Cryptocurrency Networks & Wallets
Cryptocurrency is much like different fiat currencies (Dollars, some are more expensive than others Euros, Pound, Yuan, etc.) and there are also those that countries do not accept as a form of payment. Just as you would exchange your local currency for one that is accepted by the recipient, you can exchange one cryptocurrency for another that is accepted for your specific case. Also, just like one can exchange foreign fiat currency back for your own. One can also exchange cryptocurrency back to fiat currencies, often with less costs and effort than dealing with different banks and exchange fees. Unlike fiat, cryptocurrency cannot just be printed because a government decides it wants more money and like fiat, the value of a currency is determined by how much they utilise it. Each currency also has transaction fees that are determined by the networks that they are built upon.
New adopters of crypto should know what they want to do with the cryptocurrency before buying any. We do not buy gold so that we can go buy a packet of gum and neither should beginners buy Bitcoin for everyday use as the more valuable cryptocurrencies have more costly transaction fees that only make it worth trading in large amounts. A bad transaction on the wrong network (blockchain) can easily cost more than the minimum South African salary.
Many cryptonauts use Bitcoin for long term saving and it is thought of as crypto gold by many, while other blockchains, currencies and tokens can be more economic for every day use. Each blockchain has a native wallet that can be used to store your crypto in, for use on that blockchain. Most blockchains, like Ethereum (ETH), have token representations of other cryptocurrencies for use on their blockchain, Like wrapped Bitcoin (WBTC), with the same value as BTC. WBTC can also be found on other blockchains like on Binance (BNB/BSC) and Tron Network (TRX). These tokens often form part of crypto exchange opportunities for community members to pool their money together for extra crypto earnings from the transaction fees that get split proportionately between all community members who staked their crypto in available liquidity pools. Many platforms also offer interest. credit and loans for saving your crypto with them like banks do with our fiat.
To enable cross-chain compatibility and trading, most cryptocurrency wallets slight differences in how they work, depending on the the cryptocurrency you use. Some work with just the address, like BNB, BTC, ETH and TRX, while others like Ripple’s XRP also require’s a Tag address for transactions to complete successfully.
Binance is the biggest cryptocurrency exchange and it is also one of the easiest to buy crypto on after new clients have done basic account verification through email. They have reasonable daily buying and trading limits that can be increased with each step of Identity verification, also known as KYC (Know Your Client). Much like normal banks, most exchanges and platforms also have daily withdrawal limits to help prevent theft because an account was hacked. Binance also has its own blockchain and cryptocurrency (BNB and BSC) that enables other cryptocurrencies and projects to offer investment opportunities for community members to take advantage of.
Binance and their partners also offer investment opportunities on the Binance website that community members can stake cryptos in for returns on the amount that they invest over the time that it is staked. This provides a good way for beginners to earn some extra cryptocurrency before they have learnt how to move and use their crypto on blockchains.
Each cryptocurrency available on Binance will have a wallet and address in your account for buying, depositing, trading and withdrawing. One cannot send Bitcoin (BTC) to a Bitcoin Cash (BCH) address and wallet, or vice versa. So, everyone must be careful to copy and paste the right addresses and tags into the correct fields when they add an address to withdraw to. Also, make sure you have selected the correct coin and network that you want to use the crypto on.
Some crypto addresses give you the option of automatically converting your crypto to automatically work on a specific blockchain/network. BNB can be withdrawn as BNB to another wallet, or, you can withdraw your BNB and receive it as BSC for use on the Binance Smartchain. One can also choose to withdraw BTC, ETH, TRON and others from their own blockchains and receive tokens that work on the others. Some only work on their own blockchains with specific use cases.
Binance also offers different exchanging and trading opportunities for both beginners and the more experienced. Beginners can use the convert option to exchange one crypto for another, but, they have quite high minimum amounts for this service and more seasoned members can use the more direct peer to peer options that are available.
If you are only planning on buying crypto to save it, you will want to move it off any exchanges to a private wallet on your PC in a desktop wallet (often referred to as a soft wallet), an app on your smartphone, or, on a removable hardware wallet (hard wallet) that can be plugged into a USB slot, used to withdraw and receive crypto on and then be unplugged and stored in a safe place. The hard wallets can be a little pricey, but worth the money once you have enough to require more security for your crypto.
Those who want to use their crypto to earn more, can select from a few wallets that enable them to connect directly to most different decentralised applications and websites, although, some are more compatible other blockchains too.
Internet browser extension wallets are very popular for those who only work with crypto on their PCs and they are relatively safe, with relative being dependent on the overall security of the PC it is on, as well as general password strength across all platforms that make hacking difficult. MetaMask is one of the most popular browser extension wallets and is the first that all crypto enabled sites generally want to connect to. MetaMask is set for the ETH blockchain and the most popular tokens by default, but other blockchains and tokens can be added quite easily. Binance also has its own internet browser extension wallet that makes it easy to connect to decentralised apps on the Binance network that will be discussed in its own blog that will also discuss the platforms I use it on. Other exchanges and platforms with investment opportunities that I am invested in will also be discussed as we progress.
Diversification is key. It is never smart to keep all your money all in one investment, or wallet because anything can happen and we never want to risk losing everything in one place. It is best to split your crypto up and putting it on different platforms, blockchains and in different cryptos to minimize overall loss, while also being able to compare how they perform.
Below are some links to other crypto exchanges that can be used to buy into crypto with.
Advanced cash combines support of multiple global and national fiat currencies, plastic and virtual prepaid cards, merchant tools and robust account security features into a single easy to use environment.
Coinbase. You’ll get $10 in free Bitcoin when you buy or sell $100 or more in crypto.
Changelly is an instant cryptocurrency exchange that allows you to exchange crypto fast and buy it with a bank card. The service provides the best crypto-to-crypto rates and supports over 140 cryptocurrencies available for exchange.
etoro is a social trading and multi-asset brokerage company that focuses on providing financial and copy trading services.
FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. We strive to develop a platform robust enough for professional trading firms and intuitive enough for first-time users.
gate.io provides safe and transparent transactions. Buy, sell or trade hundreds of digital currencies such as Bitcoin (BTC), Litecoin(LTC), Ethereum(ETH), EOS(EOS),Tether (USDT) etc.
Huobi Global has a variety of features that make it an ideal place to buy and sell digital assets. Manage Your Assets Trade with up to 5X leverage for spot trading.
KuCoin is a full-featured spot trading platform for many digital assets and cryptocurrencies, including: Bitcoin, Ethereum, NEO, EOS, USDT, KCS and many more.
OKEx is a world-leading cryptocurrency and Bitcoin exchange that provides hundreds of trading pairs for spot and derivatives.
SwissBorg. Accelerating the world’s transition to decentralised nations. We are a team of finance and technology experts dedicated to democratising wealth management . by making it fun, fair and community-centric. Download the app to your smartphone.