Buying Your First Crypto Coin – If you are new to cryptocurrencies, figuring out how to buy Bitcoin, Dogecoin, Ethereum, and other cryptocurrencies is tricky. Fortunately, it’s fairly easy to parse strings. You can start investing in cryptocurrencies by following these 5 practical steps. We can even liken it to when you want to engage in MLB picks today.
However, once you’ve learned the lingo, understand the risk, and met all the criteria, the next step to crypto investing is to get started. In that case, you should follow our step-by-step guide to buy your first crypto coin.
Table of Contents
Select a Crypto Exchange Platform
There are many cryptocurrency exchanges that you can use to buy crypto online. However, some of the most popular ones are Coinbase, Gemini, and Kraken. These exchanges are online platforms where you can buy and sell cryptocurrencies.
If you plan to preserve your crypto on your account with an exchange instead of putting it into your wallet, you can select an alternative that uses offline storage and has sturdy protection against theft.
Some exchanges also have impartial insurance plan policies to help protect traders from viable hacking. And also, Exchange charges can fluctuate greatly and may additionally be utilized as a flat rate upfront or as a percentage of your trades.
Create an Account
Once you decide on a cryptocurrency broker or exchange, you can sign up for an account. Depending on the platform and the amount you plan to buy, you may need to verify your identity. This is a critical step in preventing fraud and meeting federal regulatory requirements.
You may also not be able to buy or sell crypto until you complete the verification process. The platform may also ask you to submit a copy of your driver’s license or passport, and you may even be asked to add a selfie to prove that your appearance matches the files you submitted.
Deposit Money to Invest
To buy cryptocurrency, you’ll want to make sure you have money in your account. You can deposit money into your crypto account by linking your bank account, authorizing a transfer exchange, or even paying with a debit or savings card.
Depending on the exchange or dealer and their funding method, you may need to wait a few days before using the money you deposit to buy cryptocurrencies. Remember, depositing funds into your account is not the same as buying cryptocurrencies.
As with typical investments, you never choose to leave money uninvested in your account. Once you fund your account, you will need to exchange your money for Bitcoin.
Place Your Crypto Order
Once there is money in your account, you are ready to place your first crypto currency order. There are loads of cryptocurrencies to choose from, ranging from conventional names like Bitcoin and Ethereum to more tenuous cryptos like Theta Fuel or Holo.
When determining which cryptocurrency to buy, you can enter its ticker symbol (Bitcoin, for the occasion, is BTC) and how many coins you want to buy. With most exchanges and brokers, you can buy fractional shares of cryptocurrencies, allowing you to buy a few expensive tokens like Bitcoin or Ethereum that otherwise cost a lot to own.
Choose a Storage Method
Cryptocurrency exchanges are not covered by government-backed financial institutions like the Federal Deposit Insurance Corp. (FDIC), making them open to scams and fraud. You could even lose your funding if you overlook or lose the codes to get entry to your account, as tens of millions of dollars of Bitcoin already has been.
That’s why it’s so essential to have a tightly closed storage region for your cryptocurrencies. As referred to above, if you’re buying cryptocurrency by using a broker, you may additionally have little to no desire for how your cryptocurrency is stored.
You can also now buy crypto through some digital price systems you might already have accounts with, like Venmo, PayPal, Skrill, Cash App, and even the investment app Robinhood. However, you need to be careful with the one you choose so that you don’t end up struggling and even losing your money.
Paypal and Venmo don’t let you switch your holdings into your crypto wallet, which means your non-public keys continue to be on the platform. Robinhood recently announced its growing crypto pockets imparting so clients can go their cash off-platform. So, read up before you make your decision.