins in a Bitcoin wallet and vice versa. You also need to be careful not to send your cryptocurrency to a wallet address of a different kind. You may lose your funds if you accidentally send your Bitcoin to an Ethereum wallet. Soon, Neyco will launch our Wallet service that you can use in addition to our exchange wallet.
Now you have all the necessary knowledge that you need to get started with crypto and buy your first coin.
Published at Wed, 18 Sep 2019 09:53:24 +0000
Bitcoin Pic Of The Moment
✅ This image from Marco Verch (trendingtopics) is available under Creative Commons 2.0. Please link to the original photo and the license. 📝 License for use outside of the Creative Commons is available by request.
By trendingtopics on 2019-03-07 04:22:30
