Getting started: buying and transferring cryptocurrencies
Getting started is always difficult, but that doesn’t mean we shouldn’t go any further. Also when it comes to cryptocurrencies, the beginnings are difficult, but the more articles we read, videos watched or the more we try to apply new knowledge in practice, the more confident we feel in the world of blockchain and digital currencies.
If you are here it means that you are just taking your first steps in the world of cryptocurrencies and looking for solutions that will allow you to operate efficiently and with all security measures. The knowledge you need is contained in a few simple steps. We will try to brighten them up and show you how to transfer cryptocurrencies smoothly after proper preparation.
Let’s start from the very beginning
Sending cryptocurrencies proves easy when you put in a bit of work to learn a few simple rules. Beginning may be a bit complicated, but if you learn the basic concepts and spend time researching the topic, everything may turn out to be easier than using your bank’s application.
You already know that the blockchain network is based on security, transparency and anonymity of data transmission and investing in cryptocurrencies has no yet restrictions imposed on all market participants by traditional financial units.
Creating cryptocurrency wallet
Your cryptocurrencies, right after their acquisition, are best stored in a digital cryptocurrency wallet. It is a bit like a bank account, but blockchain transactions are much faster and offer more opportunities. The most popular cryptocurrency wallets are Trust Wallet and Metamask.
Cryptocurrency wallet is protected by a long string of unique characters called private key. Do not show it to anyone! This key will be useful to restore the wallet, e.g. on a new device. When setting up a wallet, you will also receive a dozen or so words to remember or write in a secret place, the so-called seed. With seed you can also restore your wallet, and it is still easier to memorize than a private key.
The public key, which is simply the address of your wallet, is also unique and it is used to transfer cryptocurrencies. Remember that each cryptocurrency has its own address, even on the same wallet. This is due to the fact that each cryptocurrency has its own blockchain – i.e. the network in which it is sent.
You can also use the wallet address as a QR code ready to be scanned in the app. This will make it much easier to transfer your funds.
The wallet is your starting base. In addition to storing, sending and receiving cryptocurrencies, on some wallets you can transfer, exchange, buy and sell currencies, e.g. BTC, ETH, USDT, BNB. Cryptocurrencies, just like investment opportunities, are many, so it is worth taking a look at them before making the first transaction.
Types of cryptocurrency wallets
Cryptocurrency wallets basically fall into two major types. In addition towallets online or in the form of an application, the so-called hot, walletswe also have hardware wallets.
Hardware wallets, called cold wallets are the safest possible form of storing resources purchased on exchanges and in cryptocurrency exchange offices. Storing cryptocurrency on it consists in cutting it off from the Interner network and collecting data on a physical device similar to a USB flash drive. Wallets are types of external disk secured in a unique way – with the owner’s PIN or fingerprints.
There is one more, a bit more archaic way, namely storing a seed phrase or a private key in an analog record, e.g. on a piece of paper. A safe option as long as we are able to ensure that no unauthorized persons can access the piece of paper we store.
Remember! When buying a cryptocurrency on crypto exchange, do not leave it in the wallet of an exchange, especially if these are large funds. Transfer it to an external wallet and secure them properly.
How to buy your first cryptocurrency?
Choosing the stock exchange you want to trade on is very important. It is worth approaching the matter with a properly prepared person so that the decision made will bring you as much benefit as possible. Currently, you can choose from a large listthat is constantly growing, but for starters we recommend something from the top ten list on coinmarketcap. Especially at the very beginning, use tools of proven quality, which you know as much as possible and which are based on the work of professional teams.
Familiarize yourself with the exchange offer and choose the one that best suits your needs and inspires your trust. The options available on the market include, among others Binance.com, BitBay, Coinbaise, Kraken, Huobi and many more.
After making your choice, the first step is to register with the chosen exchange, familiarize yourself with its structure and carefully review the possibilities it offers you.
Activating your account on the stock exchange and buying your first cryptocurrency shouldn’t be too much of a problem for you. Follow the steps below:
- Registering on the exchange is no different initially than registering on any other platform. It is necessary to provide an e-mail address or telephone number to which the link / activation code of the account will be sent and password.
- The exchanges adhere to the European KYC regulations (Know Your Customer) and AML (Anti-Money Laundering), which means that each of them will want to confirm the manner indicated by you Your personal details and address.
Without KYC, you will not be able to withdraw funds on some exchanges.
Some exchanges do not require KYC up to a certain amount of funds transferred.
- Successful completion of the KYC verification means for you the opportunity to start financial activities – deposit and withdrawal of cryptocurrencies.
- Now you can enter the option to buy cryptocurrencies and use, for example, a credit card to make the selected transaction.
- Select the amount of cryptocurrency (or stablecoin) you want to buy / sell (it is also possible to exchange cryptocurrencies in the exchange office) and click the button confirming the transaction. At this point, a field will appear in which data confirmation will be required so that you can finally approve the transaction in the next step – this is the moment when the commission amount will also appear.
Note: transaction fees vary depending on the selected network.
- If everything is correct, and you accept the applicable fee, confirm theoperation. Everything looks quite similar to buying in anstore online.Your funds will appear in the exchange wallet after a while.
- After switching to the wallet, you will be able to check your balance in the selected cryptocurrency.
Remember: As long as your transactions on the blockchain network remain public, you as the wallet holder remain anonymous.
How to easily send a cryptocurrency from the stock exchange to the wallet?
Now it’s time to transfer the purchased funds to the wallet:
- In the exchange wallet, next to the purchased cryptocurrency, there is a “Withdraw” button – click it.
- In the next window, paste your unique wallet address (a unique alphanumeric string of letters and numbers) into the recipient’s address field. You can also use the QR code.
- Remember to choose the right transfer network on the exchange, it must be compatible with the cryptocurrency being sent and the address to which you are sending. For example, you upload Ethereum on the ERC20 network and only to a wallet address on the same network!
In some cases, you will also need a Memo ID – a unique account identifier needed for the correct posting of transactions – you will find it in your wallet (such an identifier will be necessary, e.g. when transferring cryptocurrency in the BEP2 network to the exchange wallet).
- Enter the amount you want to transfer (remember about the commission) and confirm the transaction. A verification window will appear in which you will have to enter the codes received on the phone number and e-mail address in the appropriate fields. You willtransaction with confirm the thebutton “Send”.
- After a while you will see confirmation of the transaction. Wedballs in your external portfolio will, after a while or even after a few minutes. This depends on the network where you send cryptocurrencies and its network occupancy. Some exchanges require waiting a certain number of block confirmations in the blockchain network.
- You can also send funds immediately to the so-called cold wallet or hardware wallet.
Before you send more funds to the new exchange, make sure that the operations performed with the exchange are transparent. You can use small funds for this purpose, which you will treat as a test transaction. If you do not object to anything after doing it, you can start acting.
Remember: Specific cryptocurrencies are assigned to specific addresses, in practice this means that when making an irreversible transaction, you have to verify its correctness – it’s nothing unusual. When making a transfer in a traditional bank, we also check the account number to which we make the transfer. It is worth spending an extra minute to check it, otherwise you may experience an unpleasant and irreversible loss of funds. You want to be sure that everything goes smoothly – copy the wallet address or scan the QR code to avoid a mistake.
The time it takes to transfer a cryptocurrency can vary, but it is usually from a few seconds to several minutes. Some apps also allow immediate and free sending of cryptocurrency to the recipient’s e-mail address. When running your wallet, you will probably also encounter a transaction fee, the so-called gas fee, which covers the operations you make.
The first steps are always the most difficult, but thanks to persistence and commitment, the effects of investing in cryptocurrencies may exceed your expectations.