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Things to consider before buying or selling cryptocurrency

by Staff Writer
18 May 2021 at 11:00hrs | Views
Cryptocurrencies came to offer solutions to the flaws in the current financial system. They create an alternative to the fiat currency that is digital, decentralized, and available for everybody; all you need is an internet connection and a smart device. Before you exchange, you need to check if the exchange accepts your local flat currency and supports deposits from your country. Not all cryptocurrencies occur worldwide and are supported in each jurisdiction due to financial regulations that heavily govern the cryptocurrency market. You should be aware of the following factors when selecting an exchange:

Security
Cryptocurrency uses encryption to verify transactions which means advanced coding involves storing and transmitting data between wallets and to public ledgers. Virtual currency is acquired by cryptography, getting it hard to counterfeit or double-spend. To ensure your crypto exchange is safe, you have to work with reputable cryptocurrency wallets, exchanges, brokerages, and mobile apps. You should also be able to monitor how your wallet is used in transactions.

Maximum Supply of a Coin
Maximum supply refers to the maximum number of coins or tokens that will be ever created; once it is reached, there won't be any new coins mined, minted, or produced in any other way. According to the project's source code, the maximum supply and issuance of new coins are usually defined at the genesis block. Some cryptocurrencies don't have a predefined maximum supply. Thus, they can be mined or minted continuously. The founders hold a percentage of mined coins because they are important when evaluating the value of a crypto project. The supply of the coin determines the price of the coin. If there is a lower supply, it means there is high demand.

Business Proposition
Just like any other business or startup, cryptocurrency solves business problems and fills needs. Business propositions help you understand the reasons why you should buy a product or service from a particular business. It is explained by how a product fills a need, its added benefits, and reasons why it's better to invest in that specific business than similar products in the market.  

Reputation
Customers consider joining trustworthy cryptocurrency companies with good reputations. Reputation determines the social standing of a product in society. With this field being new, there have been cases of hacks, thefts, and security breaches that resulted in people losing millions of moneys. It's advisable to do thorough research before you sign up for a cryptocurrency.

Trading Fees
Trading fees occur every time you buy, trade, or sell cryptocurrency. They are commissions for using this service. You have worked so hard for your money, and it's good if you keep most of it to yourself. Investors and traders need to join an exchange that offers low and competitive trade fees.

Investing in crypto exchange can be intimidating at first, with frequent news about scams and people losing money. It is essential to learn several ways to go about cryptocurrency before you start investing. Your most concern should be safety and security when buying and selling coins.



Source - Byo24News

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