If you are a beginner and you want to know where to buy cryptocurrencies but don’t know anything or you want to know a little bit more, this is your fast guide to understand it.
Doing transactions in crypto may seem kind of hard and intimidating at first glance. We will still help you understand the necessary basic knowledge you need to cover to start buying cryptocurrencies.
When you are buying cryptocurrencies, the most important factor to consider has always been the security, the easy to do transactions and the safety of doing them.
For this reason, we provide the next information that you should take into consideration before going to any exchange and start trading because there is always a different and a good number of ways to interact with cryptocurrencies:
How do cryptocurrencies work?
In comparison to more traditional ways, cryptocurrencies work based on a technology called the blockchain. A blockchain is a chain of information that register and distributes digital transaction records and is not independent of any central bank. This means that it is not controlled by a specific or single organization of authority.
In other words, it is a system that works in a manner that allows the buyer and seller of different cryptocurrencies to interact directly, reducing or eliminating the transaction fees.
Additionally, the transactions can be made in an anonymous manner.
What are Crypto Wallets?
A crypto wallet is a tool that allows you to interact with a blockchain network and make a transaction. It allows you to store information about your private/public keys and also helps you to encrypt and sign information.
There are different kinds of wallets, and the difference starts with being a physical device (Hardware/ paper wallets) or software.
How do crypto wallets work?
As mentioned before, the wallets work interacting with a blockchain network, and they do not store any cryptocurrency. Their main job is to generate the information for blockchain transactions, be it send or receive cryptocurrency.
In a wallet, there is an alphanumeric identifier named an address. This address is generated based on a private key and public key that works as an identifier inside the blockchains to locate what and how many coins/tokens can be sent.
While the address is required to be shared to receive coins or tokens in your wallet, it is important to mention that you should never share your private key for security reasons because it will give access to your funds.
What platform to choose?
There are different ways and forms in which you can trade with cryptocurrency. This also means that different providers are depending on what you are looking for. Also, not all providers can offer you the same services or even coins/tokens.
Your choices begin with if you are looking at a centralized or decentralized exchange.
Here is an example of exchanges based in Europe:
Decentralized exchanges: WhalesHeaven
Centralized exchanges: eToro
Easy to use for new users: BitPanda
Buy Crypto using SEPA transfers: Coinmama
WhalesHeaven: a platform that is worth considering.
It is essentially a decentralized exchange or DEX for swapping coins/tokens that, at the moment, has more than 20 different cryptocurrencies to choose from and trade.
With the benefits that it is not necessary to make a KYC confirmation, meaning that you can trade anonymously.
One of the biggest benefits is that you can trade without limits and between trading pairs without restrictions. Additionally, there are no fees that come from the platform.
This means that there are 0% withdrawal fees, and mainly you have to pay the gas fees.
Also, it is a platform that works in a custody free manner. Basically, they do not touch or have access to any of the users’ funds, making them a good option for people that worry about secure transactions.
To know more about the security measures. Visit our page on How it works.