In this article we will provide you a master guide if you are an amateur that has entered the crypto world and trying to find out ways to buy cryptocurrencies like bitcoin and others, you are at the right place. The process of buying cryptocurrencies may be confusing at first, but it will be pretty straightforward once you learn the things. By following the below-mentioned steps, you can begin investing in cryptocurrencies efficiently while we also suggest checking some info or guidance for newbie bitcoin traders.
Find a crypto exchange or broker.
The first step towards buying bitcoin or other cryptocurrencies is to find a reliable crypto exchange or broker. Both crypto exchange and crypto brokers allow buyers to buy cryptocurrencies, but there are few differences between both.
A crypto exchange is an online platform that acts as an intermediary and makes buyers and sellers meet their buying and selling needs. Crypto exchanges charge transaction fees and advance interface and buying procedures that can be confusing for first-time buyers. However, some top-notch crypto exchanges offer simple trading interfaces for beginners and provide them complete support for trading cryptocurrencies.
Crypto brokers are a straightforward way to invest in cryptocurrencies as brokers provide a user-friendly interface to beginners. However, as compared to crypto exchanges, crypto brokers charge high transaction fees. Crypto brokers are incredibly convenient, but sometimes buyers face restrictions that disappoint users and make them move their crypto coins to other platforms.
Create an account on an exchange
After you have selected a reliable crypto exchange or broker, you need to create an account on the same platform. The process of buying, identity verification, transaction fees, and security may differ depending on the platform you choose. Creating and verifying your account is essential to prevent cyber thefts like frauds or hacks.
Once you have completed the verification process, you can buy or sell cryptocurrencies. Depending on the specific platform you choose, you need to submit required documents like a passport or copy of your driving license. Some platforms even ask investors to upload their photos to provide proof of their identity.
Deposit funds to invest
To invest in cryptocurrencies, investors need first to deposit funds into their accounts. The platforms offer different options or methods to deposit money in your crypto exchange account, including wire transfer, bank account, or debit/credit card. According to the funding method you chose, you have to wait for a few hours or days to get your money deposited in the exchange account.
It is better to avoid using a credit card to deposit funds in your exchange account as it is pretty expensive and risky. In addition, making payment through credit card often make investors pay high-interest rates and additional fees that credit card companies charge.
Place your order of cryptocurrencies.
After you deposit your funds in a crypto exchange account, you can now place your order of cryptocurrencies. Thousands of cryptocurrencies exist, and you can invest in cryptocurrencies by considering their market capitalization. Enter the number of coins you want to purchase once you have decided on the cryptocurrency. Both brokers and exchanges allow investors to invest in a small number of crypto coins like Bitcoin that are highly-priced.
Invest in cryptocurrency that is popular and has the largest market capitalization. Some of the biggest cryptocurrencies include Tether, Bitcoin, Ethereum, Dogecoin, Cardano, Binance Coin, and more.
Choose a digital wallet.
Crypto exchanges and brokers are platforms that are specialized to allow investors to buy or sell cryptocurrencies. Unfortunately, the government or banks don't back these platforms, and there is a high risk of hacking or theft. You can prevent the risk of losing your investment, and it is better to choose a secure storage method to store cryptocurrencies that are digital wallets.
Digital wallets are the safest storage places to store crypto coins. You can choose to either invest in cold wallets or hot wallets. Hot wallets run on the internet, and cold wallets are wallets that run without an internet connection. It hardly matters whether you choose a hot wallet or cold wallet, but it is crucial to secure your wallets using reliable security methods to prevent frauds and hacks.