Going back to prehistoric times, when people started transacting, there wasn’t any concept of money. Instead of having a predetermined currency of money like today, people used to exchange services and goods with one another. This exchange came to be known as the barter system. With time, the dynamics of this exchange gradually got revised.
Here are the different phases of the evolution of money:
- Primary period marks the advent of the barter system or commodity money,
- Second is the commencement of metallic money, or what you refer to as ‘coins,’ were made of various metals like gold and silver, with gold coins having the highest value.
- The third stage was initiated by the introduction of paper money which was lighter and portable,
- Ensuing stage gave rise to the establishment of the banking system and introduction to credit money.
- The following stage triggered the foundation of plastic money or the launch of credit and debit cards.
Thus in time, the evolution of money has undergone several revisions, and many are yet to come!
Once again, money is going through a phase of the revolution. Gradually adopting the advanced cutting- edge technologies, the world is going digital. The origination of the latest blockchain technology has taken it a step farther by launching digital money. It can be said that money is experiencing its sixth stage of evolution, and we are stamping into the era of cryptocurrency.
The first cryptocurrency that came into existence is bitcoin. An unknown group of people contrived it on 31st October 2008, and it was derived from the white paper submitted by Satoshi Nakamoto. When bitcoin was introduced, it was given to people for free, and in the present scenario, the price of 1 bitcoin is close to seven lakh rupees. Earlier, there was only one cryptocurrency in 2008, and if you look at the current day scenario, there are more than 5,000 cryptocurrencies. So just think about the giant leap that cryptocurrencies have taken. While you are reading this blog, there can be a possibility of another cryptocurrency getting deployed. People have already started investing lump-sum amounts in the cryptocurrencies with fantastic returns. Let us have a look at the tricks of the trade and understand where to trade bitcoin.
The tricks of the trade with Cryptos
There are numerous ways to buy and trade cryptocurrencies. It can be purchased on cryptocurrency trading platforms, and several market places facilitate buying bitcoins directly from people. Buying a bitcoin varies from person to person, and you can use various methods such as online, cash, or even bank accounts.
The preliminary step is to get hold of a digital wallet to store your cryptocurrencies, and it is mandatory for buying one. After that, you can use any of the methods mentioned above to buy cryptocurrencies. There is no restriction on the type of online wallet you are creating.
Following are examples of different online wallets:
These online wallets can be
- a part of any exchange platform
- an independent provider
- A desktop wallet
- a mobile wallet
- An offline one like a hardware device.
Let me provide you with some of the tricks and tips for keeping a digital wallet.
The first and foremost thing is that you have to keep keys or passwords of your wallet safe. You can’t lose the key or password as that can never be recovered. If you lose it, then that will be the end of your cryptocurrency wallet. Bitcoins or any other cryptocurrencies in your wallet, of value, will be lost on breach of keys or passwords.
The second thing is to invest according to your budget as the prices of cryptocurrencies go up and down every moment, just like stocks. You can even do bitcoin leverage trading and bitcoin margin trade as well as Ethereum Arbitrage Trading. However,while other times the loss may overshadow your profit, hence invest wisely.
One of the easiest ways to buy bitcoin online is by creating an account in an online cryptocurrency exchange. There are several cryptocurrency trading platforms available today. The cryptocurrency trading platforms are secure, and they allow numerous degrees of liquidity. All you need to do is a bit of research on some of the cryptocurrency trading platforms to get the bigger picture. Some exchanges are prone to hacking and might get closed, so you need to be careful. Similarly, you should also research the wallets before getting hold of any of them. Some well-known examples are here below:
One of the best cryptocurrency trading platforms in the world currently in terms of USDT is Bitfinex, while other high volume exchanges are Coinbase, Poloniex, WazirX, Bitstamp. For meager amounts, the other reputed cryptocurrency trading platforms and the beginner’s cryptocurrency trading platforms provide an excellent service.
After introducing KYC(Know your client) and ALM(Anti Money Laundering), the security has gradually increased, and most of the exchanges require your complete information to validate your identity. Then only you will be able to open your account. The report includes your id proof, photo, bank account details, proof of address, and so on.
The transaction is not a big deal as these cryptocurrency trading platforms accepts payments via bank transfers, debit cards or credit cards, UPI, and few are willing to work with Paypal transfers as well. There is a slight transaction fee for every transaction you make, and that includes the cost of using the cryptocurrency network. The transaction might take some time from a few minutes to a couple of days, and it is dependent on the traffic that is a part of the transaction.
As soon as the cryptocurrency trading platform receives your payment, it will allow you the number of bitcoins you wanted to purchase with that amount. The bitcoins will be deposited automatically in your wallet in the exchange. You can even transfer the funds to your off-exchange wallets.