Here is how to buy Cryptocurrency from the top crypto Broker or Crypto Exchange and how to store your coins.
How To Buy Cryptocurrency?
For all those that are new to the world of crypto, trying to find out how to buy cryptocurrency like Bitcoin, Cardano, Ethereum, Dogecoin and other cryptocurrencies can be complex.
The complexity of how to buy cryptocurrency is due to the fact that it’s a new technology and there are few tutorials on these yet.
It is however easy to learn how to buy your first crypto currency.
You can also start your investing in cryptocurrency through these simple steps and guide.
You need to understand which crypto to buy, where to buy the coin or token and the best strategy on how to store your cryptocurrency.
Choosing a Crypto Exchange
The first step to buy cryptocurrency is to pick a broker and, or a crypto exchange.
Both of these can let you in on how to buy Cryptocurrency, however, there are a some unique differences between them.
What Is a Cryptocurrency Exchange?
In it’s simplest form, a cryptocurrency exchange are platform to buyers and sellers cryptocurrencies.
Most exchanges in the market have low trading fees. The only complexity with most crypto exchanges are their interfaces.
Aside the interface, they are known to have multiple trade types and complex performance charts. These could be overwhelming for new crypto investors and beginners.
Some of the popular and well-known cryptocurrency exchanges are Coinbase, Gemini, and Binance.US.
As you can see above, these exchanges could have complex trading interfaces which may overwhelm beginners.
If you don’t already have a basic or advance background in trading stocks or options, these could be less friendly.
What Is a Cryptocurrency Broker?
Unlike an exchange, Cryptocurrency brokers simplify and take the complexity off purchasing crypto.
Crypto brokers offer easy-to-use interfaces though some charge higher fees than your average exchanges.
Some of these brokers can offer free trading fees but, there is always a catch – they make their money by selling information about your activities on the platform to large brokerages.
Some brokers are notorious for not executing your trade at the best market price after successfully learning how to buy cryptocurrency.
Robinhood US and SoFi are two of the top well-known crypto brokers around.
While these services are undeniably convenient, you have to be careful with these brokers as you may face restrictions on transferring your cryptocurrency profits outside the platform.
Take Robinhood and SoFi for example, you are unable to transfer your crypto portfolio out of your account.
That means, you cannot hold your coins in crypto wallets for extra security at will. So, if you have a hardware crypto wallets, you may be unable to use them with most cryptocurrency brokers.
Creating and Verifying Your Account
Now that you must have decide on a cryptocurrency broker or exchange (based on which suits your need), you can easily sign up to open an account.
Based on the platform you’ve selected and the amount or worth of crypto you plan to buy, you may have to verify your identity on an exchange or broker.
This, according to these platform is an essential step to prevent fraud and to also meet federal regulatory requirements which is a total contradiction to Blockchain technology.
You may Signup and fund your account but you may not be able to buy or sell cryptocurrency until you must have complete the necessary verification process.
Some platforms may require you to submit a copy of your driver’s license or international passport, upload a clear selfie to prove and ensure your appearance matches the document submitted.
Deposit you Cash to Invest
Before you buy your first cryptocurrency, you’ll need to ensure there is enough funds in your account.
There are ways of to deposit money into your crypto account either by linking your bank account, adding your credit or debit card, and or authorizing a wire transfer.
Most exchange or broker may require you wait a few days before you can utilize the money you deposit to buy cryptocurrency on your account.
A few exchanges or brokers will allow you to deposit money from your credit card, which by doing could tend to be risky and expensive.
This is because, most card companies process cryptocurrency purchases with your debit or credit cards as cash advances.
Simply put, your order are subject to higher interest rates than your daily and regular purchases.
Imagine you paying 5% of the transaction on your cryptocurrency purchase amount when you make a cash advance. This excludes any fees that your Cryptocurrency exchange or brokerage may charge you (which could be up to 5%)
Now, that’s almost a lose 10% of your crypto purchase that has been lost to fees.
Placing Your Cryptocurrency Order
As soon as you have money in your crypto account, you are now ready to place your first cryptocurrency order on the platform.
There are a handful (up to a thousand) cryptocurrencies or coins to choose from, the range includes popular crypto like Bitcoin, ApeCoin and Ethereum.
After you have decided on which of the cryptocurrency to buy, you can now decide how many coins you want to purchase.
You may decide to purchase a full coin or fractional shares of cryptocurrency.
Buying cryptocurrency for beginners
For all beginners who might still find the above steps on buying cryptocurrencies complex, here is a yet simplified step.
- Decide where to buy your crypto (Exchange or broker)
- Choose how you will pay for your coin (Bank Transfer, Debit or Credit Card)
- Add funds to your account (Deposit USD or your local currency)
- Select the cryptocurrency you want to purchase
Below are some of the top 10 biggest cryptocurrencies based on their market capitalization (These are dynamic and subject to change)
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Cardana (ADA)
- Dogecoin (DOGE)
- XRP (XRP)
- Solana (SOL)
- Polkadot (DOT)
- Uniswap (UNI)
Where to store your cryptocurrency?
Now that you have decided on what crypto to buy and determined which cryptocurrencies you want to add to your portfolio, your next major decision will be how you want to store your assets safely.
Crypto assets often require a private key, which will prove your ownership of these cryptocurrencies and is very expedient for carrying out transactions.
It is important to note that, should you lose your private keys, you’ve surely lost your cryptocurrency.
Likewise, if a third-party gets access to your private keys, they can access with your cryptocurrencies and transfer, sell or withdraw at will.
Most crypto owners rely greatly on digital wallets to securely and store their crypto securely.
Here are some options to consider when it comes to your choice of digital wallets.
You can choose to keep your cryptocurrency on the exchange or platform where you purchase it.
The disadvantage could include risk if the provider has a security breach or someone hack your individual credentials, your cryptocurrency portfolio could be at risk.
Most times, people who store their crypto on-platform storage do so because they think they might want to trade their crypto soon, or to participate in the exchange inbuilt staking and rewards programs to yield returns.
Since there are numerous treats and risk of leaving large balances on crypto exchanges – it is important to store your cryptocurrency in a noncustodial wallet.
These are divided into two categories. These are:
- Hot wallets
- Cold wallets
Hot wallets usually have some online connectivity for ease of use like connection to a WiFi, Hotspot, etc. These can expose you to some security vulnerabilities.
Cold wallets on the other hand are offline. These are physical devices that are totally unreachable except you have them in your material possession.
Top Exchanges to buy your cryptocurrency