It’s been called the sleeping giant of cryptocurrency and has a growing fanbase, but how realistic are these claims? If you’re looking to join the party, this guide will show you how to buy and trade Digibyte in 2020.
Where to buy Digibyte
Read on to find out more about Digibyte in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Digibyte?
You may have heard that Digibyte is a big threat to Bitcoin, but is there any truth in such a bold claim? Digibyte looks great on paper and uses superior technology to a lot of more established coins. It’s secure, scalable and has nearly 100,000 nodes on the network, but uptake has been slower than expected.
Less established coins often struggle to become widely adopted by the cryptocurrency community and that’s Digibyte’s Achilles heel. But don’t let that put you off – the Digibyte team have big plans for the coin and they still have Bitcoin in their sights.
How does Digibyte work?
If you know how Bitcoin works, then you know how Digibyte works. Both coins use a Proof-of-Work algorithm and miners to extract new coins. The big difference is the technology behind Digibyte. It boasts much faster block times (fifteen seconds to Bitcoin’s ten minutes) yet remains the more secure coin (Bitcoin uses one mining algorithm while Digibyte uses five).
How to buy Digibyte online – step-by-step guide
Step 1. Get a suitable wallet
As you would expect with a coin so closely related to Bitcoin, there are plenty of storage options around, but it’s well worth checking a few wallets out before you decide on one. Here are our top picks for Digibyte:
- Official DigiByte Software Wallet: One of the best wallets for Digibyte comes directly from the Digibyte devs, who have created a highly versatile and secure mobile and desktop wallet that should suit your needs, especially if you want to join the network as a node.
- Ledger Nano X: If you’re into security and don’t mind paying a premium, then look no further than the Nano X from Ledger. It’s a top-of-the-range hardware wallet that’s difficult to beat.
- Coinomi Wallet: As the only third-party software wallet that’s recommended by the Digibyte team, the Coinomi wallet download page is the place to go if the options above don’t float your boat.
Step 2. Find a Digibyte exchange
Once you’ve got your wallet sorted, you’ll want to head to an exchange to buy some Digibyte. Finding an exchange won’t be an issue, but we found prices and fees are quite variable, so it’s worth shopping around. Here are two of our favourite Digibyte exchanges:
Bittrex: One of the top exchanges, no matter which cryptocurrency you’re looking for. It doesn’t accept fiat currency though so you’ll need another cryptocurrency, such as Bitcoin, to get started.
HitBTC: If you want to buy your Digibyte with USD then head on over to HitBTC where you’ll find an easy-to-use interface and multiple coin support.
Step 3. Withdraw your Digibyte
We always recommend that you withdraw your funds once you’ve paid for them as they will be much safer in a wallet than left on the exchange.
How to trade Digibyte – step-by-step guide
If you’re only thinking about trading and have no intention of buying cryptocurrency, then you won’t need a wallet as you will be speculating on the price rather than buying currency.
Step 1. Find a broker
When you are on the lookout for a broker, it’s good to do some homework and check out what’s on offer. There are lots of reputable brokers out there, but they all offer different features and levels of support. Some are geared towards newbies and some are just for the pros. Two of the biggest and best brokers right now are eToro and Plus500.
Step 2. Deposit money
After choosing a broker, the next thing you need to do is put down a deposit. Once your deposit is down, you’re good to go, but we recommend you don’t jump in too quickly, especially if you’re new to the game. Most brokers will let you set up a demo account which will give you a good idea of how it all works.
Step 3. Decide how you’d like to trade
There are two ways to trade on cryptocurrencies. These are Spread Betting and CFDs (contracts for difference). On the surface, both of these methods seem fairly similar – whichever you choose, you’ll be making a call on whether you think the value of your cryptocurrency will rise or fall. If you’re not sure whether you want to choose spreads or CFDs it’s worth doing some more research.
Step 4. Start trading
As you’ll see once you’ve mastered your demo account, trading cryptocurrency isn’t that complicated. Regardless of whether you’re a complete novice or a seasoned pro you’ll be watching the ebb and flow of the value of your chosen cryptocurrency and taking a position based on whether you predict a rise or fall. If you’re confident the price will go up, you’ll take a long position (buy) and if you think it will fall, you’ll take a short position (sell).
Depending on your broker and your experience as a trader, you can also add leveraged trading to your strategy. This enables you to put down a fraction of a trade’s worth (known as a ‘margin’), with the broker covering the rest. Be warned, though, this is not for inexperienced traders as it’s a high-risk move. Savvy traders often use stops to mitigate the risk and limit potential damage.