So you want to buy some cryptocurrency but don’t know where to start? Don’t worry you aren’t alone. Luckily you don’t need to be a blockchain expert to purchase crypto.
To start off, you’ll need to decide which platform of service you want to use to purchase Crypto. Today we'll be talking about the two most common platforms; crypto exchanges and crypto brokerages.
A crypto exchange is a platform that allows users to trade (buy & sell) in cryptocurrencies like Ethereum, Litecoin, and Bitcoin. They function a lot like traditional stock markets and brokerage firms, except users trade cryptocurrency instead of stocks.
A crypto brokerage, on the other hand, acts as a middleman between a user and the cryptocurrency markets to facilitate the buying and selling of cryptocurrencies. This means that users aren’t trading with each other based on current market prices. Instead, the price is set by the broker.
In this guide, we’ll be focusing on crypto exchanges, which are undoubtedly the most popular method through which new crypto enthusiasts trade.
Now you have decided which platform you will be using, it’s time to set up your account! Exchanges will more often than not ask you to verify your account email address, phone etc, and sometimes also ask you to provide personal information such as a picture of your identification. Now yes, it’s true that some individuals prefer to use crypto for anonymity. However, without verification you might not be able to make purchases on the platform, and if you do wish to cash-out your crypto and deposit funds back to your bank account later on, this will make the cash-out process simpler.
Let’s whip out that cold hard cash and get some crypto! First things first, you'll need a bank account. Got that? Cool. Now, link your bank account to your crypto account. Now, fair warning, this verification process can be lengthy, but it will be worth it as it will make purchasing crypto much easier in the end. Additionally, you’ll also be able to buy and sell directly through your account, rather than depositing money onto the exchange itself. The process varies from platform to platform, but generally, the option to connect your bank account is usually found in the wallet, deposit or bank account section.
No bank account? You can also fund your account by making a payment via credit or debit card, or by wire transfer. Double-check the terms and conditions on the platform you are using though, as this method might incur you additional fees or charges.
Now you have got yourself a nice new crypto account, it’s time to make a purchase! To get yourself some crypto, you need to put an order through for how much you would like. Once you place the order to purchase, let’s say, 0.01 BTC, the order will be fulfilled at the current best available market price. Now, similar to when you buy any other currency, there is an exchange rate. The fee varies and it depends on the type of transaction and the platform. Once again, be sure to check the terms and conditions of the platform you are using as cashing in fees might be minimal, but cashout might cost you more than you expected.
Your account is up and running and you might have already used your crypto to play in an online casino (We’ve heard BetBeast is a good one), or finally bought those Nickelback concert tickets (It’s ok we won’t judge). But for added security you might want to look at storing your crypto in a wallet, especially if you don't use it that often. Some of the most common ways to store crypto are by storing them in either a software (hot) or hardware (cold) wallet.
A hot wallet is a crypto wallet that stores its information online and can be run by and connected to devices such as tablets, computers, or phones.
A cold wallet is a crypto wallet that isn’t connected to the internet. Information is stored offline meaning that they aren’t great if you trade everyday, but are more secure for storing crypto.
Now don’t forget, when you store cryptocurrency solely online, you can set yourself up to lose your investment due to loss of access keys, computer failure, theft & more. For that reason, having a split between the two makes sense. Only keep what you plan to use in your hot wallet at one time, and once you have made your transaction, move them back to your cold wallet.
All in all, the crypto world is part of such an exhilarating online world, and you can learn something new everyday, especially as a beginner. But remember, trust your gut! Follow your instinct rather than blindly following the advice of others. Use reputable platforms, keep your information safe, and only invest what you are willing to lose. Always do your own research.