By Lumai Mubanga. email@example.com
To deal with Bitcoins successfully, you need to understand what a wallet is and what wallet mechanisms are in place. There is a lot happening in this sector that may leave many confused. A certain amount of level headedness is required to minimize this especially for those awakening to the demands and potential payouts that trading crypto currencies offer. What are some basic good practices?
It may not be easy for new comers to begin mining bitcoins or join some mining pools. These avenues require huge investments and maybe prone to Ponzi schemes. The best practice and the easiest is to buy bitcoins through exchange platforms or bitcoin ATM machines. Again, caution is important. Whichever method you choose to buy bitcoins, you still need a bitcoin wallet.
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A link below shows a short vide on how this is done.
Second best practice method of getting bitcoins is through exchanges. Bear in mind that there
are two types of exchanges, centralized and decentralized. What is the difference? Centralized
exchanges are the easiest to use and access but have one downside. They are a single point of failure and maybe vulnerable to hacks. However, there are millions of successfully traders on these exchanges including this author. Examples include kraken among others.
On the other hand are the decentralized exchanges such as Bitshares and Bitsquare. On these platforms, users conduct trade directly between peers by creating proxy tokens and are in most case trustless. He down side is that they may suffer liquidity problems. Bitshares blockchain for example is an open source development and financial management platform that allows you to create a free account. You may find it useful in trading the USDT earned from Finmail with other fiat currencies.
Bitsquare (Bisq) is also open source, peer to peer and comes in handy to have your USDT easily converted to fiat currencies. No registration is required, a truly autonomous platform.
Snapshot of a decentralized Exchange
Finmail highly recommends using centralized exchanges when converting USDT to fiat currency. In their FAQ section, they recommend Kraken and Huobi depending on your location. These platforms employ the KYC philosophy, which requires clients to register personal details. This has many advantages among them fraud prevention.
Ultimately, the user needs to do research on these platforms, make an informed decision, and perform trading activities based on knowledge.