As people accept fiat currencies ( USD, EUR, GBP etc) issued by central banks . There are people who accept digital currencies ( cryptocurrencies ) managed by the participants there is no central authority to manage it
As More and more people will start to believe and accept these currencies the value of these currencies will start to go up due to their limited supply and increasing demand , which is not in the case of fiat currencies issued by central banks . In the last few months of pandemic central banks have issued trillions of dollars and euros this made people think about the value and potency of the fiat currencies
Lot of people are getting interested in buying or investing in these currencies . The first cryptocurrency which everyone knows is Bitcoin came into existence in 2009 since a decade we have seen lot of hype and manipulation. The prices are so volatile that people are scared to enter . If you are still interested to experience the world of decentralized currencies owned by none and managed by consensus of the participants then lets get started
Steps to buy your first Bitcoin
- Choosing an exchange : There are so many exchanges out there as cryptocurrencies are not regulated so it better to choose an exchange with proper due diligence . In gulf region there are few exchanges which allow you to buy cryptocurrencies. In UAE we have Bitoasis . Follow simple steps for registration and once your account is verified you can add funds using your visa or master card and buy your first Bitcoin
- Trading/Investing : Cryptocurrencies are very volatile and due to their volatility traders take benefit of price fluctuation and make profits . However initially i would suggest you to buy some quantity of different cryptocurrencies and hold it for a month and try to monitor their prices on weekly basis
- Exchange provide both the features – it acts like a wallet where you can store cryptocurrencies and you can use their platform to trade or bet on price fluctuation to make profits
- However some people fear of exchange houses being hacked , alternatively you can use Hardware wallets to store your cryptocurrencies
- Once you own some cryptocurrencies try to send small quantities to your friend or family members who also have cryptocurrency wallet . This helps you understand the efficiency of the network of sending and receiving cryptos at a very lowcost . Compare the cost involved while using the same service with the banks
- Crypto world is fairly new so i would recommend to start with the small amount and see how it works
There are so many things you will explore during this process like – private key, wallet creation,sending cryptocurrencies by scaning the QR code.
If you are planing to accept cryptocurrencies as payment you can explore Bitpay and Coinbase .
Life around us is changing rapidly . Top companies in the world are already exploring possibilities of using block-chain or creating there own smart contracts
