Here’s What You Need to Know When Entering The Cryptocurrency Market
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If you have not read anywhere, then definitely you must have heard about cryptocurrencies. Cryptocurrencies are the new gold in today’s society where most people desire a purely digital currency not based on any form of fiat whatsoever. Cryptocurrencies has become the financial saviour for this age and time. The coinbase market is the largest cryptocurrencies exchange market, with over twenty billion dollars in trading volume and registered users amounting to over ten million, including bitcoin transactions and storage in one hundred and ninety countries. They broker exchanges of several cryptocurrencies namely; Bitcoin, Ethereum, Bitcoin cash, and Litecoin. They also offer access to other digital assets with fiat currencies thirty-two countries. Coinbase, though extremely helpful, can be quite tricky to those who have no clue about the coinbase market. If you want to enter the Coinbase market, follow these five steps;
UNDERSTAND THE CONCEPT OF BLOCKCHAIN
If you plan on entering the coinbase market, then you ought to learn how blockchain works. It is the world’s most popular bitcoin wallet. A blockchain is a continuously growing list of records called blocks, which are linked and secured using cryptography. You could also call the blockchain a digital ledger, which is decentralized and distributed. The decentralized nature of the blockchain is what makes it impossible to hack since a change in one ledger would certainly cause discrepancies in all the other ledgers. Thus in the case of Digital Cryptocurrency Bitcoin, hacking the entire digital ledger would be impossible, since the blockchain is a network of ledgers, which implies hacking millions of computers at the same time.
STUDY THE CRYPTOCURRENCY MARKET
It is not just enough to understand the concert of the blockchain, which in turn leads you to understand the fact that your investment would be safe, you also have to study the cryptocurrency market, learn which currencies are taking the lead. In as much as there are over a hundred types of cryptocurrency that sell for more than USD 1, it is still pertinent to note that Bitcoin accounts for about fifty percent of the entire cryptocurrency market. Analyse the cryptocurrency market carefully, to avoid chances of loss or disappointment. Go for currencies at the top of the table.
NEVER PUT ALL YOUR EGGS IN ONE BASKET
Understanding that every investment is prone to risk is a huge step towards making the right decision in the Coinbase market. Don’t forget that a rise or fall of cryptocurrency value is inevitable, thus, avoid the mistake of putting all your eggs in one basket, or investing solely in one cryptocurrency.
OPEN A COINBASE ACCOUNT
Coinbase allows people to use their bank accounts or credit cards to purchase Bitcoin, Ethereum or Litecoin with the cash deposited in them. It is very trusted and well known, and it has an iPhone and Android app, which makes buying and selling of Cryptocurrency quite easier and faster. Global Digital Asset Exchange ( GDAX), is also a trademark of coinbase which allows for more advanced forms of trade.
FUND YOUR ACCOUNT
This is the final step to entering the coinbase market. Funding your account is quite easy, first upload an identity card, passport or drivers license to confirm your identity, then you can fund your account. While funding your account, be careful not to invest more than you are comfortable to lose, and never buy at an all-time high. In no good time, you would acquaint yourself with the trading of cryptocurrency. Study the charts and always buy low.