Certain digital currencies are already at peak popularity among users from all corners of the world, this is actually what’s happening with Bitcoin, the world’s first cryptocurrency launched in 2009. However, the smell of business has reached more investors who invented other digital currencies following the lead of Bitcoin’s creator(s). So, we can find today a pretty abundant number of cryptocurrencies.
Many people consider cryptocurrencies an alternative means of investment. Why is that possible? Simply because cryptocurrencies are easy to access and you don’t need that much to get started. But there are also hidden dangers over the corner that all investors or potential investors in the next future should know since day number one.
South African Casino Customers Choose Cryptocurrencies
Although cryptocurrencies differ from traditional investments, several people already choose Bitcoin and a few more types of digital currencies to pay for online services. In South Africa, a leading country in the African gambling segment, you can find plenty of casino customers who use cryptocurrencies at online casinos instead of traditional money. Digital currencies are also used for other gambling activities like sports betting online.
This is a sign that shows the level of penetration of digital money into the actual habits of South African users. Another very diffused use of cryptocurrencies is for buying online items. Certain e-commerce platforms already accept cryptocurrencies along with other traditional methods of payments. If you are acquainted with eBay, for example, you may find individual vendors that are available to accept cryptocurrency payments in alternative to bank transfer or PayPal.
Things To Know For Starting An Investment
As you can see, average South African users seem to be quite well familiar with cryptocurrencies. However, when it comes to starting a financial investment, it’s always recommended to check basic rules and knowledge of how the investment system works. Beginners should not let the easy availability of Bitcoin (or other currencies) carry them like the wind can take a leaf away.
We want to give you a few basic tips on how to invest safely, what you should do, and what you should never do with digital currencies. There are actually many fake myths that we still have to eliminate.
- You need a specific platform
You can’t use a traditional investment platform to trade Bitcoin or any other digital currency. You have to use a crypto trading platform to access cryptocurrencies. Also, you can’t invest in tax-advantaged accounts, which means that you are responsible for your income taxes on your investments.
- Learn about cybersecurity
Bitcoin and all crypto payments aren’t as safe and sound as traditional methods. Online financial transactions always look easier than handing out true money, so keep strict control over your actions and protect your coins the same way you do for your real-world money. Security is a hot topic in trading money online: keep all your passwords and credentials in a safe place and if you are easy to forget them, find a way to correct this dangerous habit. You may write the credential on a paper, for example.
- Digital money isn’t insured
If a financial institution like a bank fails, you have the right to get a reimbursement. But if a trading platform is hacked and someone steals your coins, you have no way to get your money back. That’s the darkest truth about cryptocurrencies. However, there’s a big exception in the wild jungle of digital investments with Bitcoin which is Wealthsimple Crypto that offers cold storage insurance coverage to their users.
- Create a crypto wallet
One of the smartest ways to protect digital money is to create a crypto wallet. You can store your coins in this virtual wallet without leaving a coin that is unused on the trading platform, which is a vulnerable place to hackers. You may decide to install the crypto wallet on your device’s hard drive or you may want to buy a physical hardware wallet.
- Transaction fees for crypto users
Consider that all transactions made with cryptocurrencies come with specific fees. When you transfer your digital coins, for example, from your wallet to a trading platform, you pay a small transaction fee. Also, this transaction fee can vary according to the time you order the transaction and the amount of money you move from one place to the other one. The fee you pay is because of the blockchain: every time you move Bitcoin, the transaction is added to the blockchain, that’s why the fee varies based on the market condition and size of the transaction that you order.
Finally, keep in mind that digital money is also subject to income taxes and coin-conversion fees, which is something most beginners seem to ignore completely.