How To Buy Cryptocurrency
Best Ways To Buy Bitcoins and Altcoins
Are you ready to buy your first cryptocurrency? That could be due to many reasons; the fear of missing out, what crypto enthusiasts calls FOMO. Or maybe you just see a friend of yours becoming an overnight millionaire, doing just what they call trading cryptocurrency. It’s not too late to join the train Satoshi Powered since 2009, you are late but not too late to buy your first cryptocurrency. The point is that if you decide to buy bitcoin, Ethereum, or any of the hundreds of altcoins out there, it doesn’t have to come difficult. It’s meant to be fun and easy process, it may not be as easy as changing currency at a foreign airport, but it’s still easy.
There’s a caution here so that you won’t be disappointed; don’t expect to become a millionaire like that your friend or neighbor. It doesn’t come that easy or maybe by a stroke of luck, you’ll pull it off if you know what you are doing. Maybe you should start by investing money you won’t need soon, more of a side hustle thing. Let’s get to it by firstly assessing factors that should determine the ease of buying cryptocurrency.
What to think of before buying cryptocurrency
Over the last few months, the process of buying cryptos have become simpler and easier but you still have to iron out some issue
7Which Cryptocurrency are you Buying?
There are hundreds of cryptocurrencies out there, Bitcoin and Ethereum might be the most popular, but not necessarily the most profitable. It’s not only enough to choose which cryptocurrency you are buying but know where to buy it also. Every website does not sell all cryptocurrency available.
6How will you be paying for the Cryptocurrency?
There must be a relationship between the cryptocurrency you are buying from a website and the payment option available on that website. Usually, all cryptocurrency website accepts credit card, cash and even bank transfer. Ensure the website you are buying from accepting the payment option available to you. Where Are You and What’s The Legal Climate Towards Cryptos?
Your location is another determinant of how to buy cryptocurrency. There are still some countries with stern regulations against cryptocurrency. You need to be sure you are flouting any law that could land you on the wrong side of the law.
5How much fees will you pay to buy cryptocurrency?
Buying cryptocurrency is not cheap. Aside from your cost of investment, the website you are buying from might charge you a little fee. Maybe a flat rate or a percentage of the cryptocurrency you are buying. Ensure you have a knowledge of what you’ll be paying as fees before pitching your tent with any website. It won’t make any sense for you to go through the lengthy process of registering and verification, then end up seeing an exorbitant fee you cannot afford.
4How Many cryptocurrencies Can You Afford?
This is intentionally coming as the last factor. Only you know how much you can afford. Don’t invest more than you can afford to lose or do away with for a while.
We’ve ironed out all this important part. What’s next is to consider where you’ll be keeping what you bought
How To Buy Cryptocurrency and Where You’ll Store it
You cannot keep your cryptocurrency in your bank account, your Paypal account or your credit card. You’ll need a cryptocurrency wallet. It’s like your bank account without the physical structure. There’s no physical building to walk into, everything is online.
Majorly, there are three types of wallets: online, software and hardware wallets. As a newbie, you should choose one that gives you the ease you need. Going with a multi-currency wallet is also another important consideration.
Usually, different cryptocurrency used to have separate wallets but with wallets such as Exodus, you can keep all your cryptocurrency in a single wallet.
With an understanding of where you’ll keep whatever cryptocurrency you buy, we can now move ahead to talk about where you buy your cryptos.
Where To Buy Cryptocurrency?
Unlike before, there are not easier mediums to buy cryptocurrency. It’s your choice to make. We’ll consider three options of where to buy your cryptocurrency; cryptocurrency exchange, Bitcoin ATM and Peer-to-Peer Exchange. All of the three options have their strength and weaknesses.
3Buying Cryptocurrency From Exchange
Arguably the most popular of the options. Cryptocurrency exchanges allow you to exchange your local currency into any cryptocurrency of your choice. This is why you have to be sure the exchange website sells the cryptocurrency of your choice. Newbies are encouraged to start out with exchanges as they are the easiest and the most accessible of all the options.
These exchanges accept PayPal, credit card payment and bank transfer as mode of payment. You’ll need to register and verify your identity on an exchange. You may need a passport or driving license for the verification. You should know that exchange charge between 1-4% transaction fee. The best exchanges are Coinbase, CEX.io, Coinmama, Kriptomat, Bitstamp, and others.
2Buying Cryptocurrency From Bitcoin ATM
You may not have heard of it, but they exist and are new. It’s just like your regular ATMs where you withdraw your USD, GBP, JPY, and others. The only difference is that rather than withdrawing, you’ll be depositing cash in exchange for the equivalent value of the cryptocurrency.
Expect to be charged around 5 -10% transaction fees, that’s almost a double of what Exchanges charge. The edge it has over Exchanges is the speed, no need an identification and a simple process of buying. The ATM will guide you on exactly what to do from the moment you slot in your card.
1Buying Crypto Peer-to-Peer
Rather than buying from an ATM or an exchange, you can eliminate middlemen by buying directly. For example, you are Atkinson and you need Dashcoin when you have Bitcoin. All you have to do is to look, let’s say Meg that has Dashcoin and needs Bitcoin.
It may also be in form of cash, you have cash and send to someone who has the needed cryptocurrency. As simple as this appears, they are an inherent weakness. This include susceptible to scam, and issues determining the swap and exchange rate of the cryptocurrency involved.
Summary on How to Buy Cryptocurrency
Just know that trading or buying cryptocurrency isn’t for the faint-hearted. You need to be ready to take a calculated risk. Yes, it has made many rich and also a lot poorer than they used to be.
Know the best medium you will use to store your cryptos after buying and the best place to buy considering factors such as cost, location, and ease.