How to start with crypto?

Most people are afraid of investing in cryptocurrencies because it seems to them to be like some “black magic” impossible to grasp with the mind. The problem is that the same majority of people also don’t understand how the banking system works, the http protocol that makes them browse websites, or why the light bulb is on. To use cryptocurrencies, you don’t need to know exactly how they work. However, you need to know some basics.

If we decide that we want to invest, of course, we have to buy the selected coin somewhere. There are several options for buying cryptocurrencies:

Purchase on the crypto exchange – exchanges are websites that combine buy and sell offers posted by users. If we want to buy e.g. bitcoin, we register, verify our identity, top up the account with a card or bank transfer and issue a purchase offer. If our offer coincides with the existing sales offers, then the appropriate BTC balance will appear on our stock exchange portfolio. Now, depending on what we plan, we can immediately issue a sale offer at a higher price and wait for the price to follow. We can also withdraw BTC to an external wallet, which is considered the safest long-term coin storage practice. The unwritten rule is that if we are not actively trading, we should keep the coins in our own wallet. On the other hand, by keeping funds on the exchange, we trust her that no one will steal from her or lose our coins in any other way. Examples of proven crypto exchanges popular in Poland are BitBay, Binance , CoinDeal , whether Coinquista.

Purchase at an online exchange office – exchange offices are websites where we can make a purchase instantly, even in a few minutes. With smaller amounts, it is often not necessary to verify the identity (KYC), which makes shopping easier. In the exchange office, we will most often be asked to provide our own wallet address to which the purchased cryptocurrency will go. Exchange offices do not keep our funds. The downside of exchange offices is undoubtedly the higher purchase price, due to the additional commission. Popular exchange offices are e.g. BitCan , 4coins , or kantorbitcoin.pl

Purchase in a bitcoin ATM – If we live in a large city and are interested in small amounts up to PLN 4,000, we can very easily buy crypto in bitcoin ATMs. The purchase itself usually does not take longer than a visit to a traditional ATM. The advantage of buying in a bitmachines is the lack of identity verification, all you need to buy is an e-mail and possibly a phone number. The commission is similar or slightly higher than that of online exchange offices. Information on where the nearest bitomat is located can be found on the exchange office website Flying Atom

So if we have already purchased a cryptocurrency, we now need a wallet address. You can write a separate article about the types of wallets, generally it is usually a computer software or a mobile application on which one or many cryptocurrencies can be stored simultaneously. The address is simply the equivalent of our bank account number where we hold our funds. Usually it is a sequence of numbers and letters, for example:

3FZbgi29cpjq2GjdwV8eyHuJJnkLtktZc5

Since we already have an address, it must be secured in some way so that only the owner of the funds can make transactions. A kind of proof that we are the owners of the funds recorded on the wallet address is called the private key. In simple terms, it can be said that it is a kind of password to our address. The private key can be in various formats, in the case of bitcoin it is a sequence of numbers and letters, e.g .:

E9873D79C6D87DC0FB6A5778633389_SAMPLE_PRIVATE_KEY_DO_NOT_IMPORT_F4453213303DA61F20BD67FC233AA33262

Recently, more often it is coded in the form of a phrase consisting of several words, which is able to generate a unique private key, for example:

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REMEMBER! The private key should never be disclosed to third parties, as it is tantamount to giving access to your wallet.

In conclusion, entering the cryptocurrency market is certainly much easier than it may seem at first glance. However, if you do not want to risk your own money, take part in ours Airdrop and get your JanuszCoins for free!

27 January 2021

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