Buying and selling virtual currency – things you need to know before starting

So you’ve heard about buying and selling virtual currency and now you want to get into the business but don’t know where to start. Fear not, it’s not too late to get educated on the topic. There always enough time to get started, not without knowing what it’s all about though.

Buy and sell virtual currency as a hobby

Virtual currency is a type of unregulated digital money that’s becoming more and more powerful every day. This type of money has been here since 2011 but it grew bigger over the year 2017. Nowadays there are about 1 500 different kinds of crypto currency and the number is still growing.

To get into the business you should have at least basic knowledge of technology and be comfortable with making risky moves. For some people the virtual currency market even becomes a hobby because it provides great excitement. Be careful though, in some cases it can even become an addiction. There are, of course, like in any other business, many advantages and disadvantages and even a few tricks you can learn along the way.

Advantages of crypto currency

  • Easy access

Crypto currency is already available to the general public and almost anyone can use it. As mentioned before, you have to have at least basic knowledge of technology to understand what you’re doing. It is a decentralized operation; the currency is not supported or eliminated by any central government, which means there is no centre where data or information can be stored. Almost anyone that can make easy online fund transfers can become part of this business. Crypto currency exists on the internet, that’s why you only require a mobile phone or a computer to get started.

  • Lower fees

This new currency is not controlled by any government. Credit card processing companies charge very high fees; it’s not the same with virtual currency. With credit cards the owner is the one paying a fee but in the crypto business, it’s the buyer that pays the fee. However, the fees are still smaller. They can pile up if one’s not careful but again if that happens, you’ll learn from your mistakes.

  • Security

You don’t need to share your personal information or the details of the transaction made between you and the buyer. The government doesn’t need to know any information since the crypto currency business is truly decentralized. In most cases you also remain anonymous. Although not every kind of virtual coins offer this option, it still means people will only know information about the transaction but not you as a person. Nobody can also steal your personal information from merchants, which ensures the privacy of your data. You have to be smart about it though, and keep your computer safe. Simple things like antivirus software, a reliable firewall and regular scans can help you reduce any chance of hackers and Trojan horses infiltrating your computer and stealing your data.

  • International trades

There are no limits when you talk about transactions using crypto currencies. The location of the seller and buyer doesn’t matter; you can still transfer as many coins as you want. Since the virtual currency world is not under control by any bank, transactions to different countries are extremely easy. What’s more, no third party exists in this world. You don’t need to trust any bank with your money, it is simply up to you how you decide to spend or sell your money.

See also  House Cleaning Service - 7 Great Tips on How to Find the Best Professional Company

Virtual currency trading tips

First of all you should find a way to buy crypto currency for as less fees as possible. This can be achieved by using all sorts of websites that specialize in trading. Don’t forget that at the beginning you may not be sure what the best price is but you’ll learn soon enough. It is also important to remember that sometimes the cheapest doesn’t equal the best.

Next you may want to participate in initial coin offerings (or ICOs). ICOs are a mean of crowd funding centred on crypto currency. Basically if there is a lot of demand during the ICO, it means that once the coin hits the market its value will most likely grow very quickly. There are many websites that can help you find new deals you can follow.

Did you know you can also earn free coins? The easiest way is to do so by airdrops. Airdrops are free coins or tokens which are usually given away when the brand want to get more recognition. They usually give out only a small amount but if they’re successful, the amount of one coin can double or triple within a few months. You can even get a small amount of digital money while playing games on your phone.

Another way to earn free coins is through Inflation pools. Some coins have an inflation mechanism and periodically give away a small amount of money if you already own any amount of that virtual currency. However, the inflation fully depends on the coin’s mechanism and sometimes you may not get any reward.

Keeping your coins safe

Being secure is very important and there are many ways even you can contribute to the safety of your computer and earned coins.

  • Have a good antivirus, firewall and all your softwares and OS up to date
  • Use different emails and different but equally strong passwords per account.
  • Don’t talk much about how much you made or invested online. If you do so, you might receive targeted attacks.
  • Never give out your personal information to anyone. Legit websites won’t ask for your personal data.
Denisa Antalová