What you need to open a crypto wallet

Cryptocurrency investment is fast becoming a household name, especially among fortune builders and ambitious risk takers. While a section is purely driven by fear not put money in crypto, others are already doing it graciously and reaping big from their investments. I guess you are reading this post because you belong to the category of risk takers and fortune builders.

While you may be very much interested din starting your investment in a cryptocurrency; whether bitcoin, Coinbase, Ethereum name them, it’s important to know where exactly to begin everything. Just like in any other investment, there is a common procedure for stating investment in cryptocurrency.

Let’s try to diligently walk through what you are a first time investor in bitcoins need to have when starting your venture. The popularity of crypto may first look scary. In fact, it’s possible to even think that investing in crypto requires just outrageous sums of money that only rich people have, far from it. The requirements are simple. See here..

Personal identification documents required when starting crypto investments

Cryptocurrency investment and trading just like any other financial systems require to know their customers through a set identify verification process. As much as crypto is intended to skirt around the troubles with traditional currencies, it does not take away the need to ensure clean business.

It is not possible to  anonymously execute a transaction in cryptocurrency. In case you are thinking that crypto is god sent for committing crime without getting traced, then that is a false impression. You will need to be screened  by the cryptocurrency exchanges that you deal with until they satisfy themselves that your identify is not in doubt.

Over and above the need to offer crypto users a conveneinet way of buing and seeling as well as investmen, there is a bgeneral need to operate within basic  Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This is to protect you as an investor or customer from the ever increasing attepts by fradsters to penetrate and fleece crypto owners.

Ordinarily, whenever you create a digital wallet with a cryptocurrency exchange for the purposes of stating your journey with cryptocurrency, you will be asked to provide your identify confirmation in the form of  third part document such as a passport or national identity card. However, crypto exchanges try to use other modern verification processes to avoid appearing as if they are just a continuation of the traditional banks that would ordinarily ask for such physical documents.

Today, most crypto investors will ask for identification in the form of a Unique code sent to your registered device or taking a clear selfie. In any case, this process may look painful, its worth taking it for the safety of your crypto investments.

Need for a Bank account when investing in Crypto

A bank account from which money to buy the particular choice of cryptocurrency is necessary from the start. Remember, cryptocurrency is a new creation which means that an investor like you has to do a transfer of wealth from one form to the new form. For instance, you own land, private jet, gold mine et cetera somewhere. Your current form of asset may not be directly used to buy a cryptocurrency. Therefore, a normal bank account is required.

The need for a bank account when starting crypto investment journey does not mean a return to the traditional financial system that you otherwise seek to leave. No, it is just but a steppingstone to the crypto world. A bank account is what will link your fiat currency with the cryptocurrency exchanges so that they can take away from it money qual to the amount of crypto desired.

Stable and secure internet connection in crypto investing

The speed, and safety  of the network that you use as a crypto investor is of great importance. Nobody ever owns gold and walk with it down street on bare hands, never. Your crypto investment is so precious. Just in case you have forgotten, the craze and rush to get at least a share of the crypto keep rising by the day and so do fraudsters and identity thieves.

Being a digital or simply virtual currency, crypto’s cannot be withdrawn and kept in a lock and key safe at home. The currency is always out there, just sitting in your digital wallet in anticipation of a value increase or providing a means of online payment. You will obviously be interested in making a point to keep the money safe on the streets of crypto market.

For you who is largely into crypto for trading and gaining value from its volatility, a fast and reliable internet then becomes an indispensable friend. The value of crypto changes every other minute in response to what happens globally such as the Russia invasion of Ukraine for example. You will always see crypto traders sitting in front of these crazy graphs which may not be easy to understand for a starter. They are not just wasting time or lazy, the slightest fluctuation in currency value may mean a great loss or a clean profit. As a motivated crypto investor, you will soon need such graphs.

Safe storage for your cryptocurrency

The safe storage of your cryptocurrency should be something that bothers every investor. Once you put your money into crypto, your interest is just one-grow it so that it takes care of the rainy days. With the fraudsters becoming more intelligent by the day, the safety offered by crypto exchanges alone isn’t enough. Yes, they will proclaim how they work around the clock to keep your coins safe but this should not be just enough.

The place where everybody stores their crypto currency is a digital space called a wallet. The wallet can be operated by the very crypto exchange or a third party. There are two types of wallets to choose from which will determine how safe your currency is. One is the cold wallet and the other one is hot wallet. See more about cold and hot wallet here.