How to Buy Cryptocurrency?
Are you wondering how to start building your cryptocurrency portfolio? It is all about investing. It can be confusing, settling for a specific coin, bearing in mind that tons of them are in circulation. For instance, there is Bitcoin, Ethereum, Dogecoin, and many others. But the good thing is that there are ways that you can learn how to buy and make it a success story.
Remember that cryptocurrency can be used as a store of value or a medium of exchange, and the reason to get it right the first time. Below are several ways to guide you through the journey of buying cryptocurrency, and as you proceed, you will find it even easier to trade.
- Choosing the Exchange Platform.
Before settling for an exchange platform, here is what you need to do.
- Choose an Exchange that is Operational in your Country– The fact that there are many exchanges all over, not all are accepted in your country, and the need to ensure that you choose the one that is accepted where you stay. This ensures that you operate within your country’s governing laws and that your cryptocurrency is safe- you can easily confirm where it is operating from in your country by searching the about us page and confirming its legitimacy.
- Use an Exchange within your Operational Limits- Some exchanges allow withdrawal at free will, while others prohibit it for a defined period, mostly if you want to invest. Be sure to work on an exchange that matches your needs, depending on how you plan to use the cryptocurrency.
- Set Boundaries to Exchanges that Accept Traditional Money– When starting, anyone can use fiat currency (the traditional money), which is used to buy crypto. In such a case, you do not have to register with an exchange that accepts cryptocurrency for payments. You can also link to other payment modes, such as PayPal, debit, or credit cards, so long as they are convenient for you.
On the other hand, choose an exchange that offers an excellent option on the time limits, for instance, the time it takes to complete a transaction.
- Determine the type of Cryptocurrency you Wish to Trade With– There are many of them in the market; research for the one that is convenient for you. For instance, Bitcoin holds the largest share in the world of cryptocurrency.
However, ensure that you choose the one that is fully compliant in your country based on the checklist available.
- Confirm the Fees Chargeable by Different Exchanges– Exchanges have different fees, including network conversion fees, and transaction fees. Evaluate what works best for you and the bank transfers to ensure convenience is core.
- Confirm how Reputable the Exchange is- Before settling for a specific exchange, carry out some basic research based on reviews left by previous users. This will enable you to make an informed decision.
You may find that some have no reputation, and others have had security challenges, all of which will give you an idea of the exchange’s legitimacy.
- Evaluate the Accessibility and Ease of Usage – This consideration is essential. How user-friendly is the exchange? For instance, among the best user-friendly exchanges include CoinMama, Coinbase, Bitit, among others. Research from reliable resources, and you will be good to go.
- Security– Many people miss on this point and lose their portfolio. A good exchange should have more than one password, for instance, a two-factor authentication code, or external storage, to minimize the chances of vulnerability to its users.
- Opening an Account
When all is said and done, the time to open an account gets on hand, and some of the ideas you need to implement to ensure a successful account creation are.
- Consolidating your Verification Documents– These include your identification documents, email for verification codes, and payment information.
Note: Never use public Wi-Fi to create your account in order keep it private; otherwise, you risk it being hacked online.
- Provision of Personal Information– Ensure that you provide the relevant personal information requested on the home page when signing up. This includes your name, address, email address, complicated passwords, and any other applicable depending on the exchange’s requirements.
- Enhancing your Security Details-When done with the registration, the next step is strengthening your security details. You will receive an email confirmation with a code that will advise on adding a 2FA. Once done, you will be required to enter the 2FA in every login to ensure your account is secure.
Ensure this is done in time since verification codes have a specific timeline that expires afterward.
- Uploading your Identification Documents– This is the final part of the registration process, where you will be required to upload the front and back sides of your national ID or passport. You will also be required to upload a selfie to confirm that you are the authentic person who has created an account.
A point to note: If you are buying a small value of cryptocurrency, this may not be necessary. However, it depends on the exchange platform you are dealing with.
- Starting to Transact
When you have completed the sign-up process, you are at liberty to start trading with the cryptocurrency of interest. For this to be effective, here is what one needs to do.
- Link your Payment Method– Linking your payment method enables you to buy the cryptocurrency of your choice. Some exchange platforms can take up to 5 days to link the method, for instance, a bank account.
If using a credit card, be careful about transactional fees. As you wait for the linking to be complete, research the fees and how exchange platforms work and are informed before the onset of buying the cryptocurrency.
- Placing an Order– Once you successfully link, you can place an order for your interested cryptocurrency. Remember that cryptocurrencies are highly volatile, more so for the first transactions. As such, only buy what you can afford to loosen until you get experienced in the world of cryptocurrency.
- Process Time– As mentioned, processing time varies on the exchange platform one is using, but it does not take place immediately. Some take up to a week. In case you wish to invest or hold, it is recommended that you move it offline as you wait for it to appreciate.
We trust this article is informative. Ensure that you source suitable exchanges if you want your cryptocurrency to remain safe.