A Simple Guide to Buying Cryptocurrencies

Cryptocurrencies can be defined as digital assets used for trading in the global market 24/7. If you want to start trading cryptocurrencies like dogecoin, ether or bitcoin among others, there are different options for you to consider.

Cryptocurrency is a unit of measurement. You can’t duplicate it, but you can transfer it from one person to another. It is different from the standard currencies like the US dollar that we use on a daily basis.

This is because they are neither centralized nor physical. They are virtual currencies that can be used just like physical currencies. You can pay for goods and services using cryptocurrencies. The use of blockchain technology makes cryptocurrencies the most secure currency we have today.

Guide to buying and trading cryptocurrencies

Choose a crypto exchange or broker

The first step in buying cryptocurrencies is choosing a cryptocurrency exchange or broker. However, you need to make sure that you choose the one that works for you. Trading cryptocurrencies is like playing fantasy football where you choose the players who can do the work for you.

A cryptocurrency exchange can be defined as a platform through which sellers and buyers can trade cryptocurrencies. One of the advantages of using cryptocurrency exchanges is that they are cheap and have low fees.

However, their interfaces are a bit complex. This is due to the multiple types of trading they have. They also come with performance charts that may not be easy for new traders to interpret.

Cryptocurrency brokers, on the other hand, function as intermediaries between the traders and the cryptocurrency exchange. They are a bit expensive compared to crypto exchanges.

Create an account

After choosing to use a crypto exchange or broker, you need to create an account. Here, you have to look at different trading platforms and choose one that meets your requirements. This can be dictated by the number of cryptocurrencies you want to buy or trade.

In addition to creating an account, most platforms will ask you to verify the account. This is important because it helps these platforms eliminate fraud. They are also required to do so by some regulatory authorities.

It is important to note that some platforms will not allow you to sell or buy crypto if you have not verified your account. The verification processes are different: some platforms may ask you to share your photo, while others ask for a personal document like a driver’s license.

Deposit money

This is the main stage when buying cryptocurrencies. You cannot buy or trade cryptocurrencies if you do not have money in your account. There are different ways to deposit money, one of them is to add your bank account to your crypto account.

This allows you to make payments by credit or debit card or even by bank transfer. You may have to wait a couple of days before you can use this money, depending on the platform you choose to use.

It is important to talk about how to buy cryptocurrencies with credit card. This is because it can be expensive and risky at times. Credit card providers assume that cryptocurrency purchases are cash advances.

This makes them a bit more expensive compared to other purchases. Therefore, you should check with your credit card provider before buying cryptocurrencies.

Place your order

Now that you have money in your account, you can proceed to place an order for cryptocurrencies. Here, you first need to choose the cryptocurrency that you want to buy. There are different cryptocurrencies, such as Ethereum, Holo and Bitcoin, among many others.

After finding the right cryptocurrency for you, make sure you know its symbol. For example, Bitcoin use BTC. You also need to decide how many coins you want to buy.

Since this is your first time trading and buying cryptocurrencies, don’t be tempted to spend a lot of money by buying a lot of coins. Just start with a few coins or a fraction of them. Here, you may find yourself investing a lot of money if you are not careful.

Choose a storage method

Most governments in the world have not established control or regulation methods for cryptocurrencies. This puts these coins at a higher risk of hacking and theft. The cases of people who lose their money are many, so you must be careful.

Fortunately, you can choose a safe storage method for your cryptocurrencies. However, you may not have this option if you are using a broker. This is because brokers do almost everything for you.

Those who use crypto exchanges can choose to use cold wallets, hot wallets, or just leave the crypto on the crypto exchange.

If you follow this guide carefully, you will find it easy to buy cryptocurrencies and continue to grow your portfolio over time.