anyone that's purchased crypto before has performed a very simple cryptocurrency trade but that's barely scratching the surface of the market and the amount of options out there in this guide we'll talk about how to make your first crypto trade and touch on some of the more advanced aspects of the process the first trade almost everyone makes is a fiat - crypto trade exchanges act as an on-ramp for users into the space depending on location and jurisdiction exchanges sell cryptocurrency for a variety of fiat currencies make sure to do your research into the most reputable exchanges available in your area some things you should keep in mind are the exchanges reputation their fee structures and their security essentially make sure that you're aware of any fees the exchange will take from your transactions and how they'll keep your funds secure we highly recommend working with exchanges that offer two-factor authentication generally you don't want your password being the only thing protecting you from losing funds note that exchanges in most jurisdictions are required to verify your identity and perform certain know your customer and anti-money laundering checks so be aware that you may have to send the exchange proof that shows you are who you say you are once you're on the platform and they've accepted your funding you can make your trade for whatever coins the exchange offers congratulations on your first trade behind the scenes the exchange will have created a wallet for you where your funds are stored it's now up to you whether you want to keep trusting the exchange with those funds or move them elsewhere we won't go into depth on all the different types of wallets here because we already have an excellent guide for that but what you should know right off the top is the difference between a hot wallet and cold storage once you know the difference you can watch our wallet guide and decide where you want to keep your funds a hot wallet is like the wallet you carry around with you day-to-day it isn't particularly safe but it's convenient and gives you easy access to your money cold storage is a lot more like a savings account the money isn't on you at all times so it's more secure but impractical to use day to day an example of a hot wallet is your crypto currency exchange it's a software wallet that's always online and requires password input to access this makes it vulnerable to attack but very easy to reach your funds the cold storage wallet would look like a piece of hardware that's separate from your computer it is always offline except for when you plug it in to access it this means that while it is offline it is totally safe from attackers again we go much deeper into different types of wallets but you should decide whether you'll be using your crypto frequently or locking it away then you can choose a hot wallet or cold storage solution that's appropriate for you whatever wallet that you choose will provide you with a public key and a private key the public key is the address that you will always use to receive funds when you withdraw from an exchange and they ask for an address it's your public key that is required you're free to share it and use it however you like your private key should never under any circumstances be shared this trading method is decentralized and you will join this any where form the world.
if your private key is leaked or discovered then your funds can be stolen and used without your permission you will lose your funds and you won't be able to get them back so write it down keep it somewhere safe and secure and do not share it once you have your crypto stored in an appropriate place you're set up to engage with crypto 2 crypto traits these work very similarly as Fiats a crypto trades but you're working within blockchain ecosystems this means that you would take whatever currency you purchased with your fiat let's say Bitcoin and trade it directly for another currency like ether there are many exchanges that offer these services many are centralized but some are not the same concepts as noted earlier are important here make sure you look into the exchanges history and security to ensure that you're comfortable with who you're dealing with with these two types of trades and some practice and researching for reputable service providers you're all set up to purchase and trade for any coin you like in our next guide we're gonna dive more into technical details like how to read charts and what sorts of terms you should learn
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