Blockchain technology is exciting not only because of its novelty but also because of its ability to disrupt multiple industries. Many blockchain-based projects are out today, each with a specific goal. ArtByte is one of them, and it aims to make it easy for people like you to support artists.
The ARTByte cryptocurrency has over 150,000 social media followers from artists, art lovers, and crypto-enthusiasts. This increased attention is making the ABY tokens a popular target for investors. If you are considering buying ArtByte, here is the only guide you need.
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For the uninitiated, ArtByte is a cryptocurrency like Bitcoin and Ethereum. The digital currency is a unit of value in the ArtByte blockchain network and facilitates apps built on the network. However, the ABY tokens are the most exciting part of the project because they gain value over time. So, would you like to own some ABY tokens or just trade the price fluctuations?
Investors can either buy the ArtByte cryptocurrency for long term time appreciation or trade them the same way you would trade fiat currency in the foreign exchange market. Having clarity on your ultimate goal is essential towards knowing how to get ArtByte.
Consider the first scenario where all you want is to possess some ABY tokens. In such a case, you might want to set up a cryptocurrency wallet. Once you buy the coins from a cryptocurrency exchange, you have two options when thinking about storage. You could leave the coins with the exchange (those that offer crypto custody services) or take them with you to a private wallet.
The wallet is a piece of software or hardware that stores the private keys to your digital currency. Think of the private keys as the personal identification number (PIN) that gives you access to the bank account.
Buying cryptocurrency has some merits. The most significant one is that your holding grows in value over time. Also, you could use the digital currency to make online purchases when the time for mainstream adoption of the crypto comes. Nonetheless, owning ABY comes with drawbacks such as security, setting up wallets and the inability to benefit from volatile markets.
That is why this second scenario could be appropriate. This scenario suits those who wish to benefit from the price gyrations of ABY. ABY trading services are available through ArtByte brokers. The Broker offers products like contract for differences (CFDs), which gives you the chance to anticipate the market’s direction. If your instinct is correct, you earn a profit.
A great thing about trading ABY CFDs is that you never have to worry about storage. CFDs simply expose you to the underlying asset. You only trade the difference in ABY price, not the real tokens.
Now that you know that a cryptocurrency broker enables you to trade digital currency, as opposed to owning it. But the services are not free, which means a broker’s fees are the first thing to look out for when scouting for a platform. Other than fees, the security of the platform is a critical factor. Please remember that the Broker will handle your funds and personal information. Each Broker implements platform security to a certain degree, so make sure you select the entity with the best security protocols in place.
Follow these five simple steps to buy ArtByte with a broker:
When a specific broker ticks all the essential boxes, the next step is to open an account. Thankfully, most brokers have a straightforward registration process that requires less than five minutes to complete. This depends on the depth of information asked.
For example, you could have your account ready within 30 seconds if you choose Skilling as your Broker. Skilling only asks for a verifiable email and an active phone number. This Broker has the option of verifying your identity later so that you can have time to give the platform a test run before going live.
Contrast Skilling with Forex.com. Forex.com takes new users through a series of hoops before readying their account. Also, Forex.com demands more detailed information before setting up your account.
As you would expect, each Broker adheres to a unique process of identifying new clients, a process called know your customer (KYC). Some brokers take new customers through the KYC process first before allowing them access to the platform. Others such as Skilling let you gain experience with a demo account for some time. You will only need to complete the KYC process when you want to open a live trading account.
The information required for KYC varies, but the theme is singular. This information should provide adequate proof that you are who you claim to be. The brokers ask for certified copies of identification documents such as national ID cards or driving licenses. Furthermore, you might be asked to provide copies of documents that ascertain your location.
A broker can maintain a secure trading environment if it can adequately account for all its clients. In a sense, the KYC process is a security-enhancing feature. Known clients are unlikely to engage in fraudulent activities, and this boosts the reputation of the ArtByte trading market. Eventually, the excellent reputation might convince more people to join the ecosystem, hence stimulating mass adoption of the ABY tokens.
Many brokers include all the necessary information on their website. When you create your account, an ideal broker will display information such as the payment providers supported. The website might also include recommended payment methods, although this information varies based on location.
Another critical factor is the speed of transactions. How long does it take for funds to reflect in the trading account? Faster speeds define the preferred payment method. Third, the security of the payment method is critical. Does the payment method take good care of clients’ funds? Plenty of information exists online (through user testimonials and reviews) that should help in this regard.
Please note that security begins with you. It does not matter what security protocols a payment provider deploys if plenty of lapses exist on your end. For example, using an unprotected computer exposes transactions to hackers.
Setting up the trading account is the first phase of the journey towards trading ArtByte. The next stage is taking a position in the market. For starters, brokers bundle ArtByte CFDs in terms of pairs, which could be crypto/fiat pair or crypto/crypto pair.
The conventional wisdom in the cryptocurrency trading market is that you do not open a position without a strategy or plan. Strategy encompasses the ultimate goal of your trading activities and a clear roadmap for achieving them.
Let us begin with going long ArtByte. To illustrate this concept, let us consider a trader who buys an ArtByte CFD from eToro. For your information, a CFD is a binding contract where the trader (who is the buyer) and eToro (the seller) agree that the seller will pay the buyer the difference between ArtByte’s current value and its future value when the buyer exits the market.
Going long ArtByte implies the trader buying a CFD position from eToro to gain from an increase in ABY price. The long position is an expression of confidence on the trader’s part in the strength of the ArtByte market. If the trader closes the position at a higher price than it was when entering the market, eToro will pay the difference. However, the trader will pay more to eToro in the event that the closing price is lower than the opening price.
On the other hand, going short ArtByte implies the trader lacks confidence in ABY’s price in the future. Here, you buy a CFD position that anticipates ArtByte’s value to fall. If the price does fall, the trader will earn gains equal to the difference between the opening price and the closing price.
Nevertheless, all trading positions do not perform as envisioned. Price action in the market might turn the other suddenly, putting your position on the road to massive loss-making. Thankfully, you could fall back to a stop-loss order. Stop-loss is a risk management tool that prevents your position from accumulating losses more than you can manage. Its main benefit is that it activates automatically once the given threshold is surpassed.
When the time comes to close a position, you will do so with a profit or loss. Thankfully, tools such as stop-loss give considerable control to traders concerning how to exit the market. Stop loss is especially crucial when limiting the possible loss. This setting entails selecting the price level at which the Broker should close your position to avoid further losses.
On the other hand, the take profit setting enables traders to earn as much income as possible from a market position. Similar to stop-loss, take-profit executes automatically. The settings are helpful in a volatile environment.
Sometimes you just want to exit the market without using stop-loss/take-profit settings. Perhaps you think the income earned thus far is enough and wish not to stay in the market any longer. In such a case, you are welcome to close the position manually.
We said previously that investors buy/sell ArtByte via crypto exchanges. The choice of a preferred exchange depends on whether it fulfils specific requirements, including affordable fees, adequate security and evidence of regulation. Because cryptocurrencies are a new asset class, the chances of encountering swindlers are high. Therefore, regulation is the surest way of ascertaining the legality of an exchange.
Buying ArtByte from an exchange requires more work because it entails the handling of actual coins. People buy cryptocurrencies for various reasons. In your case, it could be that you wish to tip your favourite artists around the world. But this transaction can only happen if you have the ABY tokens for transfer. So, let us buy some ABY tokens first before thinking about tipping.
As a first step, you need an ArtByte wallet to store the coins after a successful purchase. How do you set up the wallet? A cryptocurrency wallet keeps your tokens safe the same way a bank safeguards your fiat currency.
The market today has two popular crypto wallet options, which are software and hardware. Software crypto wallets reside on an internet-enabled device–a smartphone or a computer. Once installed, you can access the wallet by providing the proper credentials.
On the other hand, hardware wallets are physical devices accessible via a computer. Hardware wallets provide better security because of their imperviousness to intruders. Their most important quality is that you can access them offline, which explains why they are called cold wallets.
Several exchanges deal with ArtByte, and they all demand that you register with them before you can make any transaction. ArtByte is available on Poloniex, Bittrex, and Nova Exchange.
When signing up, each of the exchanges will take you through a specific procedure to ascertain your suitability as a client. Most of the exchanges will take you through a rigorous KYC process to stay in compliance with regulations. Such exchanges are ideal for buying ABY because they offer better security for your funds and personal information.
The choice of an ideal payment method depends on whether the exchange accepts fiat currency exclusively or allows crypto payments. Most of the exchanges mentioned above only allow ArtByte purchases using crypto, such as Bitcoin (BTC). However, they enable deposits in fiat currency.
One of the fastest and most reliable methods for funding an exchange account is debit/credit cards. The funds are likely to reflect in the account from a few hours to 24 hours, which is an instant compared to slower avenues such as bank transfers. Banks take longer to vet transactions; perhaps this is why security is excellent when using this payment method.
Each payment method has its strong side, and it is upon you to find out. It will help if your choice of the preferred payment avenue is based on affordability, convenience and a comfortable transfer speed.
Unlike leading cryptocurrencies like Ethereum and Bitcoin, the process of buying ABY is a little convoluted. Exchanges do not support a direct exchange of fiat currency for ABY tokens. Instead, buyers have to acquire BTC or ETH first then use the tokens to purchase ArtByte.
A typical buying process starts with buying BTC using the funds in your account. You can purchase Bitcoin on any of the popular exchanges. Once delivered, transfer a specific number of tokens to the exchange through which you wish to acquire ABY.
Let’s say you have a Poloniex account. After you purchase BTC from Poloniex or any other exchange, go to your Poloniex account and click on the “Buy/Sell” tab. A page will open that contains all the necessary instructions. For example, you must specify the amount of ABY tokens to buy, and the exchange will calculate the amount of BTC you need to pay.
Once the exchange validates the transaction, you will receive the ArtByte tokens. Some exchanges provide the newly purchased tokens’ information under the “Balances” section of the website. The tokens should be safe in the exchange’s custody, although you have the liberty to move them to a private wallet.
Moving ABY from an exchange to a private wallet is straightforward. Just find the “Withdraw” button under the “Balances” tab and click on it. In the prompts that follow, you will provide the address of the destination wallet. The transaction should complete after you satisfy all the requirements.
Usually, people buy cryptocurrency to hold and perhaps use in the future. As such, buying Aeternity is not the same as trading. Consider an investor who wishes to add ABY to his portfolio. The investor intends to hold the tokens for at least one year and will only sell when the ArtByte price triples, based on the current price. The recommended platform for the investor to obtain the ArtByte tokens is an exchange such as Bittrex or Binance.
Contrarily, trading ArtByte tokens involves wagering on the ArtByte price. The day trading of ABY is a great illustration of this concept. Day trading entails buying and selling of an asset or its derivative within a single day. You could buy and sell several times or just once but within one trading session. Professional brokers such as Bittrex or eToro provide the best platform for trading ArtByte.
An ArtByte exchange facilitates the acquisition of ABY tokens in exchange for another digital currency. Participants on the exchange’s platform buy/sell at the prevailing market price. Also, no intermediaries are involved in the interactions between buyers and sellers.
A professional broker links its clients with an ArtByte exchange. Because of limited space in the ArtByte market, the Broker caters to clients’ needs by creating derivative products such as contract for differences (CFDs). CFDs are instruments that track the market price of ABY. A CFD enables you to either long or short ABY. Either way, you earn income when the market goes your way, and you lose funds when the market goes in the opposite direction.
The long-term investment strategy is synonymous with buying and holding ArtByte for extended periods. Primarily, this strategy aims to exploit ABY’s price spike (if it happens) in the future. The upside of this strategy is stability. Also, asset prices trend upwards in the long-term, which means the probability of earning a profit through this strategy is considerable.
On the downside of the long-term investment strategy is the possibility of losing the ABY tokens to hackers. This outcome is likely when you overlook proper security measures. Also, holding ABY tokens for extended periods comes at the cost of setting up and maintaining a wallet.
Short-term investment involves betting on a brief exposure to the underlying ABY price. This strategy often entails trading ArtByte through a professional broker. Its most significant upside is that you do not suffer the burden of maintaining a wallet. The approach also enables investors to exploit short-term gyrations in ABY price.
The following tips are invaluable in case you decide to buy ArtByte (ABY):
A great investment strategy begins from the point of strength. The strength comes from insights gleaned from extensive research. Due diligence should inform you when to buy ABY potentially to earn higher returns in the future. Only research can tell you what position to take.
If you recall, we listed various exchanges from where to purchase ABY. Some exchanges deliberately place their costs high, and you could come off short if you fail to compare with other platforms. Comparing the costs of exchanges should be part of due diligence. This way, you avoid unnecessarily high costs and increase the margin of potential gains.
Security and safety are forever themes in the cryptocurrency ecosystem, primarily because of the novelty of blockchain technology. ArtByte exchanges and professional brokers offer access to a new product whose vulnerabilities to bad actors are still evolving. As such, you are safer if the platform you choose to use implements the latest security protocols. For example, setting up two-factor authentication (2FA) could go a long way to lock bad actors out of your account.
Nodes in the ArtByte ecosystem can create ABY tokens via mining. This is the primary source of new ArtBytes. Additionally, artists can sell their craft on the ArtByte Music Store for ABY tokens. Another way to get the digital currency is by receiving a tip on social media. Lastly, the ArtByte Foundation also provides grants and awards to artists.
Mike Cabaniss created ArtByte for art lovers. The project aims to improve the relationship between artists and their supporters by streamlining how they appreciate their idols. ArtByte’s tipping applications on social media have created a massive following for the project. The increased direct interaction between artists and their fan base could provide the impetus for ABY to enter mass use.