The Complete and Only Cryptocurrency Checklist You’ll Ever Need

If you have ever worried about the safety of your online information while paying for goods and services online, or wanted a payment option that is fast, paperless, and easy, cryptocurrency may be for you.

If you have been looking for an exciting option to spice up your investment portfolio, cryptocurrency may also be for you.

But learning about cryptocurrency can be daunting to the layperson. This cryptocurrency checklist will help you understand and succeed in the digital funds market.

What is Cryptocurrency

In the simplest of terms, cryptocurrency is a form of peer-to-peer digital cash. It is used as an online payment that uses blockchain technology to keep transactions safe and secure.

As the name implies, it is intended to allow users to spend money anonymously, as it isn’t tied to a government entity or bank.

Getting Started in Cryptocurrency Checklist

To get started in cryptocurrency, follow these steps:

1. Secure your way to store it. Cryptocurrency is stored in an app, or digital wallet, a cryptocurrency tool that stores your digital assets. Set up your wallet first so that you have a secure place to store your currency.

2. Purchase your cryptocurrency. After you have a place to put it, you can buy cryptocurrency online through exchanges, or even use an ATM for in-person and safe transactions. You can find a nearby ATM at https://www.bytefederal.com/locations/.

3. Send and receive currency. Cryptocurrency is exchanged from one wallet to another by using a public address for the receiving wallet. This is often as easy as scanning a QR code.

4. Keep it secure. Remember to keep your sensitive information, like passwords, secured. You can also use two-factor authentication for your wallet for extra security.

Know Your Cryptocurrencies

Currently, there are over 6,000 cryptocurrencies on the market, but only the top 20 make up nearly 90 percent of the market. Here are a few of the most popular for you to look for.

Bitcoin: There is no denying that bitcoin is the biggest player in the cryptocurrency market. Created in 2009, bitcoin has been traded by millions of investors and is still considered the leader the in cryptocurrency market.

Ethereum: Created in 2014, Ethereum was built for use with the Ethereum blockchain, and works with smart contracts.

Stellar: Stellar was created as a cryptocurrency for large financial transactions. It is often used between banks and investment firms and large entities in the cryptocurrency industry.

Dogecoin- This cryptocurrency was started as a joke in 2013, parodying the Doge meme popular at that time.

Unlike most other cryptocurrencies, Dogecoin is not limited in the amount that can be created, which does make it vulnerable to devaluation.

Risks and Benefits

Just like anything else, cryptocurrencies come with some risks and benefits. Hacking and market volatility are the biggest risks to consider. Benefits include little to zero processing fees and high transaction speeds.

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The main risks of the crypto market are related to the security issues and a high volatility of currencies. Given that crypto is not much regulated nowadays, it’s essential to keep track of the news and security measures, especially while choosing a cryptocurrency exchange.

Since cryptocurrencies are virtual and decentralized assets, you won’t have traditional institutions backing them. You have to keep in mind that you are entirely responsible for the safety of your coins.

Even though the blockchain technology that powers all cryptos is known for its security advantages, hackers are a major concern. Cybersecurity specialists work hard to confront cybercriminals who often try to steal digital assets from users and crypto exchanges. There are a lot of tools, but as hacking strategies evolve along with technological development, none of them is 100% invulnerable. For example, a hacker can make a replica of a reputable exchange and trick people by sending a link leading to the fake site.

Another major risk comes from the volatility of most cryptocurrencies. Prices can drop radically just overnight. You can never be sure what your assets will be worth in two weeks. It makes the process of trading and investing much harder. You have to put more effort into tracking news and analyzing prices. While the cryptocurrency market could stabilize eventually, it is unlikely that we will see this happen in near future.