February 23, 2022 3:35 pm in Crypto

A Beginner’s Guide to Crypto in Florida

Governor DeSantis has stated that he wants to make Florida a crypto-friendly state. The governor proposed programs to make Florida friendly to bitcoin innovation. Are you among those thinking of investing and using crypto in Florida?

Governor DeSantis spoke about enabling businesses to pay state fees using bitcoin and other cryptocurrencies. This is to encourage more investments in cryptocurrency in the state.

Cryptocurrencies are digital assets created by computer networking software and enable security of ownership and trading. These digital assets are supported by blockchain, a technology that keeps track of who owns what and maintains a record that cannot be tampered with.

Decentralizing public blockchains means that they do not operate with a central authority such as the government or bank. Cryptographic processes, a term from which comes cryptocurrencies, are used by developers to prevent fraud. These processes are meant to address and avoid the issue of attempting to double spend and making copies of holdings.

Coins or tokens refer to individual units of crypto depending on the use as you can use them for a variety of transactions, including;

As a means of exchange for goods and services
As a store of value
Running computer networks that carry out complex financial transactions

Bitcoin, for example, is created through a process called mining. It is an energy-intensive process in which complex puzzles are solved using computers to verify the legitimacy of the transactions on the network.

Cryptocurrency Options

In most cases when people hear about crypto what comes to their mind is bitcoin. However, there are other crypto options besides bitcoin. Here are some of the bitcoin alternatives you can choose to invest in.

Ethereum is an improved version of bitcoin as it is commonly used to carry out more complex financial transactions than those supported by bitcoin.
Dogecoin– It has grown to be one of the most valuable cryptos despite having started as a joke
Solana– Emphasizes cost-effectiveness and speed.
Stablecoins– designed to stay stable in value compared to real-world assets like the dollar.
Cardano
Tether
Polkadot
XRP
BNB
Terra

The bitcoin alternatives are not limited to this list.

How To Buy Cryptocurrency

Buying crypto is not as hard as you may think. With a little bit of guidance, it is a straightforward process. Buying cryptocurrency can be summarized into four basic steps.

Decide Where To Buy

There are many ways to buy crypto with the centralized exchange standard, easy and accessible, especially to beginners. Third parties oversee transactions for customer confidence of what they are paying for. Centralized exchanges sell crypto at market rates. You can also buy from online brokers, but this option is for investors accustomed to traditional brokerage accounts. Online brokers that you can work with include Robinhood, Tradestation, Webull, and SoFi Active Investing. Despite being easy to use, centralized exchanges are susceptible to cyberattacks. Decentralized exchanges are more demanding, cheap, require some technical know-how, and offer security benefits from hackers. Crypto can also be traded through peer-to-peer transactions.

Choose How To Pay

Beginners are like to use regular money to buy crypto. Fiat currencies like the US dollar are mainly used for trading in cryptocurrencies. For non-beginners, there is the option of trading in one crypto option with another, for example, Bitcoin or Ethereum.

Fund Your Account

Depending on the method of paying selected, funding the account can be done using bank transfers or debit cards in fiat currencies. Credit cards may also be used, but this is a risky option. You can trade-in your crypto by transferring it from a digital wallet or any other platform for those with existing crypto. For this option, make sure trade-in is allowed because not all cryptocurrencies can be traded for the other.

Select Crypto Option

After funding the account, the last step is selecting the option you want to buy. Have your investment goal and the use for the crypto in mind before deciding.

Buying Bitcoin in Florida

Bitcoin users in Florida use some of these ways to purchase bitcoin, just like those in other states.

Bitcoin ATMs

Bitcoin ATMs are strategically located in the state for everyone to access.. They operate in the same way as those in other states, and they are easy to use.

Bitcoin ATMs in Florida

Bank Wire Transfer

Even though it may involve a lengthy verification process, it is safe, cheap, and convenient. It may also take substantial time to transfer the amount to the beneficiary’s account from your account.

Debit and Credit Cards

You can use your master card, visa card, or other credit cards as long as they are acceptable. You will receive the number of bitcoins equivalent to the amount deducted from your card.

Pros and Cons of Crypto

The following are some of the advantages and disadvantages of cryptocurrency.

Pros

Owners can earn passive income from some crypto through a process called staking
It is viewed as a future currency, and this directly relates to Florida. With the governor’s proposal, crypto will be highly used in the state in the near future
Reduces inflation since banks are removed from the managing money supply
Blockchain technology is more secure than traditional systems of payment

Cons

Regulatory changes may have an adverse effect on the crypto world
The mining process of bitcoin has a significant environmental impact
There is a considerable investment risk for short term investors

Important Things To Note As a New Investor

Before you set your mind to start investing in cryptocurrency, here are some of the most important things to note about the same to reduce investment risk.

Conduct thorough research
Verify the authenticity of any information gained or given
Start small. It is very dangerous to invest heavily in crypto on your first investments. Start small as you take time to learn about it.
Rely on your research. Take some quality time to do your research.
Be patient. Like any investment, patience is key.
Understand how crypto works