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Mining City Reviews How to Buy and Sell Bitcoin
Every year, more and more people are diving into the world of Bitcoin. If you’re interested in buying some of your own, the process might seem intimidating. What’s with all of these exchanges, wallets, and other services?
We’re about to break down the nuts and bolts of trading in Bitcoin. We’ll talk about how to buy it, how to sell it, and how to store it securely. And while we’re talking about Bitcoin, in particular, keep in mind that other cryptocurrencies work much the same way. So if you’re interested in Ethereum, Litecoin, or other currencies, there won’t be any major differences.
Choose a Bitcoin Wallet
Before you buy your first Bitcoin, you’re going to need somewhere to store your coins. Think of a crypto wallet as a bank account. It’s not quite the same, but it's a place where you can keep your cryptocurrency without anyone else being able to access it.
There are two main types of Bitcoin wallets:
Soft (hot) wallets: A soft wallet, sometimes called a hot wallet, is a software-based wallet. These wallets are internet-connected, and frequently take the form of a smartphone app. These are generally secure, but there have been some high-profile cases of soft wallets getting hacked.
Hard (cold) wallets: A hard wallet, or cold wallet, is a physical device that stores your cryptocurrency. These are built like a USB drive, and they’re exceptionally secure since you can’t access your cryptocurrency unless the drive is plugged in. Then again, if you lose your hard wallet, your crypto is gone forever.
If you want to use a soft wallet, there are plenty of options. Most crypto exchanges offer a wallet along with your account, although that’s not always the case. Some, like Coinbase, let you use their wallets even if you’re not using their exchange.
As for hard wallets, there are a handful of established companies that are a cut above the rest. Two of the best are Trezor and Ledger, both of which have been producing high-quality wallets for several years.
Configure Your Bitcoin Wallet
When you’re configuring a soft wallet, the process depends on the type of wallet you’re using. Wallets hosted by major exchanges are typically accessed with a username, password, and two-factor authentication. Depending on the exchange, you might have to set up an exchange account at the same time.
If you’re setting up a soft wallet with a third-party provider, you’ll have to take some more steps, but the process is generally considered more secure. Instead of a simple username and password, you get a randomly generated private key, which is a string of 10-15 random words that act as your password. This is very difficult to hack, but you really want to write down your private key. If you don’t, and you forget it, you’ll be permanently locked out of your wallet.
Hard wallets work much the same way, although the private key is typically longer, with as many as 25 randomly generated words, as well as a PIN number. You’ll also have to set up a companion app, either on your computer or your smartphone, to work with the wallet.
Some hard wallets, called paper wallets, add an extra layer of security. With these wallets, both the public and private keys are printed on a piece of paper. Without this information, the wallet cannot be accessed. By requiring more information, these wallets are all but impossible to break into. Then again, the piece of paper is yet another thing you could possibly lose.
Regardless of what type of wallet you choose, you won’t be able to make purchases directly from your wallet. Instead, you’ll need to link it with a bank account, or with a payment service like PayPal or Stripe. To link your accounts, you’ll have to provide government-issued identification.
Choose a Mining Farm or Create Your Own
A Bitcoin mining farm is an array of computers that are specifically designed for crypto mining. These are typically professional operations, with large server rooms and hundreds or thousands of computers. You can also create a home mining farm, but you need to make your system as energy efficient as possible, or you’ll spend more on your electric bill than you earn in cryptocurrency.
Hashpower is the computing power needed to generate cryptocurrencies. This is the product and service that Mining City offers its customers. Hashpower provided by companies like Mining City is used to mine Bitcoin (BTC) and other cryptocurrencies.
What is Mining City?
Mining City is a global platform that offers its members hash power to mine cryptocurrencies. Hash power is the electrical and computing power needed to mine crypto assets and generate cryptocurrencies. Hash power provided by Mining City is used to mine Bitcoin (BTC) and other cryptocurrencies.
Mining City members do not have to worry about buying or maintaining expensive mining equipment, nor do they have to worry about high electricity bills that they would need to pay if they were mining on their own.
Is Mining City Legit?
Whether you are looking for a platform that provides mining plans or software to secure your Bitcoin, how can you tell if a cryptocurrency player is legit? Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets. An example of Mining City’s commitment to compliance is its recent implementation of KYC, AML, and other compliance check processes.
Choose a Crypto Exchange
Now that you’ve set up your wallet, you’re ready to choose your exchange. If you’ve already set up your wallet with an exchange, this step is easy. But if not, you’ve still got to do some shopping around.
For your own protection, it’s highly recommended to only use exchanges that are regulated by the Securities and Exchange Commission (SEC). Some of the most popular SEC-regulated exchanges include:
When choosing an exchange, you’ll have to do a little bit of research. First off, take a look at their security policies, and how they keep your Bitcoin safe. Also, take a look at their insurance policies, so you know how much you’ll get compensated for hacks or other failures.
Another thing to look at is what kind of cryptocurrency the exchange supports. Pretty much every exchange allows you to trade Bitcoin, but if you’re investing in a more bespoke cryptocurrency, make sure to choose an exchange that supports that type of currency.
Finally, keep in mind that crypto exchanges are governed by Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. At some point in the signup process, you’ll have to provide proof of identification.
Now that you’re on an exchange, you’re ready to start buying and selling. That said, there are a few terms you should understand before you start executing any trades.
Market orders are orders to buy or sell a certain amount of Bitcoin at the current price. This is a straightforward purchase or sale and takes only a few seconds.
Stop orders are when you set a price where you want to buy or sell your Bitcoin. The purchase (or sale) will be executed when the market price rises (or drops) to the price you set.
Limit orders are offers to buy or sell at or above a specific price. The market can see these offers, and someone could take you up on your offer at any time. This can be useful when the market is trending down, but you’re confident that the price will eventually recover.
You may see other types of orders available, such as take-profit and stop-loss orders. But these are the three basic varieties you need to be familiar with as a beginner. Now all you have to do is decide where and when to invest your money.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes