More countries are starting to accept cryptocurrencies or at least allow their citizens to invest in the digital currency. Regions are now starting to promote comprehensive regulations over cryptocurrencies. Even though each country has a different approach towards digital currencies, people worldwide have grown interests in crypto investment. Read this article if you want to buy cryptocurrency to invest.
You might have also been interested in digital currency investment. Before you can start purchasing coins from cryptocurrency websites online, there are steps you should take. Do you want to buy cryptocurrency? Check our guide below.
Choose an Exchange Platform
Exchange sites are the easiest way to buy cryptocurrencies. It offers a straightforward process where you can purchase digital currencies with your national fiat money. However, there are various exchange platforms available online, and not all of them are legit. Even for secure exchanges, they come with differences you should consider.
The key is to find a secure exchange that covers your requirements and preferences. For a strong selection, consider several factors when choosing a crypto exchange. These include transaction fees, user interface, buying & withdrawal limits, trading pairs, payment options, verification procedure, transaction speeds, and so forth.
If your country regulates cryptocurrencies, choosing the regulated exchange is preferred. You may also have specific needs or preferences like bitcoin prices or exchange rates to be weighed. Don’t rush your decision but take your time when selecting a crypto exchange instead.
Exchange platforms can either come in web-based platforms, mobile apps, and the ones that provide both versions.
However, note that even exchange platforms that support desktop and mobile usage apply slightly different interfaces between the two versions. For example, the viewing interface of mobile exchange may be incomplete compared to the web-based platform.
Sign Up for An Exchange Account
Next, you’d need to sign up for an account in the exchange you’ve chosen. Some exchanges would require ID verification for account registration. You might expect complete anonymity from blockchain technology, but more exchanges would verify ID as a part of security measures and regulation compliance. Every trader should know how to open a bitcoin account properly for a smooth, hassle-free transaction.
Setup Your Crypto Wallet
The use of digital wallets has become common and recommended in crypto investment for strong reasons. Since exchanges have been targets of hacking attacks for a long time, leaving your digital currencies in your exchange account is no longer safe. The best practice is to get a dedicated crypto wallet to store and hold digital currencies you’ve purchased.
There are different types of crypto or digital wallet. Some bitcoin trading sites or crypto exchanges offer built-in wallets linked directly to your exchange account on the same platform. There are also software wallets that you can install on your desktop or mobile devices. Another type of digital wallet is the hardware wallet that uses dongles that store the private key. Depending on your preferences, you can choose the ones that suit your needs.
Link A Payment Method
Exchanges may offer different payment options, so you can choose how you can fund your cryptocurrency purchases. Some standard payment methods include bank transfers or ACH, debit cards, credit cards, PayPal, or escrow services. The payment option you can choose would be subject to availability on the platform. You’d need to link the payment before you can start purchasing cryptocurrencies.
Whenever available, you can choose the payment method you feel most comfortable with but consider that they may come with advantages and disadvantages. Generally speaking, payment methods with low-speed processing like bank transfer usually charge a low fee and are typically more secure. On the other hand, credit cards may offer instant funding on your crypto purchases but with some security risks and typically higher transaction fees.
Buy Your Cryptocurrencies
Once you’ve completed exchange account registration and set up your wallet, you can start purchasing cryptocurrencies. One should note that each exchange may have different cryptocurrencies to offer. That’s why you must ensure that exchanges support digital currencies or altcoins like bitcoin cash you want to buy before signing up for an account.
It would help if you were considerate when it comes to the number of coins you want to buy. Generally speaking, you should purchase digital currency only in the number you’re willing to lose. It’s merely because crypto markets are incredibly volatile where you can gain or lose everything instantly.
To minimize risk when investing in crypto coins, you can diversify your purchases. At this point, you can buy different cryptocurrencies then put all of your investment in one asset. This way, you can compensate your losses with gains from your crypto holdings and trading.
If you choose to hold your cryptocurrencies, you better withdraw them to your crypto wallet for security reasons. In a digital wallet, you have full control of your digital funds until the day you spend bitcoin or other currencies.
If you decide to invest your cryptocurrency in the stock market or other trading options, you can find a trusted trading platform and invest in the various programs they offer. Again, you need to be very careful to avoid being a scam victim. Read How to Spot a Genuine Cryptocurrency trading Site Here.
Alternative Solutions to Buying Cryptocurrencies
Crypto exchange isn’t the only way you can purchase digital currencies, as you can also use crypto ATMs or peer-to-peer exchange platforms. Many countries have been home to crypto-supported ATMs to buy digital currencies with debit cards or physical fiat money. These ATMs can support crypto selling and buying mode while you can proceed with the transaction anonymously.
However, crypto-supported ATMs typically charge very high fees compared to what exchanges do. On the other hand, you can do transactions regularly except you’re living or working near one.
Another alternative to buying cryptocurrencies is by using peer-to-peer exchanges. These sites allow you to purchase coins from individual sellers or only from other crypto owners. However, it’s generally riskier than centralized exchange as you’re buying from someone you don’t know. Check the reputation of crypto owners and keep the on-site transactions to avoid problems. You can use this exchange to sell your digital currencies as well.
This article discusses the many ways available ways to buy cryptocurrency. You may either purchase from an available cryptocurrency exchange platform or crypto ATMs in your country. After you buy your cryptocurrency, you may choose to keep it in cold storage or invest and trade the cryptocurrency for profit. Whatever you do, make sure you only invest what you can forfeit.
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