Once you will learn and accept the risks of investing, and meet your financial priorities, the next step is to buy crypto. Luckily, there are thousands of different cryptocurrencies, but according to experts, you should take the one that suits your needs most. Crypto is an extremely volatile market, and it can be especially complex for a beginner. Even more safe and established cryptocurrencies, like Bitcoin and Ethereum, experience their volatility, but they’re at least a lot more valuable.
Bitcoin, as you may already know, is the most valuable coin in the crypto market. With prices winding in the crypto market, it could be a great time to buy if you are interested. Here’s how to buy crypto.
Choosing the Right Exchange
First things first: Bitcoin, for example, can’t be purchased through a bank yet, although some organizations work towards that possibility. At the moment, you must go through a crypto trading platform, like Binance, to exchange your dollars for Bitcoin, Ethereum, or other digital currencies. Note: read this Binance review and find its PROs and CONs as well as learn how to use it. As mentioned, there are hundreds, if not thousands of trading platforms you can use to buy crypto online. Narrow down your search for the right trading platform based on the following factors:
Fees – Exchange platforms can vary greatly, and might be applied as a fee or a percentage of your trading status. Fees might be influenced by price instability, as many of them are charged per operation. Fees should definitely be considered, especially if you’re sticking to a bigger exchange, like Binance. Other exchanges might be based on your payment method, location, etc. Make sure you know what fees you will be charged before you reach the point of investing or signing up for a trading platform. The fees should be clearly exposed on the website, which can help not spend more than you expected.
Security – Cryptocurrency investments aren’t backed by central institutions. If your account is compromised, you’re at risk of losing your investments, and this is something you can’t afford. If you want to keep your crypto on your account with an exchange, ensure you choose one that has some sort of insurance policy to help protect you against hackers.
Available cryptocurrencies – Not all exchanges provide all cryptocurrencies out there. Popular ones, like Bitcoin or Ethereum (ETH), are available on most crypto exchanges. And since experts recommend you to stick with these two, it shouldn’t be an issue finding them.
Funding Your Account
Depending on the exchange you end up choosing, you might need to provide information like your SSN (social security number), ID, and how much you earn when creating your account. However, keep in mind that funding your account isn’t the same as purchasing crypto – you may never want to leave your money in your account, so once you fund it, exchange your money for Bitcoin.
Placing an Order
Once you will connect a payment method, you will be able to place your order for your desired coin, and the process might differ, depending on the exchange you use. Usually, if you are using PayPal, you can enter the money you want to trade for Bitcoin and buy the current rate, after checking the fees.
Alternatives ways to buy crypto?
You can also buy crypto through digital payment platforms if you have accounts, like PayPal, but these options might not be the right ones for every investor. The apps are simple solutions to buying coins. For beginners, buying Bitcoin or Ethereum using a cash app account might be more accessible than other exchanges, while allowing you to learn more about how to buy cryptocurrency. You should follow the same steps as if you would buy Bitcoin. However, remember that investing should involve using coins like Ethereum and Bitcoin if your goal is to set long-term value. You can find Ethereum on many exchange platforms, or any other specific coins, as larger exchange platforms have up to 50 different cryptocurrencies. Whether you want to use Bitcoin or another coin in your portfolio, it’s best to ensure that you’re comfortable with risking investing in such hypothetical assets. Don’t invest more than you’re okay with losing, and always invest in order to meet your financial goals.
Does Investing Make Sense to You?
As with any other investment, it’s essential to do your research first and understand all about this market. Ensure that your crypto investments won’t get in your goals, like funding, retirement accounts, paying debts, etc. It is recommended to keep your cryptocurrency investments at less than 5%. Bitcoin or Ethereum is great for beginners, but expert investors as well.
Since 2009 when Bitcoin has been created, it has risen in value over the past decade. Most experts like to call it the “digital gold”, as they consider Bitcoin to be a healthy overall investment strategy. According to crypto advisors, Bitcoin and Ethereum are considered to be the best investments thanks to their track records and long-term value, along with other important factors.
Although investing in Bitcoin can seem complicated, trading Bitcoin requires an account at an exchange, a secure connection to the internet, a method to pay, and a private wallet. Before buying Bitcoin or Ethereum, make sure to check the privacy and security of the website – these are two of the most important things you should be aware of. Exchanges are convenient because they provide an extent of features and more cryptos to trade, sell, and hold.
The Bottom Line
A crypto buying process consists of the steps above, but each of the steps requires careful research.
