The Significance of Decimal Places of Coins and Tokens
As I am aware that many people may not have ever used cryptocurrencies, coins or tokens before, let alone even bought any, and as such in today’s news story I think it is worth mentioning the significance and importance of understanding decimal places regarding any coins or tokens you may be about to buy.
Most coins and tokens that you are going to be able to purchase, possibly through an initial coin offering or token or coin generation event or even when purchasing them via a digital currency exchange, can be purchased in any quantity.
However, much like when you use for example Euros, Dollars of GBP in a store any goods you buy will be on sale often for an amount than is less than one single Dollar, Euro or Pound, such as when you buy a newspaper for example that costs 0.75.
What you will therefore find is that most coins and tokens will have decimal places too much like fiat currencies, but the number of decimal places can be greater in number than just the two that are available on those fiat currencies.
That does of course mean therefore when you set about buying for example Bitcoin or Ethereum you are not going to be forced to have to buy one single unique of those cryptocurrencies, which in the case of Bitcoin would be very expensive, you can instead choose to purchase a smaller unit of one single Bitcoin or Ether.
Safe Storage of Your Coins and Tokens
One thing that does confuse many first-time buyers and users of cryptocurrencies is the actual digital wallet you will need to download or make use of to access your coins and tokens.
As such I will give you a quick insight into the two different types of digital wallets that are available, and let you know the risks associated with both.
When you sign up to make use of a digital currency exchange, there may be a requirement to use the digital wallet available at those exchanges as the way your store your cryptocurrencies. But you are of course able to send them to any other digital wallet at any time.
However, when you do choose to keep your cryptocurrencies in such a digital wallet, they will be at risk if for any reason the exchange goes out of business gets hacked or experiences any type of problem.
Therefore, you are going to be much better off making use of a digital currency wallet that does not physically store your coins and tokens but is used merely as a way of accessing them, meaning the coins and tokens are stored on the blockchain and are not held by any third party, which they are when you use a digital currency exchanges wallet.
If you do have access to your digital wallet when using the latter type of digital wallet then you can access your coins and tokens without any interference of a third party company or organization.
Not all That Glitters is Gold
Finally, I think a timely reminder is in order if you are about to set out and invest in a range of different initial coins offering, token generation events of even simply buy into any of the established cryptocurrencies, and that is not everything that glitters in the cryptocurrency environment is gold!
One thing that any first time and inexperienced user of cryptocurrencies, irrespective of the ones they choose to make use of is volatility, and as such you do need to ensure that you are always 100% aware of the risks associated with buying, using and selling cryptocurrencies.
The price of the ones you do buy, and it doesn’t matter which ones you do buy into are going to fluctuate often wildly, and as such their value will rise and fall second by second, and it is often down to good timing on behalf of a buyer of any cryptocurrency, coins or tokens as to whether they do secure a good price for their holdings.
But as cryptocurrency prices do fall and rise all the time, therein lays your chance of making a profit if you are using them for investment purposes, and it will be down to skill, good judgement and probably more luck than anything fi you do manage to lick in a profit from those investments, but there are certainly fortunes to be made but there are sadly also fortunes that will be lost too!