With any virtual asset purchase, stick to the basics of the investor

Along with the financial opportunities they provide, virtual assets have become part of common financial transactions for a growing segment of the world’s population. In the report ‘Demystifying Crypto: Shedding light on the adoption of digital currency for payment in 2022A’ by Checkout.com, it is mentioned that more than half of the population of the UAE are using digital wallets for the first time and want to use digital wallets. virtual assets for payments.

In the United Arab Emirates and Saudi Arabia, 45% of 18-35 year olds say virtual assets should be used for payment, not just investment. When it comes to merchants, 70% believe the speed with which payments and settlements are facilitated has the potential to revolutionize their business models.

The same study found that 77% of businesses that support virtual asset payments saw an increase in cross-border sales.

While the reverse may also be true, investing in virtual assets (or any other asset, traditional or digital, for that matter) is best approached with caution. New investors tend to invest when the market is bullish and avoid investing when the market is bearish, when it should be the other way around.

The first step in investing in virtual assets is to choose a regulated exchange. In the region, where the market for virtual assets is in its infancy, there are not too many of them. Choose an exchange that has a solid reputation for transparency and has the full support of regulators.

Trading fees can also vary, so select the exchange that is, one, transparent with its fees; and two, those who charge the lowest in the market. Additionally, it would be interesting to know if exchanges are able to exchange virtual assets for hard currencies.

Once the exchange is chosen, create a digital wallet. This will be the “digital space” where you can store virtual assets. It should be backed up with a private key, which should never be shared and physically stored in case this information is hacked or forgotten.

For those who are just beginning their journey of investing in virtual assets, it is always best to start small and only invest what you can afford. The most savvy investors look far ahead and think longer term rather than aiming for immediate returns.

About Troy McMiller

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