CRYPTO EXCHANGES AND HOW THEY WORK PART 2
In the last post we discussed crypto exchanges and we said that there were different types of exchanges that do different things so you need to first decide why you want to purchase crypto:
***Long term holder of crypto - holding out until the price increases;
***Purchasing it to stake and gain interest (this could be long term or short term depending on the length of time you choose to stake)
***Short term - to exchange it for other cryptocurrency or for shopping and living expenses.
When you know why you’re investing, and you’ve chosen the appropriate exchange to do business with, then you move on to the next step.
You will first be required to open an account and go through a verification process. Some exchanges will need you to verify your email and phone number (they will send you an email and a text message and you respond to it, so they know that’s your phone number and email address). Some exchanges add another layer of protection and will ask you to upload a copy of your drivers license or other form of identification. (There are some exchanges that will allow you to remain nameless, but we’ll discuss those types of exchanges in another post).
This process of verification is known as KYC (Know Your Customer). They just want to know who they’re dealing with, and they’re making sure that their platform is free from money laundering but the KYC process is also for your protection as well! Sometimes the verification approval is same day/immediate, but on the rare occasion that it takes longer, it probably won’t be much longer than overnight.
After you’ve been verified by the exchange, you can then purchase crypto. Remember that there will be fees (different platforms charge different amounts). Also remember that if you’re buying it from an exchange where you don’t have your own wallet and private keys then technically you don’t really own the asset. So find an exchange where you can.
Also remember that the crypto world comes with its own share of risks but also great rewards, so 2 things are very important:
(1) Get as much information as you can about how things work in crypto world/find a Mentor;
(2) This is more important than #1: AIM TO BE LED BY THE SPIRIT OF GOD!
Romans 8:14 (NKJV) - For as many as are led by the Spirit of God, these are sons of God. (That’s us!)
Plan on being led by God’s spirit with every move that you make, not just in crypto world. The more you work on your relationship with Jesus, the easier it will be to follow the leading of His Spirit!
See ya later alligator.😊 Peace out!✌🏾✊🏾
Copyright ©2022 Sherma Jacqueline Felix. BLACK ADVANTAGE Publishing™. The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestion in this post.