How To Buy Cryptocurrency
Aspiring cryptocurrency investors need a few things in order to get started, including an account with a cryptocurrency exchange, personal identity papers if they are utilizing a Know Your Customer (KYC) platform, a safe connection to the internet, and a method of payment. Bank accounts, debit cards, and credit cards are all acceptable forms of payment. In addition to this, it is strongly suggested that you have a personal wallet that is separate from the exchange account.
- We have broken down the steps to buy cryptocurrency below.
- Simply select the cryptocurrency you’d like to know more about, and the guides at the bottom of this page will take you through all the necessary steps to begin investing.
- Remember that you still need to perform your research and select the best option for yourself based on your circumstances.
Step 1: Choose a Crypto Trading Service or Venue
The first step in buying cryptocurrency consists of choosing a crypto trading service or venue. Exchanges, payment services, and brokerages are the most common types of trading services and venues for obtaining cryptocurrencies. Cryptocurrency exchanges are the most user-friendly choice among these options since, in comparison to other locations, they provide a wider variety of services and a greater number of cryptocurrencies that can be traded.
You will be able to purchase, sell, and hold Bitcoin and other cryptocurrencies after registering for an account with a cryptocurrency exchange. When it comes to cryptocurrency, the safest course of action is almost always to choose an exchange that gives its customers the option of moving their funds to an online wallet of their own creation. It’s possible that this functionality won’t be relevant to those who are interested in trading Bitcoin or other cryptocurrencies.
Step 2: Connect Your Exchange to a Payment Option
Once you have decided which exchange to use, the next step is to compile a list of your personal documents. Depending on the nature of the transaction, these may include photographs of your driver’s license or Social Security number, as well as details on your place of employment and your source of funds. The regulations of the area in which you reside might have an impact on the kind of information that are relevant to you. The procedure is, for the most part, identical to that of opening a standard brokerage account.
After the exchange has verified your identity, you will be asked to connect a payment option. At the majority of exchanges, you will have the option of immediately connecting your bank account or using a debit or credit card.
There are different costs associated with making deposits using a credit card, debit card, or bank account. When choosing an exchange or determining which payment method is most suitable for your needs, it is essential to do research on the costs that are associated with each payment option.
To help you on your journey you’ll find the top 3 recommended exchanges for each cryptocurrency throughout our guides, these recommendations are based on functionality, reputation, security, support and fees. Some of the links included are affiliate, providing you with potential rewards and discounts, and us with a potential commission.
Step 3: Place an Order on your selected cryptocurrency exchange or brokerage
After selecting an exchange and establishing a connection to a payment method, you will be able to acquire Bitcoin (or other cryptocurrencies). Over the course of the last several years, cryptocurrency exchanges have gradually grown more commonplace. They have seen substantial growth both in terms of the liquidity of their features and the variety of their offerings. The way people think about cryptocurrencies is changing, and operational adjustments at cryptocurrency exchanges are mirroring that shift.
At this point in time, cryptocurrency exchanges have developed to the point where they almost have the same degree of functionality as the stock brokerages that they are analogous to.
The cryptocurrency exchanges of today provide a wide variety of order types and investment opportunities. Nearly every cryptocurrency exchange provides customers with the ability to place market, limit, and stop-loss orders, with the exception of a few.
Step 4: Safe Storage for your cryptocurrency
Bitcoin and cryptocurrency wallets are a place to store digital assets more securely. Keeping your cryptocurrency outside of the exchange in a wallet that is under your own control guarantees that no one else can access the private key that is associated with your funds. It also gives you the ability to store funds away from an exchange and avoid the risk of your exchange getting hacked and losing your funds.
Even though the majority of exchanges provide wallets for their customers, the security of these wallets is not their main concern. When retaining big amounts or holding cryptocurrencies for an extended period of time, we do not advocate utilizing an exchange wallet.