How to Buy Cryptocurrency – Forbes Support

Editorial Review: We receive a commission from affiliate links on Forbes Advisor. The Commissioners are not concerned with the opinions or evaluations of our editor.

If you are new to the world of crypto, it can be embarrassing to wonder how to buy Bitcoin, Dogecoin, Ethereum and other crypto currencies. Thankfully, learning the ropes is easy. You can start investing in cryptocurrency by following these five easy steps.

1. Choose a Broker or Crypto Exchange

To buy cryptocurrency, you must first select a broker or a crypto exchange. While it allows you to buy crypto, there are some important differences between them to keep in mind.

What is Cryptocurrency Exchange?

A cryptocurrency exchange is a platform where traders and brokers come together to trade crypto currencies. The costs of exchanges are relatively low, but the more complex they are with multiple trading platforms and high -performance certifications, they can be a threat to new cryptocurrencies.

Some of the most popular cryptocurrency exchanges are Coinbase, Gemini and Binance.US. While these traditional marketing companies can cater to beginners, more so those without end -to -end marketing costs, they also offer easier marketing options.

There is satisfaction in the price, however, the cost of the startup options is much higher than the cost of buying the same crypto through each traditional trading platform. To keep costs down, you may want to learn how to use traditional trading platforms before you make your crypto-market or later.

An important note: As a newcomer to crypto, you’ll want to make sure your conversion or conversion option allows fiat currencies to be traded with US dollars. Some exchanges only allow you to buy crypto using a different crypto, which means you have to find another exchange to buy the tokens you want to convert. before crypto trading can be started on that site.

What is Cryptocurrency Broker?

Cryptocurrency traders take on the complexity of buying crypto, giving users easy access to exchanges for you. Some increase fees rather than changes. Others say it’s “free” while making money by selling information about what you and other brokers are buying and selling to brokerages. or money or to execute your business at the best possible price. Robinhood and SoFi are two of the most popular crypto traders.

While they cannot be ruled out, you need to be wary of brokers as you may face limitations when moving your cryptocurrency holdings from the site. In Robinhood and SoFi, for example, you cannot change your cryptocurrency from your account. This may not be a big deal, but high -end crypto investors want to keep their money in crypto wallets for added security. Some choose hardware crypto wallets that are not connected to the network for added security.

2. Create and verify your account

When you decide to be a cryptocurrency broker or exchange, you can sign up to open an account. Depending on the site and how much you plan to buy, you may need to verify your knowledge. This is an important step in preventing fraud and meeting federal law requirements.

You cannot buy and sell cryptocurrency until you have completed the verification process. The platform may ask you to send a copy of your driver’s license or passport, and you may be asked to upload a selfie to verify your identity as well as the documents you submit.

3. Leave the money to invest

To purchase crypto, you need to make sure you have money in your account. You can deposit money into your crypto account by connecting to your bank account, accepting a wire transfer or paying with a credit or debit card. Depending on the customer and your currency type, you may have to wait a few days before you can use the money you have deposited to buy cryptocurrency.

Here’s a great customer to watch out for: While some exchanges or lenders will allow you to deposit money from a credit card, doing so can be very risky – and expensive. Credit card companies offer cryptocurrency transactions with credit cards as a way to earn money. This means that they charge a higher interest rate than regular sales, and you have to pay interest rates. For example, you may have to pay 5% of the amount when you make an initial investment. This depends on the fees your crypto exchange or clients pay; They can run up to 5% on their own, which means you’ll probably lose 10% of your crypto sales in fees.

4. Place your Cryptocurrency Order

Once the money is in your account, you are ready to place your first cryptocurrency order. There are hundreds of crypto currencies to choose from, from popular names like Bitcoin and Ethereum to mysterious cryptos like Theta Fuel or Holo.

When you decide which cryptocurrency to buy, you can enter its ticker symbol — Bitcoin, for example BTC — and how many currencies you want to buy. With so many exchanges and brokers, you can buy broken pieces of cryptocurrency, allowing you to buy a piece of high -end tokens like Bitcoin or Ethereum to take thousands for it. .

The indicators for the 10 largest cryptocurrencies relative to market size * are as follows:

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Currency (USDT)
  4. Binance Coin (BNB)
  5. Cardana (ADA)
  6. Dogecoin (DOGE)
  7. XRP (XRP)
  8. USD (USDC)
  9. Polkadot (DOT)
  10. Uniswap (UNI)

* Due to market size on June 28, 2021

5. Select a maintenance procedure

Cryptocurrency exchanges are not supported by hedge funds such as the Federal Deposit Insurance Corp. (FDIC), and they are vulnerable to theft or hacking. You could lose your savings if you forget or lose the codes to enter your account, such as millions of Bitcoin. That’s why it’s important to have a secure backup for your cryptocurrencies.

As mentioned above, if you are buying cryptocurrency through a seller, you may have less choice in how to manage your cryptocurrency. If you buy cryptocurrency through an exchange, you have additional options:

  • Put the crypto on the switch. When you buy cryptocurrency, it is stored in a crypto bag attached to the exchange. If you don’t like the supplier your changing partners or you want to move him or her to a more stable location, you can change him or her from changing to a hot or cold bag. Depending on the change and the size of your transfer, you may have to pay a small fee to do this.
  • Hot bags. These are crypto wallets that are stored online and run on network devices, such as tablets, computers or phones. Hot wallets are convenient, but they are more at risk of theft even if they are always connected to the internet.
  • Cold bags. Cold crypto wallets are not connected to the internet, making them your most secure option for storing cryptocurrency. They take the form of external devices, such as a USB drive or hard drive. You need to be wary of cold wallets, however — if you lose the key associated with them or the device is broken or dropped, you won’t be able to get your cryptocurrency back. While it can work just like some hot bags, some are stored by security guards who can help you get back into your account if you get stuck.

Other Ways to Buy Cryptocurrency

While buying cryptocurrency is an important trend right now, it is a difficult and challenging investment option. If investing in crypto in a exchange or through a broker doesn’t seem like the right option for you, here are some options to invest in Bitcoin and other cryptocurrencies incorrectly:

1. E kali no Crypto Exchange-Traded Funds (ETFs)

ETFs are very popular investors that allow you to buy information on hundreds of single stocks in a single fall. This means that it offers faster and less diversification than investing in single investments.

There is a huge demand for cryptocurrency ETFs, where you can invest in crypto currencies at the same time. Cryptocurrency ETFs are not available for everyday investors, but some are coming soon. In June 2021, the U.S. Securities and Exchange Commission (SEC) is reviewing three cryptocurrency ETF applications from Kryptcoin, VanEck and WisdomTree.

2. Introduce Cryptocurrency -enabled services

If you want to integrate businesses with products or services that are legal – but always want to know the cryptocurrency market – you can buy stocks of cryptocurrencies. companies that use and own cryptocurrencies and the blockchain to control them. You need an online brokerage account to buy shares of public companies such as:

  • Nvidia (NVDA). This technology company designs and sells cryptocurrency chips, which are at the heart of the systems used to mine cryptocurrency.
  • PayPal (PYPL). This is a popular option for those who buy things online or send money to family and friends, this payment platform has been expanded to allow customers to buy and sell products. select cryptocurrencies with their PayPal and Venmo accounts.
  • Quarter (SQ). This payment service provider for small businesses has sold more than $ 220 million in Bitcoin since October 2020. In February 2021, the firm reported that Bitcoin accounts for about 5% of the money in its portfolio. In addition, Square’s Cash App allows you to buy, sell and store cryptocurrency.

As with any investment, you should consider your current financial goals and financial situation before investing in cryptocurrency or private companies that have a significant stake. Cryptocurrency can be very simple – a single tweet can lower its price – and it’s a reasonable price to pay. That is, you have to spend it wisely.

Leave a Comment