Are you considering entering the cryptocurrency market? Buying and selling cryptocurrency is one of the most lucrative ways of earning money today. However, it’s also risky.
If you want to buy and sell cryptocurrencies, you need to know the most reliable cryptocurrency platforms. You should also be aware of the scams and possible risks of investing in cryptocurrency. Continue reading to learn how to buy cryptocurrency safely and easily.
What You Need to Know Before Buying Cryptocurrencies
Before you become a cryptocurrency investor, you need to have a few things first. These include:
- A cryptocurrency exchange account
- A fast and secure internet connection
- Personal identification documents for users of a Know Your Customer (KYC) platform
- A method of payment (like bank accounts, debit cards, and credit cards)
- Personal wallet, which is not the same as an exchange account
Preparing to Become a Cryptocurrency Buyer or Investor
Before you jump into the digital currency industry, you should know why you’re investing in it. Are you entering the crypto market because of the hype only? If you are, you should reconsider committing to it.
The best way to prepare yourself as a crypto investor is to get a feel for the industry. Learn about the various tokens, how they differ, their pros, and their cons. It also helps to familiarize yourself with how blockchain technology works and how cryptocurrency is unique from money.
Join online communities of crypto enthusiasts to stay updated with the latest trends and news. Also, get your news about cryptocurrency projects from white papers, statistics, and studies. Finally, remember that timing is one of the most crucial factors to success in cryptocurrency investment. The best way to develop a “spider-sense” on when to buy is to study and monitory the industry before doing anything.
Also read: Top 10 Cryptocurrency Research Tools Help for New Investors
Be Meticulous with Your Privacy and Security
The private key to a public address on a Bitcoin blockchain is your main method of authorizing transactions. It is what cybercriminals want to steal from you. In January 2020, cybercriminals released over 600 million crypto-malware, increasing by 16 million more after two months.
Careless cryptocurrency investors may lose access to their accounts, tokens, and money when they lose or share their private keys. Thus, you need to be smart with your privacy and security.
How to Buy Cryptocurrency
If you’re new to cryptocurrency, you may have a misconception about how to buy it. You may think it’s like buying Forex stocks. While they have their similarities, crypto is free of government, legal, and national control.
The steps for buying cryptocurrency are also different, which we’ve outlined below:
1. Choose a Crypto Trading Service or Platform
Step one is to choose a trading service or venue for cryptocurrencies and to sign up for it. Some popular platforms for buying, investing, and trading cryptocurrencies include:
eToro
eToro offers one of the easiest ways to buy cryptocurrencies like Bitcoin. Registering on eToro is smooth and easy. You also don’t need to pay any fees to deposit on it, and other fees are lower, making it one of the cheapest options for buying tokens.
Plus, eToro is a renowned site for trading stocks, cryptocurrency, and other financial assets. The Financial Conduct Authority of FCA also regulates the company, ensuring a safe platform for its users. Another feature of eToro is that it lets you use various deposit methods, making it convenient. These payment methods include PayPal, bank transfer, credit card, Skrill, and more.
Coinbase
Coinbase is another go-to platform for many veterans and new cryptocurrency investors. Today, it has over 13 million users and allows the trade of over 15 cryptocurrencies. Its best feature is that it uses an absurd level of security. You can rest assured that your assets and money will remain protected and secure in Coinbase.
The trading company also has insurance. Plus, in all countries where it operates, the platform is legal and regulated. If you’re from a different country, you won’t have problems accessing the platform. It also has an easy-to-use app and website interface, making it one of the easiest platforms to use.
Abra
Abra is perfect for people who only have a mobile phone with which they’ll buy cryptocurrencies. It is one of the easiest platforms to use, thanks to its convenient and intuitive mobile app. You can even invest in 10 cryptocurrencies at once. It’s thanks to Abra’s unique crypto index, BIT10.
It has lower fees than average if you deposit money through your bank. It’s also unique in that every Abra user is the holder of their funds. Abra never takes custody of its user’s funds other than its own. Although its best features are only available to US and Philippines customers, new Abra users also get an excellent first deposit bonus.
Also read: 3 Ways Software to Help You Improve Your Trading Decisions
Some more excellent crypto trading services and platforms include:
- Kraken
- Gemini
- US
- Bittrex
- Huobi and Huobi Global (for non-US residents)
- LocalBitcoins
- io
Where Can I Most Safely and Securely Buy Cryptocurrencies?
Our top picks for new users that want safe and easy options are:
- eToro
- Abra
- Coinbase
- Gemini
2. Pick a Payment Option
Once you’ve chosen an exchange platform, the next step is to connect the exchange to a payment option. For this step, you must collect your documents. The information you must provide will depend on where you live and the laws in it. The most common documents and information you must provide are:
- Driver’s license or Social Security number
- Employment information
- Information on your source of funds
Next, connect your bank account directly. You may also use a debit or credit card to place an order. Be ready to pay charge fees per transaction from exchanges or deposits.
Are you ready to buy cryptocurrency but aren’t sure where to get your funding? Paydepot is an excellent choice if you need funding to buy or invest in cryptocurrency.
3. Place a Cryptocurrency Order
Once you’ve chosen the exchange and connected a payment option, you’re ready to buy cryptocurrency. The process is as easy as declaring how many tokens you want to buy and then clicking “Purchase.” However, the process will vary depending on the platform you use.
Conclusion
It’s not easy to find a crypto trading platform and to learn how to invest in cryptocurrency. If you’re ready to buy cryptocurrency, the first step is to pick a crypto trading service or venue. The next step is to provide the needed information to connect your payment option. Once you’ve done that, you’re ready to buy cryptocurrencies.
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