With the exception of cryptocurrency miners and those of you who have acquaintances who are already involved in the crypto space, an exchange will likely be your first exposure to the crypto world.
WHAT IS A CRYPTOCURRENCY EXCHANGE?
A cryptocurrency exchange is a digital marketplace where people can access cryptocurrencies by using fiat/money to purchase them, or even using other cryptocurrencies to purchase a coin/token of choice.
Exchanges that deal with fiat and crypto are typically the most popular starting point for newcomers into the crypto ecosystem.
HOW DO I GET STARTED WITH AN EXCHANGE?
Every crypto exchange can be accessed through their respective websites, and each one has its own peculiarities regarding client interface. We suggest you visit a number of exchanges that you might be interested in and test them out. This would be a great way to find what you’re comfortable with, and what will work best for you. The one commonality that crypto exchanges seem to have in common is that they look like, and work a lot like online banking websites. Anyone familiar with online banking should be able to navigate a crypto exchange relatively easily.
The first steps to beginning your crypto journey are:
- Sign up for an account
- Verify your identity
- Configure your payment source by linking your bank account, credit card, or debit card
- Fund your account/deposit funds
SO, I FUNDED MY ACCOUNT, NOW WHAT?
These next steps are different for all individuals and are completely dependent on your goals. Someone with a conservative orientation and approach to crypto would likely begin by purchasing the more established cryptocurrencies and then likely pull them right into cold storage as they wait for the value to rise. This crypto strategy is known as HODLing – humorously named after a typo made in a Bitcoin chat forum in 2013. The investor who made the typo was attempting to convey, that he was intending on HOLDING, his Bitcoin despite falling prices. As you explore the space, it’s important that you are aware of the purchasing, selling and trading options at your disposal. Knowing what’s available to you and how to use each option, will enhance your experience.
And there you have it! You’ve taken your first steps into cryptocurrency, funded your account and perhaps even made your first crypto purchase. You are well on your way to becoming an expert.