A Beginner’s Guide to Investing in Cryptocurrencies
What is Cryptocurrency?
So what is Cryptocurrency? Crypto assets or cryptocurrencies are “cryptographically secured digital representations of value or contractual rights that can be transferred, stored and traded electronically”, according to HMRC’s definition.
Cryptocurrency is a type of money that only exists electronically – A digital money or ‘asset’ that can be traded and used to pay for various things online. It’s not based on any actual asset, so there’s no intrinsic value; the value is determined by supply and demand – essentially, it’s only worth what a buyer will pay.
How do I Start?
If you’re looking to buy or sell cryptocurrencies, you’ll need to use a cryptocurrency exchange. These online services often work similarly to a stockbroker, giving you the tools to buy and sell digital currencies like Bitcoin (BTC) & Ethereum (ETH).
The best crypto exchanges make it easy to buy and sell the currencies you want with low fees and strong security features like 2FA.
The safest and most popular brokerage is Coinbase. You will need to register for an account which will also require you to send a photo of some official ID (Driving Licence or Passport) so they can confirm your identity. Once this has been verified, you can choose how you wish to deposit GBP into your Crypto Wallet.
What Now?
Once you have created your exchange account and have BTC in your wallet you can now send to other wallets on different trading platforms.
This may already seem complicated, but it’s no more difficult than managing your bank account online when sending funds to other people.
Once you have deposited your initial funds and made a couple of trades you will be up to speed in no time. It really isn’t that difficult!
We use Binance for normal trading and Pionex for AI bots. So you will need to register for accounts on these platforms. Once done, you will be given unique wallet ID addresses for each account and Crypto you wish to transfer, deposit or receive between each account.
