Are you planning on shopping for crypto? Be prepared with this checklist!
Cryptocurrency is an incredibly speculative investment. Help decide whether cryptocurrency suits you by measuring your risk appetite to judge whether you can stomach the volatility.
Before investing, educate yourself on the risks involved, such as environmental fears, potential regulation, pump-and-dumps, consumer protection, and volatility.
Having purchased cryptocurrency from an exchange, such as Binance, take the necessary steps to better secure your crypto in either a hot or cold wallet.
The most accessible place to buy cryptocurrency is through one of the many available crypto exchanges. Before you purchase, you’ll need to have the following:
What is a Cryptocurrency Exchange?
In short, a crypto exchange is a marketplace where you can buy and sell cryptocurrencies/digital currencies using fiat currency (e.g. buying Bitcoin using the US Dollar) or digital currencies (e.g. trading Bitcoin for Ethereum).
A secure internet connection. Do not use public WiFi as this is insecure. Consider having a VPN if you are going to be using public WiFi
Personal identification documents are ready for verification
Payment account/method of payment
An account on a cryptocurrency exchange
A mobile phone for two-factor authentication (2FA)
A hardware or cold cryptocurrency wallet to store your crypto
An external wallet to store your cryptocurrency is strongly recommended but not essential. The wallet stores the public and private keys that enable you to be in charge of your cryptocurrencies and interact with blockchain networks. Think of them as bank accounts for your crypto. After all, cryptocurrency exchanges are prone to hacking and scandals. For example:
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