As with NBA lines and any other activity that may be something new to explore, cryptocurrency can seem rather overwhelming to sum up mentally when you’re still new to it. As you read this right now, you’re looking for a simplified and straightforward guide on where and how you can purchase cryptocurrencies so you can be part of the digital wallet era.
As with anything new, with the right guidance and steps, you can learn how to go about the task in no time. So to get you started, here’s your perfect guide on how to go about purchasing cryptocurrencies in a few simple steps.
Steps To Buying Cryptocurrencies
Step One: Pick A Crypto Exchange Or Broker
Before you can head off and purchase any one of the cryptocurrencies, you need to pick between using a crypto exchange or broker. Both will allow you to purchase the decentralized payment systems, however, there are a few key differences to note between the two of them.
With crypto exchange, buyers and sellers meet here to trade their cryptocurrencies. Usually, the exchanges offer low fees, however, these platforms are likely to have more complex interfaces consisting of several advanced performance charts and trade types. The moment you land on this as a beginner, you’re likely to feel a sense of intimidation just by looking at it.
On the other hand, you have cryptocurrency brokers that also allow buyers and sellers to come together so they can trade their cryptocurrencies. Using these platforms is far better than considering the crypto exchange route since broker platforms have a friendlier interface, and allow for safer cryptocurrency trading that can only exist with a broker. Two things, however, that you should note about these brokers include:
- Knowing that they charge fees that are possibly higher than cryptocurrency exchanges
- Knowing that some brokers will impose face restrictions on you moving your assets off the platform isn’t so ideal for investors that prefer holding their coins in their cryptocurrency wallets for added security measures.
Step Two: Creating And Verifying Your Crypto Account
Once you’ve decided on whether to go with a crypto exchange or broker, you can proceed to create an account. You may have to verify the information you’re providing, but this is dependent on the platform you’re using and how much cryptocurrency you intend on buying. To prevent any fraudulent activity, verification can be beneficial to you so don’t be too quick to skip this step.
Also depending on the site, the platform may request that you submit your driver’s license, ID document, or passport. They may also request you to upload a selfie of yourself so they know that the person who created the account is the person that they are communicating with.
Step Three: Make Your First Deposit
To purchase any cryptocurrency, you need to have funds in your wallet account. To make the deposit, you will link your personal bank account and then authorize a wire transfer to be done so the request can be submitted and confirmed. You may have to wait a few working days before being able to use those deposited funds but this will depend on the funding method, broker, or exchange.
Step Four: Make The Order
Once the funds are ready for you to use, you can proceed to make your first crypto order. There are hundreds of crypto options for you to choose from that range from your most popular picks like Ethereum and Bitcoin to you more obscure options like Holo and Theta Fuel. Once you’ve decided on which form to buy, enter the ticker symbol and how many of these coins you’d like to buy. Once the request is sent and approved, you will have successfully managed to make your first cryptocurrency purchase.
Step Five: Choose A Storage Method
Exchanges are not supported by protections such as the Federal Deposit Insurance Corporation (FDIC) placing them at risk of having you encounter possible hacks or theft cases. Also, if you happen to lose or forget the codes you’re meant to use to access your account, you could also risk losing your investment as a whole.
By having a secure storage place for your crypto purchases, you can reduce the risk of encountering any theft incidents or losing your investments just because you forgot or lost your access codes. So choose a storage method immediately after making your order.
Krishna Murthy is the senior publisher at Finance XOD. He is not only the senior publisher but also the owner of Tricky Finance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.