Buy Cryptocurrency On Changelly – Using Any Of These Options
How to buy cryptocurrencies?
If you are new to the world of cryptocurrencies, it can be confusing at first to figure out how to buy Bitcoin, Ethereum, Dogecoin and other cryptocurrencies. Fortunately, it is quite easy to learn how to do so. You can invest in cryptocurrencies by first choosing a broker or cryptocurrency exchange. While you can buy cryptocurrencies with both, there are a few important differences between them, which we’ll cover in this overview of cryptocurrencies.
Since the prices are different on different exchanges, it is theoretically possible to make money with them. Buy cheaper here and sell at a higher price on another. However, given the fees for transferring cryptocurrencies between exchanges, this is not an option for inexperienced traders. Only experienced traders can make money with this.
The easiest and most convenient way to exchange and buy cryptocurrency is through a specialised exchange. The algorithm of a cryptocurrency exchange is simple. The seller creates an order to sell bitcoin or another coin, and the buyer creates an order to buy. These orders go into an order book, which contains information about how much someone wants to trade and at what price.
If the trading interests of the buyer and seller match, the corresponding bids coincide and disappear from the order book. The transaction is complete – the funds have been deposited into the users’ accounts.
Some of the most well-known cryptocurrency exchanges are:
In most cases, the interests of the parties coincide in terms of the price of the cryptocurrency, but not in terms of the quantity of coins to be sold/acquired. In this case, the order balance simply remains in the order book and is then fully covered by other offers. I.e. the seller’s cryptocurrency can be redeemed in small portions. All this happens automatically. The exchange determines in real time whether the price interests in the order book overlap, and if they do, the bids match and a transaction occurs.
Spot trading is the easiest way to buy cryptocurrency on the exchange. The spot market can be seen as a kind of space where transactions are made “on the spot”. The transactions are settled immediately. This is because the buyer or seller agrees to the current market price and confirms the transaction with one click.
Brokers make it easier to buy cryptocurrencies by offering easy-to-use interfaces that interact with the relevant exchanges for you. Some of them charge higher commissions than exchanges. Others claim to be “free” but make money by selling information about what you and other traders are buying and selling to large brokerages or funds, or by not executing your trade at the best market price. Robinhood and SoFi are two of the most well-known crypto brokers.
Although they are undeniably convenient, you need to be careful with brokers as you may encounter restrictions if you want to remove your cryptocurrency assets from the platform. Robinhood and SoFi, for example, do not allow you to transfer your cryptocurrency assets from your account. This may not seem like a big deal, but advanced crypto investors prefer to store their coins in crypto wallets for added security. Some even opt for hardware crypto wallets that are not connected to the internet for even more security.
Alternative ways to buy cryptocurrencies
Even though buying cryptocurrencies is currently a big trend in Germany, it is an unstable and risky form of investment. If investing in cryptocurrencies on an exchange or via a broker does not seem to be the right choice for you, there is an indirect investment option in Bitcoin and other cryptocurrencies. For this, wait for exchange-traded cryptocurrency funds (ETFs).