3 tips for your first steps with cryptocurrency

Date: 08 Jul 2021

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Digital currency has been at the forefront of public interest since 2009 when Bitcoin was first launched; nowadays, it is even more desirable due to the introduction of NFTs. During last year we, at Citywealth, have hosted several discussions with specialists on the topic and are glad to share some insights into the industry, from how to start to buy cryptocurrency to what it can be used for.


#1 Is a Bitcoin Wallet required?

A Bitcoin wallet is the address where the purchased currency is sent after the transaction is completed. Similar to regular coin purses, Bitcoin wallets are places to store currency virtually. You can access them on your phone or computer. For a layer of extra security, you can opt for a hardware wallet, which allows you to store your Bitcoin in a place disconnected from the Internet. Moreover, opening different wallets is free and to move your Bitcoin into or out of said wallets costs only a minimal fee.

If you are wondering what even are the benefits of having a Bitcoin wallet, you should know that cryptocurrency has a reputation for anonymity. You need a wallet to transfer your currency.



#2 How to purchase Bitcoin?

As mentioned above, your most likely destination is a Bitcoin exchange (yes, you may have seen in-person Bitcoin vending machines, but these are mostly novelties).

While in-person Bitcoin vending machines exist, they are mostly novelties. To be able to purchase Bitcoin, you will need to choose an exchange. Citywealth recommends the Coinbase Wallet. After creating an account and entering a payment method, you will be required to provide identification a driver’s license, ID, or passport.

After you’ve been verified, you can start buying Bitcoin with your chosen payment method, transferring it to your personal wallet and watching its price fluctuates.



#3 What can you do with Bitcoin?

Some vendors already started accepting it as payment; these range from small shops to a Swiss ski resort. Bitcoin is usually used as an investment or store of value, similar to gold.

Some skeptics doubt the cryptocurrency will become a universal currency any time soon. But Bitcoin as a means of payment got a boost this year, when PayPal Holdings Inc. announced in October that it would allow customers to use it and other virtual currencies to shop at the 26 million merchants on its network.

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