There are hundreds of crypto currencies available in the market and the most famous of them are Bitcoin, Dogecoin, Ethereum, and many others. If you are new in the world of crypto currencies then it can be confusing at the first for you. There are some steps through which you can buy crypto currencies.
Choosing a Broker or Crypto currencies Exchanger:
For investing in crypto currencies first step is to find a broker or currency Exchange. But before buy crypto currency there are some key differences between them you have to keep in mind.
What is a Crypto currency Exchange?
A crypto Currency exchange is a platform where many buyers and sellers meet to trade crypto currencies. Exchanges have often low fees but they tend to have more complex interface with multiple trade types and have some advanced performance charts.
There are some famous crypto currency exchanges which are Coinbase, Gemini and Binance.US. For a new beginner it may be sometimes difficult but they also provide user friendly easy purchase options.
What are Crypto Currency Brokers?
Cryptocurrency brokers take the complexity out during the purchasing crypto, and provide easy to use interface that interact with the exchanges for you. Some of these brokers charges higher fee in return of any exchange but some of them claim to be free. Robinhood and SoFi are the most well known crypto brokers.
During the currency exchange you have to be very careful with these brokers because you may face some kind of restrictions on the currency holdings off the platform. If you are contacting with these two brokers Robinhood and SuFi you cannot hold out your currencies out of your account.
This is not a big deal it is due to some security issues as many crypto investors prefer the crypto wallets. Hardware type of crypto wallets are also available that provide even more security without connecting them with the internet.
Creating and Verifying your Account:
After selecting your trusted crypto currency exchange or broker the next step is to sign up to an open account. You have to verify your identity before you buy a plan because it is very essential step to prevent from frauds.
Without verification you cannot buy or sell cryptocurrency. In verification the platform ask you to upload your driving license or passport and may even ask you to upload your selfie to recognize you. All of these steps are the part of your account verification.
Depositing Cash to Invest:
Before buying crypto you have to be insuring that you have funds in your account. For this you have to link your bank account to your crypto account for transferring your funds.
You can transfer the cash through wire transfer or with any your debit or credit card. Before depositing the money to buy cryptocurrency you have to wait for a few days it sometimes depends on the exchange or brokers because of your funding method.
If you are using your credit card for funding so beware of it as many brokers or exchange who allows you to transfer money on credit card may be extremely risky and expensive. Because many credit card companies provide you fund to buy some cryptocurrency on high interest rate as compare to the regular purchases.
Placing your Cryptocurrency Order:
After transferring the money in your account you are ready to buy your cryptocurrency orders. Hundreds of cryptocurrencies available in the market in which well known are Bitcoin and Ethereum. When you decide to place an order of your cryptocurrency you can enter its ticker symbol such as Bitcoin for its instances is BTC. You can purchase fractional shares of cryptocurrencies with your brokers or exchanges which allow you to buy a silver of high priced tokens like Bitcoin or Ethereum.
Top 10 Currencies with their symbol:
On the basis of market capitalization each cryptocurrency have some symbol such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Dogecoin (DOGE)
- Cardana (ADA)
- XPR (XPR)
- USD Coin (USDC)
- Palkodat (DOT)
- Uniswap (UNI)
Selecting some Storage Method:
Cryptocurrencies exchanges and brokers are not backed by protections like Federal Deposit Insurance Corp. (FDIC) so they have always a risk of being hacked or theft. So there is a chance to lose your all investment even you have forgotten your code to access your account. Therefore it is important to have a secure storage place for your cryptocurrencies.
Some Alternative ways to buy Cryptocurrencies:
Buying cryptocurrency is become a major trend now a day as it a volatile but a risky investment choice. If you are not satisfied with the exchanges and brokers to buy cryptocurrency with them then there are some other options available to buy cryptocurrency.
Crypto Exchange-Traded Funds (EFTs):
EFTs are most popular investment tools to buy exposure to hundred of individual investments in just one fell swoop. This thing shows that they are less risky and provide you immediate diversification in some individual investments. EFTs allows you to invest in many currencies at once.
Investing in Different Companies:
If you are interested to invest in different companies which provides different products and services but still want to exposure to cryptocurrencyy market then you can buy stocks of these companies that use or own cryptocurrencies and behind all of them Blockchain is available to power them.
For buying some shares in public company you will need an online brokerage account. There are following accounts available to buy shares of different companies.
- Nvidia (NVDA). This company design and sells graphic processing units. Which are at the heart of the systems used to mine cryptocurrency.
- Paypal (PYPL). It is the most common and normally using platform. People using it to transferring money to their home friends or for buying some online items. This payment platform expanded itself to allow its customers to buy and sell select cryptocurrencies with their Paypal and Venmo account.
Before investing into any cryptocurrency or individual companies you have to make sure to consider your investment goals and financial situation because investing in cryptocurrency or individual companies that have a heavy stake in it can be extremely volatile and a single tweet can make its price plummet so we can say that it’s a very speculative investment have you have to invest carefully.
