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Hello again! Surely if you have reached Publish0x you no longer need this type of advice. If you are not yet a cryptocurrency holder and you are considering investing, then you should pay attention because many of us have gone through where you are going to go and have tripped over the same stones that await you along the way.
For me, the first important choice should be the exchange and wallet you choose to buy and store your cryptocurrencies. Like everything in this life it has its pros and cons and I am going to expose below what I see if you choose one or the other.
Centralized Exchange (CEX)
- If at any time you lose your access codes, you can recover your account by presenting all the documentation that matches the stored data.
- They usually have a very intuitive interface and are easy to use
- It can be said that being private companies, they have a plus in security
- The assets you keep there are theirs and are exposed to any government law that overloads them with taxes, expropriates or seizes them.
- To register you have to identify yourself and complete the verifications associated with Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter Terrorism Financing (CFT), something that breaks with the idea of ??a decentralized economy.
- They are more susceptible to hacking attacks.
- They all charge commissions. The ones that do not charge a commission per operation, operate with their own prices in which they obviously include, guess what?
Decentralized Exchange (DEX)
- Anonymity. When I say this, many will think that they do not need it. But I think that what is really not needed is to know at all times the financial movements of all citizens.
- You have full custody of your assets, something that is very attractive to me because I want the money to be mine and not the European Central Bank's.
- Choosing a DEX may require more advanced knowledge than a CEX.
- The liquidity of the exchange should be taken into account since they may have problems generating high levels of liquidity.
- If you lose your keys you lose your cryptocurrencies. It is something that I can explain to you with more words but not more clearly.
The best thing to do is always DYOR, do your own research. What for me is essential, for you may be unnecessary and vice versa.
Regarding wallets, which are the storage places for our assets, we can choose whether we store our purchases in the exchanges themselves, whether we store them in a separate wallet (there are many options that I will detail in another post) or whether we put them on the work in an exchange that gives us profitability for staking or for farming (I will also go into this topic later)
My humble advice is that once you have decided to start, do not be in any hurry. First get a lot of information in the way that is easiest for you (internet channels, blogs, investment pages in cryptos, etc...) and once you have already been well informed about everything, find out again in other sources. After doing this, nothing guarantees that you will get rich, but surely you will go faster.
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