Information about cryptocurrency rates, including subsequent records, appears more and more often on the top of economic websites, and the group of crypto investors is systematically growing. How to join them?
You too can become a miner
The oldest way to obtain cryptocurrencies was mining them, which allowed you to get them (at least at the beginning) almost for free. Of course, it’s not about physical work with a pickaxe. To put it simply, you had to use the computing power of your computer to solve complex mathematical equations that allow you to verify transactions in the blockchain network. In return, miners receive new units of a given cryptocurrency.
This is how the most popular cryptocurrency – bitcoin – is mined all the time, but today its mining is a real industry – it requires huge computing power (computers called “miners” are created for this purpose) and high energy consumption. Therefore, it is not a proposition for beginners.
You can, of course, mine other cryptocurrencies that require less computing power, but you must remember that only the most important of them can be used as a means of payment. Moreover, the most popular ones are the most liquid – in other words, it will be easier to sell them when we decide to cash in on our investment.
This doesn’t mean that you can’t get cryptocurrencies for free or almost free today, although the amounts won’t be staggering. Some platforms, such as www.binance.com, offer free cryptocurrencies for taking quizzes. So-called cryptocurrency faucets are applications or websites that give away small amounts of cryptocurrency as rewards for completing simple tasks. The name is appropriate because the rewards are small – like dripping water from a tap.
The source of cryptocurrencies may simply be earning them – i.e. collecting payment for goods or services in this form.
Buy instead of digging
A much simpler and more effective way to obtain cryptocurrencies is to buy them. There are online platforms where you can buy and sell bitcoin, ethereum, solan and ripple. They operate similarly to a traditional stock exchange. They allow you to exchange one virtual money for another or sell it for traditional fiat currencies.
This is the most convenient and common option for accessing cryptocurrencies. All you need to do is create an account on your chosen platform, which you can do online, and you can buy, sell and store cryptocurrencies on the exchange or transfer them to your digital wallet with an individual private key. The most famous ones include: Coinbase, Binance, Zonda, Kraken and Kanga Exchange.
Some exchanges require identity verification, which may be an obstacle for those who associate cryptocurrencies with full anonymity. However, there are also those that do not require users to provide personal data during registration.
Bitcoins and Ethereum can also be purchased at cryptocurrency exchange offices. More and more payment institutions also offer them. For example, in 2020, PayPal began allowing users to buy cryptocurrencies and use them to pay for purchases from 26 million merchants worldwide. AstroPay is popular in Latin America. Users simply download the mobile app or purchase an AstroPay card, top it up, and use it to pay for crypto. In Europe, the Sofort online payment system ensures quick settlement of bank transfers. Customers using it do not have to provide the seller with personal data or credit or debit card details.
You can also buy cryptocurrency from other individuals – after all, one of the principles underlying this instrument is peer-to-peer technology. Offers from natural persons can be found on the Polish Bitcoin Forum and on the website www.localbitcoins.com.
Finally, there are more and more common bitcoin ATMs, i.e. cryptocurrency ATMs.
What kind of vault
Regardless of whether we mine, earn or buy bitcoins or altcoins, we have to store them somewhere. The exchanges themselves may allow you to store cryptocurrencies there, but cryptocurrency wallets are a much better solution. They store private and public key information that is necessary to make transactions. The private key allows access to assets on the blockchain and must be protected from access by third parties. The public key works like a bank account number – it can be freely shared without compromising the security of your digital wallet.
There are several types of wallets and each of them has its advantages and disadvantages. The most popular are online wallets (hot wallets), which are constantly connected to the Internet and allow quick access to our digital assets. They can be used on various devices, such as smartphones, tablets and laptops.
The mechanism of operation of a hot wallet is to store private keys on the Internet, which allows quick access to cryptocurrencies after purchasing or mining them. This is a solution for active players in this digital market. The disadvantage of this type of solutions is greater susceptibility to hacker attacks due to the constant connection to the network.
Hot wallets come in various forms and perform various functions. These can be mobile apps, web wallets, or ecosystem-specific wallets. For example, Coinbase Wallet is linked to the Coinbase exchange, and Trust Wallet offers integration with Binance.
There are also cold wallets – paper and hardware. These may be physical documents or cards on which the private and public keys to the cryptocurrency wallet are written. They operate completely offline, which makes them resistant to network attacks. An example of such a wallet is Bitaddress.org – a website that allows you to generate a bitcoin paper wallet. The user can generate private and public keys offline and then print them on paper. These records must, of course, be protected so that they do not fall into unauthorized hands – such as, for example, a password for a banking application or a PIN for a card.
Hardware wallets are special devices (costing several hundred zlotys), usually looking like a pendrive, to which you can transfer digital assets, e.g. from the stock exchange or hot wallet. To make a transaction, you must have the appropriate software and confirm the process with a private key. Hardware wallets are considered the safest way to store cryptocurrencies.
Carefully!
When entering the cryptocurrency market, you should be aware of several threats – although, for example, bitcoin has given stunning profits in the long run to those who purchased it at the beginning of their business, you must remember that – as in the case of traditional investments – there is no guarantee of profit. Especially since the cryptocurrency market is characterized by high volatility.
However, anonymity – an asset of cryptocurrencies – may also be a temptation for fraudsters, so you should carefully examine the credibility of the coins, exchanges and applications you want to use.
Finally, as with all online activities, cybersecurity rules must be followed.
What Kanga offers
• Kanga is a platform offering a wide range of services related to the cryptocurrency market. It was founded in 2018 by Polish entrepreneurs, programmers and fans of blockchain technology. Its mission is to “with passion and courage, together make the world of cryptocurrencies accessible to everyone.” This means an offer for both beginners and advanced investors, providing a wide selection of cryptocurrencies, as well as the successive launch of new projects with high investment potential.
The client can count on:
• Simple and quick purchase and sale of digital currencies via: an exchange, a network of partner stationary currency exchange offices and currency exchange between individuals within the community Kanga Local.
• Friendly interface and a free knowledge course about cryptocurrencies and blockchain technology (Kanga University).
• An easy-to-implement tool for both paying and accepting payments in cryptocurrencies by entrepreneurs (Kanga Pay).
• Helpful and experienced support and customer service team in Polish and English.
The basis is knowledge and principles
Maciej Harcej, manager of the Operations Department at Kanga / Press materials
I would recommend all new players in the cryptocurrency market to start this adventure with education. We should also set a limit on the funds that we can use 100%. lose. This amount cannot be increased just because we want to “redeem ourselves” or because we have already exhausted the planned funds and a “super investment opportunity” has appeared.
You absolutely cannot use money necessary for life or – even worse – take out loans to invest in cryptocurrencies.
Before investing in a given token, we should have a plan in place. First of all, the plan should specify the prices at which we want to buy, as well as the exit prices for both increases and decreases. This plan should be strictly adhered to. I recommend dividing the investment in a given token into several parts (I usually divide it into three) and gradually realizing the profit.
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kanga Logo / photo: press materials