Steps for Success in Buying Cryptocurrencies
You want to start making money on cryptocurrency trading but have never made a deal online? It’s never too late! However, you should know that crypto trading has its own rules and peculiarities, and it’s important to do your own research.
Say, you have decided to buy Enjin coin but have no idea what to start with? Don’t rush to register on the first exchange platform you see. First, you should get acquainted with a few simple rules and measures that will save you time and money.
Make sure your bank allows for direct transfers on a crypto exchange
A few years ago, banks did not trust crypto exchanges because they had no understanding of how they work. Today, cryptocurrencies have become an indispensable part of our lives, and many banks allow for making deposits directly from your card/account. You can easily figure this out by contacting your bank’s customer service. Ideally, you should be able to both deposit and withdraw money without strict limits.
Find a reputable exchange
It is not a secret that exchange platforms often become the primary targets of hackers. “How about blockchain?”—you would ask. The thing is that the exchange platforms themselves are centralized and run by servers. Even smart contracts aren’t always enough to prevent fraudulent transactions. Thus, many popular exchanges have been attacked at least once.
Explore the history of crypto exchanges you plan to work with and find out whether they have been ever hacked. Also, don’t forget that the list of supported coins is different; an exchange should work with the ones you want to trade.
Choose a safe cryptocurrency wallet
This is the primary measure for any trader. Without a reliable crypto wallet, you risk all your funds. Of course, you can store the assets in a crypto exchange. However, it’s not always convenient, and many platforms get hacked from time to time. There is the whole array of advanced third-party crypto wallets available. If you plan to trade on a regular basis, select online wallets. If you want to purchase cryptocurrencies to make a long-term investment, consider installing a desktop wallet or buying a hardware wallet.
When selecting a wallet, take the following aspects into account:
- Number of supported cryptocurrencies (make sure that the coins you plan to buy can be stored in a wallet).
- Transaction fees.
- History of thefts, if any ever happened.
- Overall rating and user reviews.
- Type of wallet and convenience of use (including interface, navigation).
Verify your identity and set up 2-factor authentication
Identity verification is a typical practice for every self-respecting cryptocurrency exchange. You should provide the scans of your documents to verify your personality, which helps to prevent fraud and secures other exchange users. Be prepared that the customer support may require the photo of your face and you holding the ID or passport.
After submission of your documents, you can set up 2-factor authentication: you will get the code via text messages, email, or Google authentication. That will protect your account against hacking.
Learn about your country’s regulatory laws
While some countries allow for crypto trading without any limits, others strictly prohibit any transactions with crypto or impose severe taxes. Find what are your nation’s specific laws regulating the purchasing and selling of cryptocurrencies. It is highly recommended to follow these laws, or you risk facing serious consequences.
Thanks to these 5 recommendations, you can sleep soundly knowing that your crypto assets are safe and secure, and there’s nothing to prevent you from successful trading. All you need is to find a reliable platform and learn the “rules of game” in your country.