Blockchain for Beginners using Cryptowalletcheck
A brief Introduction.
We help you to explore a 21st century technology, which connects financial services and payment with potential use cases within all relevant sectors of the real-world economy.
Blockchain promises to be decentralized and secure and allows for instant money transfers at very competitive fees.
1. How to invest?
2. What’s an exchange?
3. What kind of investor am I? How to manage my portfolio?
4. What’s a wallet?
How to invest?
If you are interested in a particular cryptocurrency or token project, you have the opportunity to invest a partial amount of your savings. We highly recommend to investigate the concrete technical and practical idea behind a coin or token before doing any kind of investment. Check out our reviews at cryptowalletcheck.com or the relevant white paper with all technical details.
Currently, almost 2000 different cryptocurrencies are existing. In order to minimize the risk of no return, we also recommend to diversify your portfolio, which means you should invest not only in a single, but in different promising coins or tokens. Therefore, we provide you with all relevant market data on prices, market capitalization or fluctuation.
What is an exchange?
Once you are confident with an interesting cryptocurrency or token project, you need to find an exchange which enables you to convert your dollars, euros, yuan or any other local currency into cryptomoney. It’s our mission to simplify all relevant information for you. We want to enable you to find the single-best exchange which fits with all your individual requirements.
In order to find a convenient exchange it’s important to have an overview over different factors of interest: You should know the country of origin of the relevant company you are trusting, as well as their security standards and community trust. You might be interested in important questions regarding the scope of their services, the fees to pay or their customer service. Of course, you also need to find out if the exchange has listed your coin or token of interest.
We provide reviews with all relevant pros and cons. You have the opportunity to directly compare different exchanges to find your best match. You can enjoy our summaries and learn how to deposit, trade and withdraw on your exchange.
What kind of investor am I? How to manage my portfolio?
Gratulations! If you bought your coin or token of interest on an exchange of convenience, you are now an early investor into cryptocurrency and blockchain technology. Still, there are different types of crypto investors:
If you are taking advantage of permanent price fluctuations, you are a ‘daytrader’. In this case you can enjoy our reviews and learn how to manage your portfolio within the trading systems of your exchange.
If you just bought in and are not interested in trading, but rather betting on higher prices in the future, the cryptoscene calls you a ‘hodler’ — you are waiting. In this case, we highly recommend you to safeguard your investment, because you don’t need its daily availability like a daytrader. If you are ‘hodling’ we provide guidance to find a secure wallet for your coins.
What is a wallet?
A wallet is an equivalent of a bank account. The place where your coins are stored within the exchange is called a ‘hot’, ‘web’ or ‘online wallet’. These kinds of wallets are web-based and your private key is secured on the external server of a third-party. The biggest exchanges offer highly advanced security architecture, but in case of any cyberattack and potential loss of your investment you are not backed up legally. If your exchange gets hacked, it totally depends on the good will of the exchange if they would accept to repay your private loss. In order to not even risk a potential loss, we highly recommend to safeguard your investment via other wallets:
First of all, you could choose a so called ‘software’ or ‘desktop wallet’. In this case, you are storing your coins on your personal computer alone and have the sole responsibility. You need to download a wallet which is working with your operating system (Mac, Windows, Linux, etc.). You should protect your personal computer against any kind of cyberattacks. Also you should always safe your seed in multiple ways. There is usually no possibility to recover your wallet without. Mnemonic phrases are a very good way to remember your seed and avoid spelling mistakes.
Secondly, the same works for mobile phones by downloading a ‘mobile-wallet’ for Android, iOs or Windows. But if you lose your phone, your investment is lost as well if you don’t have your seed. Most of the mobile-wallets out there offer a Mnemonic phrase feature, so you don’t even have to generate it by your own.
Thirdly, there are ‘physical wallets’ like Casascius, where your investment is stored on a physical coin which contains a peelable hologram with your private key. Due to the case cryptocurrencies are not regulated yet, these kind of storage mechanisms are sometimes considered as counterfeit money and its future legacy is still unsure.
In order to reach the highest level of security, we therefore strongly recommend to use a ‘cold’ or ‘hardware wallet’, which enables the storage of your investment on a USB flash drive.
In certain cases you can also use a ‘paper’ or ‘print wallet’ which facilitates another offline storage solution. We don’t recommend paper-wallets for beginners as there is the possibility to capture your monitor if your computer is infected with any malicious software, which could in this case track your seed and steal your coins.
If you can’t decide which option is the best for, we just recommend to go with a hardware wallet. Check out our wallet-comparison to see which fits with all your individual requirements.