There have been high levels of volatility associated with cryptocurrency. As a result, the venture may sound challenging for beginners. However, it is not impossible to buy cryptocurrency if you know little about the market. Here are some of the tips to help you get started.
How You Can Buy Crypto
You need to open an account with a cryptocurrency exchange. You can choose from many exchanges and establish one that will best fit you. The best way to get started is by choosing one with a good reputation and high-security levels. You will also need to provide personal details and proof of identification when getting an account with the exchange. After opening your account, you will be required to verify it before using it for trading purposes.
The next step is selecting an appropriate cryptocurrency that you would like to buy and trade. Many cryptocurrencies are available in the market today, and they are growing in popularity each day. It would help if you carried out extensive research so that you can make a decision on which one would be appropriate for your needs. The easiest way of doing this is by visiting forums where crypto enthusiasts discuss their favorite coins.
In addition, there are also several digital wallets that you can use to store your cryptocurrencies. The wallets can be desktop, mobile wallets, or even hardware wallets. The choice is yours, depending on your preferences and the type of cryptocurrency you buy.
You will also need to set up an account with an online trading platform. These platforms will provide you with trading tools that will enable you to buy and sell cryptocurrencies and monitor their prices in real-time.
Where You Can Buy Cryptocurrency
Gemini, Coinbase, and Binance.US are some well-known cryptocurrency exchanges to buy the currency. They have low trading fees and high liquidity. You can also buy directly from cryptocurrency creators. Bitcoin is created through a process called mining. The person who has the computer skills and time to do this can sell their Bitcoin for real money on these exchanges.
One can value the different cryptocurrencies through market capitalization. It’s calculated by multiplying the cryptocurrency’s price by all of its circulating supply. The market cap for Bitcoin, which was created in 2009, has currently grown to roughly $200 billion. Ethereum, Ripple, and Litecoin are some of the popular cryptocurrencies. Other cryptocurrencies include Monero, Dash, NEM, and Dogecoin. The above list is based on market capitalization as of July 21st, 2017. Coinmarketcap.com is a good resource for keeping up with the latest cryptocurrency market trends and prices.
Some of these company interfaces may pose overwhelming interfaces, especially to beginners with minimal or no stock trades or investing background. However, they also offer easy options in line with the purchase and sale of cryptocurrency.
It is good to have an account with more than one exchange. For example, if you have your primary account with Bittrex, it would be wise to open another account with Poloniex. The trend allows you to set up transactions so that if one site is down, you can use the other to make your trades.
Centralized Exchanges
Cryptocurrency is transacted in various ways. One of the methods that you may choose is using a third party. In the model, you can make transactions through a third-party centralized exchange. Third-party centralized exchange means that the ownership of your cryptocurrency resides with the business. You will entrust the third party with the transaction as a buyer or seller. They will be responsible for the safety of your currency.
Three types of transactions occur in centralized exchanges: limit orders, market orders, and stop orders. In a limit order, you indicate how much you want to buy or sell the specification price you choose when placing an order. If the price rises or falls beyond what you set, then no action will occur unless it reaches the set level again. In a market order, you have to accept the currently available price. In stop order, the transaction will occur once the price reaches a certain level.
Most Popular Centralized Exchanges
The platforms involved in providing trading platforms for cryptocurrencies against other assets are also ranked in line with their popularity. Here are some of the most popular centralized exchanges.
Binance
It is the largest cryptocurrency exchange as it involves large volumes of daily cryptocurrency trading. It also involves the largest trading volume in the crypto market. Binance was founded in July 2017 by Changpeng Zhao, Yi He, and Ben Bin. The company is based in Hong Kong, and it focuses on the provision of a cryptocurrency exchange platform that allows users to trade cryptocurrencies against their local fiat currency.
Bitfinex
It is a cryptocurrency exchange platform launched in 2012 in Hong Kong by Raphael Nicolle, Samuel Reed, and Giancarlo Devasini. It involves large volumes of daily trading activities. The platform allows traders to trade cryptocurrencies against each other or fiat currencies such as the US dollar or Euro. Many active traders also use the platform for margin trading and margin funding for exchange on other platforms such as peer-to-peer fund transfer and lending services.
Kraken
Jesse Powell founded it in 2011, with its headquarters located in San Francisco, California, United States of America. It is a portal for buying and selling digital currencies such as Bitcoin, Ethereum, and other altcoins. Jesse Powell founded the exchange, and Payward Inc. later acquired it in 2013.
Bitstamp
It is a cryptocurrency exchange platform launched in 2011 in Luxembourg by Nejc Kodric and Damijan Merlak. It is ranked third in the list as it involves large volumes of daily trading activities, and it also provides advanced security features for its users. Bitstamp provides its services to customers in over 40 different countries across the globe. The platform allows traders to deposit fiat currency into their account or deposit cryptocurrencies such as Bitcoin, Ethereum, Litecoin, or Ripple into their account. Bitstamp charges a 0% commission fee on all trades made on its platform.
How to Buy Using Coinbase
There are several options used in purchasing cryptocurrency. Coinbase through the Coinbase app is one of the options. The Coinbase app is available on both IOS and Android. One could go to the app store on their respective devices and download the Coinbase App.
To purchase cryptocurrency through the Coinbase app, you need to have a Coinbase account. You must have enough funds in your Coinbase account to buy cryptocurrency. You must ensure that they have a debit card linked to their Coinbase account. The linking will allow you to make cryptocurrency purchases immediately after purchasing the Coinbase app.
Cryptocurrency is bought with US dollars or other fiat currencies, depending on which country you reside in for a specific period. Therefore, you must have enough fiat currency in your Coinbase account before purchasing cryptocurrency from Coinbase.
Coinbase does not have a fixed price for its services. Lack of a fixed service means that prices for the service vary based on market conditions, time of day, and other factors such as the availability of sellers at any given time and the current price of the cryptocurrency.
You must check the fees for the service before making any purchase. Fees can be found on their website and are updated according to market conditions and other factors, such as the availability of sellers at any given time and the current price of the cryptocurrency.
How Purchase Using Binance US
Purchase of cryptocurrencies is the first thing before trading. The finance homepage offers several ways to purchase cryptocurrencies. The easiest way is to use the Binance US platform.
You must check if you are eligible to purchase on Binance US as described in this guide. The confirmation will save you from making an incorrect purchase of a cryptocurrency on the exchange, which could result in a loss of funds. If you are not eligible, please do not make any purchases on the exchange, as it will be challenging and time-consuming for you to get your funds back from Binance.
If eligible, you will have to follow the steps below to purchase cryptocurrencies on Binance US.
Once you have registered, you will need to verify your identity by providing the address of your bank account. Verification is done to prevent fraudulent transactions.
If you are eligible, you will be redirected to the payment page of the Binance platform, where you can select the type of cryptocurrency you want to purchase and how much funds you wish to transfer. If your bank account has sufficient funds, it will be displayed as “Yes” on this page. In most cases, it is recommended that you choose a cryptocurrency with a market value of at least USD 100 or more.
You will then be prompted with a screen where you can confirm and submit your transfer request. Multiple banks allow for US dollar deposit transfers from international bank accounts, such as HSBC, Wells Fargo, and Citibank. You may also use wire transfers if your bank does not offer direct deposits for international transfers but only allows for direct withdrawals.
Once you are satisfied with the transfer amount, the platform will take you to the confirmation page, where you can review your order details and submit your request if you wish to proceed. The review can take 10-20 minutes for bank transfers and 2-3 days for wire transfers.
Once your transaction has been confirmed, the Binance platform will execute the purchase of cryptocurrency from one of its wallets and subsequently distribute it across all of its available exchanges. Since Binance is a centralized exchange, it handles all operations through its wallet.
How to Buy Using Crypto.com
The crypto.com App powers the Buy Crypto Feature offering a convenient and easy way the purchase coins.
Crypto.com is a digital asset wallet and exchange service that enables users to buy, sell, send, and receive cryptocurrencies in more than 100 fiat currencies worldwide through its mobile apps for Android and iOS and its web portal.
Here are the simple steps that can make the purchase a success:
1. Download the Crypto.com App from the app store on your smartphone or Google Play Store.
2. Register for an account and verify your email address (to activate your wallet).
3. Spend some time learning about how to use the app and buy cryptocurrencies with its Buy Crypto Feature.
4. Click on “Buy” and choose a coin (or tokens) that you want to buy.
5. Enter the amount of crypto you want to buy.
6. Click on “Buy” and wait for the transaction to be completed.
7. You will receive an email with a receipt from our wallet provider (not from Crypto.com) and your transaction details.
8. The new coins will be available in your crypto.com Wallet within 24 hours, or you can transfer them to a wallet of your choice (such as Jaxx) for further use.
9. Enjoy the purchase!
How to Buy Using Blockfi
Buying, selling, or exchanging cryptocurrencies can also be done using blockfi. Policies embraced by blockfi are stringent, a factor that has enhanced their ability to avoid any hidden charges. The main aim of blockfi is to provide a reliable and affordable service within reach of the common person. The platform offers a faster and cheaper method of buying cryptocurrencies. In addition, the fees charged by this platform are very competitive compared to other crypto exchange platforms.
Blockfi has been licensed by the New York State Department of Financial Services (NYSDFS), making it one of the few crypto exchanges approved by a regulatory body. Blockfi also offers loans in cryptocurrencies to people who have bought cryptocurrencies from their platform. Blockfi works well with blockchains such as bitcoin, Ethereum, Ripple, Litecoin, etc. It also provides users with a dashboard that gives them access to real-time information about their accounts, including the prices they bought or sold their coins in their accounts.
Here are the steps to follow if you want to open an account with Blockfi:
The first step is to create an account on their website.
The next thing you need to do is verify your email address. The verification will be necessary to complete the registration process.
Once you have verified your email address, you will be required to add your name and residential address in the space provided and click continue.
After that, click “I’m not a robot” and enter the verification code that will be sent to your email address.
Next, fill out all the fields on the page that appears and click continue.
Now, you need to add a phone number which will serve as a two-factor authentication method.
After this, enter your social security number and click continue.
After that, add a debit or bank account payment method together with an alternative that would serve as a backup plan.
After this, you will be asked to enter information about your employment status, the number of dependents, and annual income. Then click continue.
Then you will be required to upload an ID and a proof of address. You can upload either a driver’s license or a utility bill.
After uploading the documents, you will be required to verify your ID by entering the last four digits of your SSN in the space provided, and clicking continue.
Finally, click submit and wait for an email from Blockfi with further instructions on how to activate your account.
Once that is done, you can access your account dashboard, where you will find all the necessary details about your account.
Decentralized Exchanges
A decentralized cryptocurrency exchange is a peer-to-peer exchange. You do not need to rely on a third party to facilitate the transaction in the exchange model. The ownership of cryptocurrency remains with the buyer and seller at all times. You do not have to worry about fraud or theft since no one can manipulate the system without your consent. Inability to control takes place because each transaction will be verified by you using your private key before any transfer takes place.
Most Popular Decentralized Exchanges
Decentralized Exchanges have been encroaching on the centralized platforms’ usability and utility. However, the centralized platforms have upheld their top position in cryptocurrency trading. The following are the most popular Decentralized Exchanges in Cryptocurrency.
Trade.io – Trade Token (TIO)
Trade.io is a blockchain-based trading platform that offers its clients an assortment of services in cryptocurrency trading and investment, lending, and asset management. This exchange also offers its users an opportunity to earn a passive income by sharing revenue generated by fees on their network. The users will have access to the Trade Token (TIO), which will be used as a medium for exchange on their platform. Users can apply for membership in the Trade Token Club by purchasing at least 1000 TIO tokens, which entitles them to receive 50% profit sharing from all revenue generated within the network. In addition to that, there are interest payments on loaned funds and fees charged on transactions completed on their platform.
SushiSwap
The modified form of the Unsiwap protocol is the SushiSwap. The SushiSwap is known for allowing traders do the swapping of assets across a variety of blockchains. The protocol is designed to enable the traders to swap their holdings without worrying about transaction fees and network congestion.
The SushiSwap works by using a smart contract that is created on the blockchain of Ethereum. The smart contract is designed to store all the data of the assets that are being swapped. The smart contract will also determine whether a particular asset has been transferred or not, and it will also mathematically prove that a specific asset has been swapped.
How to Buy on SushiSwap
Purchasing cryptocurrency will start with creating a Coinbase account.
You will have to download the Coinbase application before opening the account.
You will then have to verify your ID by submitting your passport or driver’s license.
You will then be given a limit of $10,000 worth of cryptocurrency that you can purchase.
Click on the ‘buy’ button, and the platform will direct you to a screen where you can buy coins like Bitcoin, Ethereum, and Litecoin.
Follow the instructions on the screen to complete the transaction.
You can pay for your purchase in your local currency or cryptocurrency.
Buying Crypto on Uniswap
The use of Uniswap requires that you should have the Metamask extension in your device to be able to buy or sell crypto on UniSwap. Here are the steps to purchasing cryptocurrency on Uniswap:
- Go to the Uniswap Application
- Click on the “Buy” tab
- Copy your Metamask address, and paste it into the box on the right
- Click on “Buy Coin”
- You will be asked to confirm your transaction, and you should see a new balance in your account that is filled with bitcoin or Ethereum, or any other coin you have purchased
- You can now sell any of those coins you have in UniSwap
- You can also cash out any of those coins into a bank account by sending it to your bank account
Buying Crypto on PancakeSwap
Buying cryptocurrency on PancakeSwap starts with the transfer of BNB from Coinbase or finance exchange to Metamask. However, it would help if you first had your BNB in the exchange. The transfer is necessary because pancakes are sent to the exchange address by PancakeSwap and then sent back to the user. If you do not have enough BNB, you will not be able to send pancakes hence, losing them.
You will then move to pancakes finance and ensure that it is well connected to the Metamask wallet.
After that, click on “Buy Cryptocurrency” and then “Buy Bitcoin.” At clicking, you will enter the amount of BNB you wish to transfer from your exchange, which is usually in USD. Continue to enter the amount of bitcoin you want to purchase, and then confirm your transaction.
Buying Crypto on Bancor
Bancor is an Ethereum-based decentralized liquidity network that allows users to create smart tokens that others can use in exchange for any ERC20 token. Bancor is uniquely positioned to enable users to buy and sell tokens directly from the Bancor platform without first purchasing an intermediary token on a secondary exchange or waiting for a secondary market price discovery mechanism. A unique feature of Bancor is that it allows token buyers to use their tokens as collateral for instant conversion into any other ERC20 token on the Bancor network.
Here are the steps to creating crypto tokens on Bancor:
- Create a wallet on Bancor Network.
- Link your wallet with your ETH address.
- Deposit any ERC20 tokens you want to buy on the Bancor Network into your Bancor wallet.
- Buy tokens from the Bancor network by sending ETH from your wallet to the smart contract address.
- You can perform multiple purchases at once by repeating step 4 until all token buys are complete.