You’ve learned a little about cryptocurrency. The chance to make a nice profit reminds you of the extra cash sitting in your savings account. Maybe you could use some of it to buy some bitcoin and cryptocurrency. This brings up new questions connected to the things you read as you learned about cryptocurrency.
- How do you invest in cryptocurrency?
- Do you use the same exchanges as stocks or are they separate?
- Can you buy crypto with fiat money, i.e. dollars, pounds, euros, etc.?
- What is a wallet?
- What about commissions and fees?
- What makes the best cryptocurrency exchange?
How do you invest in cryptocurrency?
Even though you’ve already decided to use that expendable cash sitting in your savings account, before you invest in anything, you must have a reason. Why do you want to invest?
After you have your reason for investing, in order to invest, you will need to set up an account on an exchange.
Do you use the same exchanges as stocks or are they separate?
Cryptocurrencies have their own exchanges. They allow investors to buy, sell and trade cryptocurrencies, basically fulfilling the same duties as a stock market exchange.
The exchanges vary widely around the world, with some not open to US traders. Be sure to check out what services they offer, the fees they have, their exchange rates, what cryptocurrencies they support, and their level of security.
Can you buy Crypto with fiat money, i.e. dollars, pounds, euros, etc.?
This is an important question to ask when looking for the best cryptocurrency exchange. If you are just starting on your crypto investment journey and don’t own any cryptocurrency yet, you need an exchange that accepts fiat money.
Some accept cash, PayPal, wire transfer, even credit and debit cards.
What is a wallet?
A traditional wallet is a place to store your cash. A cryptocurrency wallet is digital and doesn’t store currency.
According to blockgeeks, a wallet is a software program that stores your public and private keys. It interfaces with various blockchain so users can monitor their balance, send money and conduct other operations. There is no actual exchange of real coins. See full article.
If you’re going to have crypto, you have to have a wallet. There are two types of wallets: hot and cold.
Hot wallets are connected to the internet,easy to set up and good for beginners. However, they are also easily hacked.
Cold wallets aren’t connected to the internet so they’re safer from hackers. They don’t accept as many types of cryptocurrencies.
What about commissions and fees?
Fees vary, from exchange to exchange, and even within an exchange. It can depend on how much you trade and if your account has been verified. Fees also vary if you’re considered the maker or the taker on the trade.
Maker: Provides liquidity for the order book by placing an order that may be matched in the future. Fees are lower.
Taker: Consumes the book liquidity by taking an order from the order book. Fees are higher.
Other fees can include:
- Deposit fees, including transfer fees
- Trading fees
- Withdrawal fees, including transferring coins and tokens to your secure, private wallet.
What makes the best cryptocurrency exchange?
Many factors make up the best cryptocurrency exchange as you’ve already read. Of course, you want it to be secure. Some exchanges are insured, but they only insure your cash, not your digital coins or tokens. You may want to use only a regulated exchange.
Make sure the cryptocurrency is supported by the exchange you choose to use. Check that you can make payments or deposit funds into your account.
Does the exchange allow your country or state to open an account with them? Do they have high fees? And is it easy to use.
Here are some of the best cryptocurrency exchanges.
It trades in four different cryptocurrencies, serves as an exchange, wallet and toolset for merchants. It accepts fiat and has typical fees. You can’t short sell or margin trade on Coinbase. It’s great for beginners, but if you’re more advanced, you can use Coinbase Pro, (formerly GDAX), which has lower fees. Coinbase’s wallet is available on iPhone and Android. It’s registered and licensed in most US areas.
Kraken trades 17 coins, accepts fiat, and allows short selling and margin trading. Its maker and taker fees are about 0-0.26%. Kraken has high liquidity making it ideal for advanced traders.
New York-based, it accepts fiat, has maker/taker fees around 0-1%, trades three coins and likes to cooperate with regulators. It doesn’t short sell or margin trade. FDIC insures your cash, but not your crypto.
Poloniex (after Nov. 1, 2019 US based customers will not be able to trade on this platform)
It supports over 60 different altcoins, Poloniex offers complex charts and analysis. It’s good for intermediate to advanced traders. It doesn’t allow initial purchase using fiat currency, but has low fees.
Relatively new, Changelly allows users to exchange between most altcoins instantly. Users also get the best available trade at the time of their exchange. It’s nice for beginner to intermediate traders. You can purchase bitcoin with US dollars, but be prepared to pay for it. Fees are higher than other exchanges. Changelly offers over 150 cryptocurrencies.
Artificial Intelligence used in Cryptocurrency Trading and Exchanges
Cryptocurrency Exchanges using Artificial Intelligence (A.I.) are beginning to show up around the world. Willing to take over trading for you by taking the emotion out of the trade, they claim to be more efficient and secure. Is there any proof?
A cryptocurrency news article that was posted in July 2019 tells of a study done by author Nikola Gradojevic and co-author Robert Adcock. You can read the entire article here, but they wrapped up their findings in the closing remarks. “We believe that the future of forecasting Bitcoin —and perhaps investing in general —lies in the abilities of artificial intelligence and artificial neural networks.”
Algorithms and (A.I.) kind of work together in the world of trading, according to posts in crypto news. The algorithmic trading software offered by iFlipinvest.com gives you the opportunity to trade various stock portfolios, with or without experience in the markets.
Iflip’s AI Software on the S&P500 ETF compared to market S&P500 ETF by itself 1999 – 2018
iFlip was one of the first platforms to use sophisticated Algorithmic Intelligence (AI) stock trading software to protect and grow wealth. It can identify and manage risk, thus protecting your investments. It can’t predict exactly when a crash will happen, but it comes close. AI will cut losses by selling before the crash, buying when the market is stable and holding your cash during uncertain times.
Right now, AI at iFlipinvest.com is available for use with regular stock investing. A mobile trading app will be offered free in early October. And shortly after that, you’ll be able to trade cryptocurrency and cannabis with the added benefit of using the best algorithmic trading software available. iFlip’s algorithmic trading software can protect your wealth because it uses proven strategies.
There are many things to consider as you begin your crypto investing journey. Be sure to do your due diligence when choosing the best cryptocurrency exchange, wallet, coins or tokens. Remember the role AI can play in your trading. See if the iFlip mobile trading app can help you out.