Cryptocurrency For Beginners Like Me

If you're anything like me, you may not understand electronics all that much and computer tech talk may sound like an alien language. Things can get a little complicated trying to decide which cryptocurrency to invest in and how to purchase. You may end up spending more time researching how the coin works then actually trading or profiting. To make things simple most cryptocurrency is based on a Blockchain.

Cryptocurrency is simply a medium of exchange, created and stored electronically in the blockchain, encryption techniques are used to control the creation of monetary units and also verify the transfer of funds.

Although cryptocurrency is considered a monetary unit, when traded they should be treated and researched more like stocks and less like currencies.

When trying to figure out the current price of a cryptocurrency it can be confusing because many sites list the value relative to bitcoin. One site that makes it easy to navigate through cryptocurrency prices, market caps, and statistics is https://coinmarketcap.com/

CryptoCurrency Market Capitalizations website tracks most of the alternative coins on the market as well as Bitcoin. It shows users the current value in dollars (USD) and Bitcoins for each coin.

Many first time cryptocurrency buyers will usually join a site like Coinbase https://www.coinbase.com/ to purchase either Bitcoin, Ethereum, or Litecoin (currently the only three you can purchase on this site) at market price.

If your like me and did this or are planning to STOP I repeat STOP!

Purchasing cryptocurrency directly from Coinbase charges you hefty fees and your paying between the ask and bid price usually above current market price.

A cheaper and more efficient option is gdax https://www.gdax.com/
GDAX offers institutions and professionals the ability to trade a variety of digital currencies like Bitcoin, Ethereum, and more on a regulated U.S. based exchange, and your coinbase account is linked directly to your gdax wallet.

Next you may choose to transfer this balance to another exchange like Bittrex https://bittrex.com/
Bittrex supports both new and established cryptocurrencies, providing you with a continuous growing selection of trading and investing opportunities, they also conduct compliance audits on all new coin launches. The custom trading engine was designed to be scale-able using elastic computing. The Bittrex platform processes and executes orders as soon as they are placed so you never see a crossed order book or delay in processing of trades.

Bittrex does have a very high turnover of cryptocurrencies this leads some to accuse it of allowing pump and dump schemes easier access to erode confidence in the cryptocurrency ecosystem.

This is just a basic guide for beginners like myself anyone with more tips or advice on how to get started please comment bellow.

If you haven't created an account on coinbase yet use this code for $10 free Bitcoin when you sign up and make your first deposit. https://www.coinbase.com/join/593715199ee01708cdb70b3b

Please Upvote if you liked the post, follow @isteemithard to stay up to date with my posts, and leave a comment to let me know what you think!