Since Bitcoin’s release in 2009, it has grown as a decentralised currency. Though initially developed as an alternative to regular money, Bitcoin is becoming more and more popular as a payment method worldwide.
It has led to the creation of cryptocurrency exchanges like Swyftx (https://swyftx.com/nz/buy/bitcoin/), which allow customers to buy and sell Bitcoin with traditional currencies.
However, if you’re thinking of buying Bitcoin or some other cryptocurrency, you should know a few things that every new user needs to understand before they do so.
1. Cryptocurrency is Global
Much like regular money, cryptocurrency can be used worldwide to purchase items online and offline. If you’re planning to buy Bitcoin or any other cryptocurrency, remember to check the global acceptance rates.
You don’t need to live near a large city for cryptocurrencies to work for you. It’s also worth noting that not many businesses accept cryptocurrencies as a valid form of payment. However, this is quickly changing, and more and more companies have shown an inclination toward making cryptocurrency legal tender.
2. Exchanges Work Similar to Banks or Credit Unions
A crucial aspect to remember about cryptocurrency exchanges is that they work similarly to traditional banking institutions.
When you buy Bitcoin, Ether, or some other form of coin, you’re opening an account with them, which allows you to store funds for later use. You can also use these accounts to send and receive money to and from other members.
3. Only Use Trusted Exchanges
Though there are a lot of cryptocurrency exchanges to choose from, it’s essential that users only use those that are trustworthy over the years. While you may think that all exchanges work similarly to banks, this is generally not true.
Since there are no laws or regulations in place for cryptocurrencies as a whole, nothing is forcing these businesses to be truthful about their practices.
There are quite a few fraudulent exchanges out there that promise high returns and low risk in order to con you into investing your money. Since there is no way to reverse a transaction, it is vital that you do your due diligence before investing your hard-earned money.
4. Bitcoin or Ether Can be Traded for Other Cryptocurrencies
If you’re planning on trading in Bitcoin or Ether for another digital currency, you should also keep in mind that it’s effortless to do so. It might not be as convenient as trading in money, but the process is relatively close.
You’ll even find that some websites allow users to trade their coins for those of other members without an exchange taking a cut.
5. Anyone Can Buy and Sell cryptocurrency
While cryptocurrency exchanges generally require users to be at least 18 years old, you should know that anyone can purchase coins. It includes minors and even those who cannot open a traditional bank account due to their age or other factors. There’s also no need for an individual to have any trading experience before they begin buying and selling these digital currencies.
These are just five things to know before buying Bitcoin or any other form of cryptocurrency. Though there are many more details that can be discussed, it’s important to keep in mind that this is still an evolving market.
So, like any other investment opportunity, there may be some level of risk involved with purchasing these digital coins, but they’re quickly becoming an integral part of the world economy, and betting on the right coins could potentially make you a millionaire.