Cryptocurrency seems like such a mystifying concept, right? Many struggle to understand the technology that generates it and the wondrous opportunities that it holds.
Before you decide to participate in the crypto trade scene, there is a towering list of aspects to consider. For starters, have you identified which crypto exchange or broker suits your trading needs? How will you be storing your crypto funds? We cover all the major questions here at the Vaultavo beginners guide so that you can find the best crypto trading account for you today!
How does Cryptocurrency work?
So we expect you to understand what cryptocurrencies are, however if the concept behind the digital asset still seem unfamiliar to you, be sure to go back to the previous beginners guide section of our Vaultavo trading academy to find out more.
Now that we have that out of the way. How does crypto work? Why self custody crypto? Well, cryptographic entries are recorded on a public ledger known as blockchain which is a record of all the transactions performed by crypto holders.
The units of cryptocurrencies are generated through using sophisticated computer powered hardware that solves complicated math problems, called mining. This process plays a critical part in the blockchain ledger’s development and maintenance. Even though Bitcoin has been in existence since 2009, many cryptocurrencies along with various applications built on the blockchain technology have stepped into existence. Thus, we can expect more digital asset custody solutions in the near future.
If crypto is for you and you are looking to sign up with a crypto trading account, there are a few pointers we recommend you look at before doing so. Go visit our Vaultavo beginners guide, to find the answers to all the main questions including how to fund a crypto trading account.
What to consider when choosing a beginner trading account
First things first, the exchange you prefer to open a beginner trading account should list the cryptocurrencies you are interested in, especially for investors.
The main goal is to maximize profits and stamp out risks. A promising investment strategy is portfolio diversification which is the act of allocating your kitty to many different cryptocurrencies in effort to eliminate risk and enhance gains. To do that, you’ll need to make use of the most secure custody solution available.
When choosing your beginner trading account, looking at the diversity in available coins alone is pretty much useless when there are no crypto trades ongoing. Typically, a joint-custody crypto trader would expect a buy or sell order to be filled at the specific price the trade was placed. That is unfortunately not always the case, insufficient volume markets generally cause slippage.
Slippage is when the price of which your filled order does not match the exact price at which the order was placed. This phenomenon is caused by many other factors, however it is often worse in a very low volume market. Trading under these circumstances, buy and sell orders could take an unnecessarily long time to execute due to the lack of trades on the other side of the market, causing a mismatch in prices. Therefore, any crypto trader should opt to open a crypto trading account with an exchange with high volume markets and state of the art cryptocurrency security.
Additionally, you want your preferred crypto trading account to offer trading features such as limit orders, then a hard price and the margin wanted can be set to fend off slippage.
There are mainly two types of fees you are charged with when buying and selling crypto, trading and withdrawal fees.
Trading fees are mainly implemented in two ways. Fees may be charged as a fixed percentage on the amount of buy and sell orders, or fees may be charged a different percentage according to whether an order is maker or taker. Always determine transaction methods, such as biometric smart-cards, and the costs associated with using them. When an order adds liquidity to a crypto exchange, it is considered a maker. Liquidity is created through buy and sell orders that aren’t executed immediately. This makes it easier for other traders to buy and sell instantaneously when the condition is met. Takers, therefore, are the opposite as they remove liquidity from an exchange. Generally, taker fees are marginally more than that of makers.
When opening a crypto trading account you ideally want a crypto custody solution with the lowest fees. However, you have no full control over whether your trade will be a maker or a taker, therefore do not dwell on the specifics of trading fees too much.
Withdrawal fees however, could be the make-or-brake when choosing an exchange to open a crypto account. If you are considering moving crypto to third party wallets or a custodian service such as Vaultavo, it would be best to opt for an exchange with lowest possible withdrawal fee percentages.
Arguably one of the most common mistakes in cryptocurrency for beginners is falling victim to the idea that trading crypto is easy money. The crypto market is volatile, complex and simply just unfriendly to those that are still unfamiliar with crypto trading.
Many trading platforms, such Binance and Coinbase allow users to open demo accounts which is a great way for beginners to test their knowledge and gain experience trading crypto. Not only is a demo account highly beneficial for beginners, experienced traders can also make use of this feature when testing new trading strategies or even algorithms for trading bots.
What you need to open an account
After you settle on your preferred crypto exchange, opening a crypto trading account is a cup of tea. During the sign-up process the following information may be required:
- Full name
- Date of birth
- Identification number
- Email address
- Phone number
- Address, plus utility bill as proof
- Financial/banking details
- Copy of ID, passport or driver’s license
- And lastly, a self-portrait photograph
As expected, compliance and security are the main competence areas for all leading crypto exchanges. Therefore the final step for opening a crypto trading account, a ID, passport or driver’s license along with a photo is required in order to complete an identity verification process. Generally this could take some time, however once your crypto trading account is verified and operative you are good to go for as long as you desire.
Where to keep your crypto safe
With similar importance to picking your preferred exchange to open a trading account, how should you store your crypto funds? This question relies on whether you prefer a hot wallet or cold wallet. Ideally you want to compare the crypto wallets on the basis of your trading and investing preferences.
Hot wallets are the most common, they are connected via the internet and offered by many custodian platforms which makes it faster and easier for users who trade regularly. Users that make use of hot wallets trust the platform’s encryption to secure and store their private and public keys safely. However despite the top-notch security encryption, hot wallets have one significant drawback. Due to it being connected to the internet, they will always remain vulnerable to cyber attacks. It is also a form of joint-custody crypto which may not appeal to everyone.
Cold wallets are the preferred storage method for those who want full power over their crypto. This storage is the opposite to hot wallets, as it is kept offline making it unreachable to cyber security threats. Cold wallets use a physical medium to store private keys such as a USB-device known as a hardware wallet. While cold wallets provide the solution to the possible threats looming via the internet, it also comes with its own drawbacks. They are impractical to everyday crypto users as it is significantly more complicated to transfer cryptocurrencies due to its offline nature.
Crypto traders face the challenge of finding a storage service that offers guaranteed security along with ease of use in an efficient way. Do you opt for the accessibility of a custodian hot wallet or the security of a cold hard wallet?
Well here at Vaultavo we have identified the key ingredients that we come to expect from a great crypto storage service. We offer you the world’s first biometric enabled digital asset custody smart card that ensures easy and convenient transacting. Combine that with the beyond bank grade technology of our Card Hardware Security module (HSM) that guarantees 100% security. Our Vaultavo Card and HSM combination offers you the solution to having to choose between either accessibility and security in a storage service.
The generation Vaultavo Card contains a microchip that stores and creates the private key. It also includes a fingerprint reader along with an E-ink display in order to verify and prove transactions via biometrics. The state-of-the-art card comes with a rechargeable battery and is compatible with computers, mobile phones and with ATMs and POS devices in the not-too-distant future.
The private key generated has a high degree of security and cannot be hacked, the execution and verification of a transaction need to be biometrically authenticated by both the Vaultavo Card as well as the fingerprint of the cardholder.
No need to fret when losing the smart card, Vaultavo is putting an end to the common “one key only” concept. Lost or stolen cards are easily re-issued because with Vaultavo your fingerprint is the key.
Looking to open an account with us?
If you are looking to partner up with Vaultavo to compliment your own crypto trading experience with guaranteed cryptocurrency security and unprecedented convenience, be sure to head over to the “Contact Us” section on our homepage. Simply fill in the contact form and we will get back to you in no time.
Simply sign-up by following our step-by-step guided procedure which includes a signup fee along with our generous monthly fee. Receive the Vaultavo Smartcard via courier, perform the secure biometric enrollment procedure on the card and set your relevant transaction rules.
There you have it. Opening a crypto trading account with the most secure custody solution is fairly simple. Just make sure you have any form of identification and proof of address along with your personal information and you are good to go.
Be sure not to rush your decision on choosing your preferred platform. Rather make sure that you are shaking hands with the best crypto trading platform so that you have the trading edge for your crypto endeavors.
Opening an account FAQs
What do I need to do to open a beginner trading account?
Cryptocurrency has exploded onto the scene in recent years and more people are joining this bandwagon day-by-day. It is natural to be hesitant with opening a beginner trading account, as you might feel like it would prove too costly or the effort is not worth your time. Well, we can confidently say that signing up with most digital asset custody solutions is fairly easy. Here at Vaultavo we discuss everything you need and cover all the tips and tricks to help you find the best beginner trading account for you.
What is the best crypto exchange for beginners?
This is definitely a question worth asking. Don’t we all want to find the best crypto trading platform, however this could pose quite the challenge for many beginners. Here at Vaultavo beginners trading guide, we do a deep dive on all the key aspects of what makes a crypto exchange great so that you do not have to. Head on over and find the best crypto custody solution for yourself today!
Are crypto wallets safe?
This entirely depends on the wallet of your choosing. The explosion of the crypto scene is unlike any other industry in the world. For that, now we find ourselves among countless crypto exchanges offering their wallet services as well third-party wallets. However, which options do you opt for? Because with a wide selection of wallet options comes numerous rogue and fraudulent wallets not capable of safeguarding your digital assets. Our beginners guide of crypto trading is here to help, we go through all the major aspects of what you should look out for in a beginner trading account and why Vaultavo’s biometric smart-card is the best option.