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Cryptocurrency (Wallet Types (Software Wallet (These are your personal…
Cryptocurrency
Wallet Types
Software Wallet
These are your personal wallets that you have on your computer or phone. You send money from your exchange wallets to this wallets when you want to store or use funds that you are not trading with.
Hardware Wallet
These are the safest wallets because they are not stored on anything with an Internet connection, so they are "hack proof". You hook them up to your computer via USB, transfer the funds to it and put it in the safe. These are good for large amount that you want to save longterm.
Exchange Wallet
These are your wallets that are on the exchanges. When you buy or sell currency, the funds will be deducted from or deposited here.
Exchanges
Bittrex
Bittrex is good if you want to buy alternative (alt) coins. There are many different coins and tokens that use blockchain technology to perform different functions. You can research them on cryptocompare or coinmarketcap.
Here is the site link. https://bittrex.com . There was a phishing site that was built to look like bittrex.
GDAX
Coinbase created GDAX which allows for more trading control and lower fees. Here you can see bid and ask prices and make limit buys and sells.
Once you set up coinbase, set up your GDAX account. When you transfer USD to coinbase, it will automatically show up in your GDAX exchange wallet (if it does not show up, there is a function on coinbase that say something to the effect of "send funds to GDAX". Then you can buy Bitcoin, Ethereum or Litecoin at a better price.
From here you can hold these coins for the long term or use them to buy other coins or tokens on Bittrex
Coinbase
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This is the main exchange for the U.S. Some exchanges can't accept USD because they are not approved by the SEC.
You'll have to get verified and link your bank account to transfer USD. Once your money is cleared it will go into your USD exchange wallet.
Coinbase makes buying easy but they have high fees and you have less control over your transactions. You can only buy at market price on Coinbase.
Research
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A great resource to track trading volume, market caps, etc...
Currency Types
Coins
The code built into coins only allow currency functionality. These are good for daily transactions that don't need to be automated.
Tokens
Tokens are coded so that they can perform other functions, referred to as "Smart Contracts". Smart contracts were introduced by the Ethereum token (which is why it has longevity).
Example of a smart contract: Your autonomous car has a smart contract setup with the city that allows the city to deduct an agreed upon amount from your "Ether" account when your car passes the checkpoint of a toll road. The difference between this and money being deducted from your bank account is that you'll no longer need a bank account. The funds will come directly from your "Wallet". Hence: No more middleman, no more bank fees.
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