Where to start your adventure with cryptocurrencies?
If you are reading this article at the moment, it means that you are still asking yourself this bothering question: where to start your adventure with cryptocurrency? In order to satisfy your curiosity, I decided to provide you with some practical informations on this topic. So find a quiet place where you feel comfortable, and take a few minutes to read and you will find that you will feel satisfied.
What are cryptocurrencies anyway?
Cryptocurrencies (Cryptocurrency) are virtual coins that use cryptography to secure transactions. They do not exist in physical form and cannot be found in paper or metal form. The main feature of cryptocurrencies is that they are decentralized, i.e. they have no central bank or other place where they are issued.
This contributed to their success and dissemination. By using Blockchain technology, i.e. blockchain (read more about it here), they are safe and, above all, protect the privacy of users and transactions. Cryptocurrencies were created to decentralize the monetary system, which means not to be subject to a central authority such as governments or banks.
Who is behind all this? Some history.
The most popular cryptocurrency (but not the only one) is Bitcoin and it can be obtained using the computing power of computers. The first Bitcoins were mined in 2009 by a person or group of people standing under the pseudonym Satoshi Nakamoto (the official identity of the creator is still a secret).
Cryptocurrencies are based on an open peer to peer system – public and controlled by everyone – that uses a database shared between nodes.
Using a p2p network allows Bitcoin to function on the blockchain network, meaning there is no company that controls the value of digital currencies and there is no middleman between users.
Currently, Bitcoin or other cryptocurrencies are completely legal and considered to be real units of account. Therefore, any income from their sale or exchange into fiat currencies must be declared to the tax authorities.
Where to buy your first cryptocurrencies?
Bitcoin and other most famous cryptocurrencies, e.g. TRON, can be bought or sold on cryptocurrency exchanges. For beginners who do not know English and are serious about investing in these assets, the Polish Bitbay or Coindeal exchange is a good solution. To start the purchase phase, you must register online, enter information, including about identity card, telephone number, e-mail address, place of residence. These data will be used to confirm the user’s identity and open a new account for the safe purchase of cryptocurrencies.
Solutions such as Bitbay or Coindeal allow you to buy cryptocurrencies in exchange for fiat currencies such as Polish zloty, Euro, Dollar, Pounds. These exchanges also accept traditional payment systems such as bank transfers and credit cards. Of course, there are also other cryptocurrency exchanges where you can buy your first cryptocurrencies, e.g. Binance, Kucoin, Coinbase.
The exchanges listed above seem to be the best choice for beginners. In addition to exchanges, you can also buy digital currencies in bitomats, the so-called Bitcoin ATMs. However, the transaction fee will be slightly higher, and cryptocurrency rates may deviate from those available on the exchange, usually to the detriment of the user.
Where to store them?
The safe storage of digital currencies is a priority. To protect your funds, you need to choose the right digital wallet. An example of a wallet that I recommend in the case of the TRON cryptocurrency is e.g. TronLink, which supports all TRC-10 and TRC-20 tokens. This wallet also has the ability to freeze / unlock resources and vote.
You can access the wallet via the private key (generated when creating the wallet). This key must be kept in a safe place. It is presented as a sequence of 12 consecutive words, in an appropriate order (so-called seed), or as a series of characters. The electronic wallet also has a public key, commonly known as the wallet address, to which the cryptocurrencies will be sent. We can safely share the wallet address with anyone. Each executed transaction is signed with a private key and is visible on TRONSCAN (the best TRON block explorer).
If you’re looking for best wallet to store other cryptocurrencies, we recommend Trust Wallet or Metamask wallets for multi-coin purposes.
There are many different wallets, but the main difference between them is security. For more information on securing your cryptocurrencies, see our beginner’s guide.
Before you buy a less popular cryptocurrency – how can you check if it is not a scam?
The credibility of a given token or cryptocurrency can be checked online. This approach will allow us to eliminate fraudulent projects with high probability.
Below I will mention a few details that are worth paying attention to.
Pay attention to:
- presentation of the company and its website as well as an official document (whitepaper), which should be attractive and well-written,
- people who play a key role representing a given cryptocurrency must be clearly recognizable by their name, surname, photo and LinkedIn profile,
- does the project have an interesting product and a well-defined plan to understand if the team is still working and delivering on promises,
- coin distribution and understanding the tokenomics of project is also very important,
- potential market interest in the product,
- does not promise guaranteed or excess earnings.
I believe that this article is very valuable for you and will help you understand the cryptocurrency environment initially. Don’t forget to subscribe to our newsletter to be the first to access the latest news.