Bitcoin was the first cryptocurrency. It’s the most well-known and the most valuable. It’s also accepted in many places as currency, including online retailers and brick-and-mortar merchants. Litecoin is also accepted by many retailers. If you want to use your cryptocurrency to purchase goods and services, Litecoin may also be a good choice. If you’re looking at smaller niche cryptocurrencies, do some research first to make sure it will suit your purposes.
Compare 3 or 4 exchanges to choose the one that’s best for you. Make sure you understand the exchange’s interface and how to use it. Because exchanges are extremely vulnerable to hackers, carefully assess each exchange’s security. On crypto exchanges, higher fees don’t necessarily correspond to better service or more protection. Generally, choose an exchange that offers the cryptocurrency you want for the lowest fees possible.
The exchange will send you an email with a code you’ll use to verify your email address. You’ll typically also be texted a code that you’ll have to enter to log onto your account. This code is part of two-factor identification (2FA), and makes your account more secure than simply entering a username and password.
Some crypto exchanges accept payment through other payment services, such as PayPal. Depending on the method of payment you choose, it may be 3 to 5 days before the connection is completed and you can make your first purchase.
Cryptocurrency exchanges work similar to stock exchanges. If you’re familiar with placing an order to buy or sell stock, you shouldn’t have any trouble navigating orders for cryptocurrency. You can also buy one type of cryptocurrency with another type of cryptocurrency. The values of different cryptocurrencies relative to each other fluctuate.
Once someone has your private key, they can send your cryptocurrency wherever they want. Don’t give anyone your private key unless you are paying for goods or services. Your cryptocurrency will likely be safe if you keep it in your exchange account for a few days. If you’re not going to spend it, though, you should choose a separate wallet. There are several different types of wallets available that will secure your private keys. Choose the one that provides the best balance of convenience and security for your needs. The best wallet for you will depend on how you plan to use your cryptocurrency.
Tech retailers and service providers, such as Microsoft, are more likely to accept cryptocurrency. However, other online shopping sites, such as Overstock, take cryptocurrency as a method of payment. Look for cryptocurrency logos near the shopping cart or payment page to determine whether the website takes cryptocurrency. If one of your favorite shopping sites doesn’t accept crypto, you might send a suggestion and recommend they start.
To determine whether a merchant accepts the type of cryptocurrency you have, look for a logo near the cash register. This will generally be in the same place where a merchant would display logos for the credit cards they accept.
Including cryptocurrency in a diversified portfolio could be successful. However, balance your cryptocurrency with more conservative investments to avoid a significant loss.
You may have more security if you download your wallet software to a dedicated computer that remains offline except when you’re processing a transaction. Depending on your connection speed, the blockchain may take as long as 2 days to download. Start the download before you make your first order. That way your cryptocurrency isn’t sitting in your account at the exchange, where it is more vulnerable to hackers.
Web wallets also have fairly intuitive interfaces, and are similar to other types of online accounts. If you aren’t particularly tech-savvy, a web wallet may be easier for you to use. Hybrid wallets, such as Copay, can be accessed on multiple devices, and are generally a little more secure than web-only wallets. These may also come in handy if you plan to use your cryptocurrency at brick-and-mortar retailers in addition to online.
Mobile wallet apps are available for both iPhone and Android smart phones. Some, such as Breadwallet, allow you to manage your account with a username and password. Others, such as Airbitz, do not actually store your cryptocurrency, providing a little more security. If you have a mobile wallet, make sure your phone cannot be accessed without a secure password, and keep it locked at all times when you’re not using it.
Hardware wallets will give you the best security for your cryptocurrency. However, if you store your cryptocurrency on a hardware wallet, you won’t be able to access it conveniently.
To regain access to your cryptocurrency, you simply scan the codes. You’ll have to have another wallet, such as a web wallet, to scan your cryptocurrency into if you want to use it. While paper wallets aren’t vulnerable to hacking, they remain vulnerable to the same threats any piece of paper would be. For example, if your paper wallet burns in a fire, you’ve lost all access to your cryptocurrency the same as if cash were burned in a fire.
