How to buy a coin like Ethereum
how to buy a coin, in this case we will take Ethereum as an example.
First of all you must have a wallet, your choice of whether a software wallet or a hardware wallet.
If you don't know the difference, check our article dedicated to what the various types of wallets are.
After that, find your ethereum address.
After you log into your favorite exchange, check that you have enough funds and make your ethereum purchase.
Go to your wallet page on the exchange, look for your newly purchased eths and withdraw your coins. At this time, you will need the address of your wallet that we searched for earlier.
Enter the address, confirm the transaction and you will see your eth pass from the exchange to your wallet.
All in a very simple way.
Various types of Bitcoin wallets
Today we are going into details about the different types of wallets for Bitcoin.
As I have already told you, having a wallet where you can put your bitcoins is essential, it is one of the absolutely necessary steps to invest.
However, there are different types of wallets, all created accordingly to the needs of the owners.
The first diversification is between custodial and non-custodial wallet.
A custodial wallet is for example a wallet on an exchange, where you can use the wallet but you don't have control over it since you don't have the private keys.
Non-custodial wallets, on the other hand, are wallets that you can access via private keys and are in your full control.
This category is divided into hardware wallets and software wallets.
Let's start with the first type, namely the hardware wallets.
A hardware wallet is a physical wallet, practically a USB key that we can hold in our hands.
The most famous models are the Nano S or X and the Trezor.
These wallets are perfect for securing large amounts of coins and are fairly easy to use.
Another point in their favor is the vast support, in fact they allow you to have different types of coins saved inside them.
The safety of use is one of the fundamental points of this type of wallet, safety that you pay dearly given the purchase cost, based on the wallet model chosen, which is particularly high.
These wallets then need to use special software to work, such as Ledger Live for the Nano.
Let's move on to software wallets, which are a type of wallet that we can have on a device such as a phone or laptop.
One of the most popular wallets is electrum wallet, which is free and open source. It is a wallet dedicated only to bitcoins and we must say that it does not have a really nice user interface. But it works, is appreciated by users and is safe thanks to the fact that it is open source.
It also works with some hardware wallets.
Now let's talk about the wallet of hardcore Bitcoin professionist, let's talk about bitcoin core wallet.
Now let's understand, this wallet is specific only for people who know what they are doing since it downloads the entire bitcoin blockchain on their pc, and we are talking about gigabytes of memory.
This wallet is the ultimate in privacy and is obviously only for bitcoin and only for pc.
You will have complete autonomy and full possession of the tools of the bitcoin blockchain, so it is not for those who are just starting out. Even the interface doesn't help.
Now that you know what the various types of wallets for your bitcoins are, you just have to decide what to use in complete safety.
Learn more about safety here.
The difference between economy and finance
Today we are going to learn what is the difference between economy and finance in our society.
It is a difference that has been thinning lately but which is still present.
We have to start from a well-defined initial assumption, the stock market does not measure the same thing as the economy, they are two connected entities but they represent two separate things.
The financial markets as a whole represent all the stock exchanges in the world and their lists or indices such as the Nasdaq in the United States.
On these indices, stocks, bonds and other financial instruments of that specific country are bought and sold.
The market goes up when the value goes up, and goes down when the value goes down.
So the indices give us an idea of how the market is doing.
If the stock market lists are contained and easily calculated, this is not the case for the economy.
In fact, the economy is much more extensive and difficult to calculate.
A value like GDP ideally indicates a country's spending mass, but investments, exports, imports, household consumption, their debt burden and government spending must also be considered. We are talking about a huge number of variables.
Back to the stock market, this gives us an idea only of the trend of the companies that are listed on that list.
We are talking about a vision that we can define as distorted or very limited.
These listed companies are actually part of the country's economy but there are also a lot of companies that are not listed and are themselves part of the economy.
Most companies in a country are not listed, for various reasons.
A possible collapse of the economy would affect them all in a more or less serious way while a collapse of the stock market should not affect them directly, or rather it could affect them indirectly with regard to any listed partners or suppliers.
In fact, if we change our point of view we will see that most of the people who have a job are part of the economy, but not all of these workers have money invested in the stock market, so a decline in stock has no direct impact on the citizen while a collapse of the economy does.
However, it should always be remembered that the stock market is still important since it has an indirect impact on the economy and on citizens' portfolios. In fact, the value on the stock market is reflected in the banking relationships of companies.
Companies considered of little value on the market, in addition to struggling to survive the competition, cannot access loans and therefore funds for their business.
Returning to the stock market, it should be specified that it may or may not push the real economy.
A rising stock market will give investors a greater propensity to spend, an expense that will be inserted into the real economy circle by increasing wealth. This wealth will allow companies to grow, increasing their staff and their reference markets.
Collect more capital on the market that can be invested in the company itself, without also considering the "wealth effect" given by a rising equity portfolio.
Obviously, all of this is reversed if we have a collapsing stock market, with a slowdown in the real economy.
But this influence between the financial market and the economy is real, the trend of the economy also influences the financial market.
those who work on the stock market base their sales and purchase decisions on what they see happening to the economy and its players in the field.
These two entities are closely linked but not necessarily have to move in the same direction, this is because they focus on two different periods of time.
The financial market has a vision towards the future, those who buy and sell shares do so by thinking about what will happen and how the economy will go in the coming months or years.
So the stock market will grow if there is a belief that the economic world of tomorrow will be better than today.
You can take positions today that will last for years or decades.
The indicators of the economy instead look to the past, that is, they are a snapshot of what it is today, but more precisely yesterday.
Economic indicators can indicate a contraction and at the same time the stock market can grow because investors see a possible recovery of the global economy on the horizon.
Remember that stock market prices reflect investor expectations.
Expectations and not what will happen in the future.
The entities of economics and financial markets are two entities with major complications, which cannot be solved in simple numbers. Always have a balanced approach when investing your money.