Am I Understanding This All Right? BTC Trading

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Shelldon

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I think I understand all of this, but in case I'm way off base, thought I'd lay out my understanding here and perhaps someone can correct me.

1. A token is a bitcoin or one of the other "coins" right?

2. Trading is done on an exchange like Luno.

3. So you would register on Luno, deposit some money, then purchase bitcoins at what ever the going rate is.

4. You don't want to leave your bitcoins on the exchange in case it gets hacked, so you transfer to a "wallet", like "bitcoin wallet".

5. If you want to trade your bitcoins, you transfer from your wallet to the exchange and do so.

Am I on the right path here?

Thanks
 
Token can be many things.

Bitcoin is a virtual coin (unit of measure)

Civic is a token. Ether is technically a token.
 
Okay so that's why sites show the value of token's tied to btc.
 
Shelldon said:
I think I understand all of this, but in case I'm way off base, thought I'd lay out my understanding here and perhaps someone can correct me.

1. A token is a bitcoin or one of the other "coins" right?

2. Trading is done on an exchange like Luno.

3. So you would register on Luno, deposit some money, then purchase bitcoins at what ever the going rate is.

4. You don't want to leave your bitcoins on the exchange in case it gets hacked, so you transfer to a "wallet", like "bitcoin wallet".

5. If you want to trade your bitcoins, you transfer from your wallet to the exchange and do so.

Am I on the right path here?

Thanks
Click to expand...

You don't actually need an exchange to trade bitcoin. Exchanges are a convenience for converting your bitcoin to fiat currencies like Rand, dollars etc. They do offer a level of security I guess. You can, however, exchange and trade bitcoin directly with other people without needing an exchange, see localbitcoins.com for example which connects buyers with sellers...
 
Shelldon said:
So all that's really needed then is a secure wallet?
Click to expand...

Yep... Of course if you choose to not use an exchange it might take longer to actually buy or sell your bitcoins because you have to find a buyer or seller to transact with, on an exchange you transact with the exchange. You can also buy stuff with your bitcoin of course, it's not just for currency trading
 
Ok so it seems that the best wallet from a security point of view is a paper wallet. What is the wallet most saffers use?
 
Shelldon said:
Ok so it seems that the best wallet from a security point of view is a paper wallet. What is the wallet most saffers use?
Click to expand...

I use mycelium personally, there's been a lot of talk about exodus lately too... Also hardware wallets like trezor are popular
 
So how does one buy or trade ethereum, qtum or others? You buy bitcoin and then shapeshift (is that the right terminology)?
 
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