A guide to buying cryptocurrency

Although investing in a digital asset may seem like a complicated process, it’s easier than you think. Before joining the ever-growing world of crypto, you should know how and where to buy the digital coins you want. Additionally, you need to know exactly where to store your coins so you can successfully invest in cryptocurrency.

Investing in these types of assets can be profitable in the long run, so know all the basics first to make the most out of your investments. Find out all the things that you need to know here at BTC Post!

How to buy cryptocurrency

Buying crypto nowadays has become easier than ever, especially with Bitcoin and other altcoin’s performance in the market. To guide you in starting your own crypto investment, here are the steps you need to follow:

1. Find a trusted platform

The first thing you need to have is a credible and reliable platform where you can buy your coins hassle-free. There are now various ways for you to purchase cryptocurrency, each with their own benefits that can fit your needs. Here are the platforms where you can buy, sell or trade cryptocurrencies:

Broker sites

If you want to buy a cryptocurrency instantly, then broker sites are a great place to start. Compared to other platforms, broker sites have online brokers assisting you in every step of the way—making it suitable for beginners. The most recommended broker sites in the market today include TD Ameritrade, TradeStation, and Charles Schwab.

Exchange sites

Exchange sites are where more advanced traders usually buy, trade or sell their digital assets. Although this is a great platform to buy cryptocurrency, it’s not recommended for beginners since it can be quite overwhelming due to the broad range of financial services these sites offer. The top crypto exchange sites in the market today include Binance, Coinbase Pro and Kraken.

Peer-to-peer marketplace

The peer-to-peer marketplace is where buyers and sellers can exchange assets directly without any intermediary. On this platform, sellers can provide products or services that meet your needs in the conditions you both agree on.

However, it is important that you do your research properly so you can determine great deals from overcharged ones. For peer-to-peer marketplaces, sites like LocalCoinSwap, Paxful and LocalBitcoins are some of the most recommended in the market today.

2. Order digital assets

If you’ve already chosen where you want to purchase a digital asset, then simply create an account and follow the site’s terms and conditions to complete your transaction. Keep in mind that most of them require a Know Your Customer (KYC) protocol where you’ll need to provide identification before you can sell, buy or trade digital assets.

3. Transfer your funds

Once you have successfully purchased a cryptocurrency, make sure to transfer and store them in a secured wallet.

How to store cryptocurrency

Once you are ready to buy your own digital asset, it’s time to know the different types of wallets you can use to store your coins. Here are the following wallets you can use:

Hardware wallet

Also known as a cold wallet, this is one of the most traditional and secured ways to store your cryptocurrency. It can either be in the form of a hard drive or USB-type device that stores your funds offline and can be connected directly to your tablet or computer. If you are not comfortable with storing your coins online, then this wallet is ideal for you.

Software wallet

Also known as a hot wallet, this is a type of software that you can access easily online. What’s great about this is that it allows you to access your funds anytime and anywhere as long as you have an internet connection, which is ideal for active traders.

However, while it is handy for trading, hot wallets are susceptible to online threats such as malware and hackers. This is why it’s important to only store funds that you will be trading or using within a short period in this type of wallet.

Paper wallet

Paper wallets usually include keys and QR codes that are printed on a piece of paper. Moreover, if there are any deposits that you need to make, you can directly download a specific code to create new addresses offline.

Desktop wallet

As the name suggests, desktop wallets are installed on your desktop. This wallet is a great option for those who frequently conduct crypto transactions from their laptops or PCs. Although desktop wallets are convenient and accessible, it is also vulnerable to hackers and malware. For this reason, you should install an antivirus and other security softwares for extra precaution.

Mobile wallets

Due to its convenience, mobile wallets are popular nowadays, especially for day-to-day crypto transactions. Handy and accessible, you can now pay with crypto instead of with paper money or physical cards in the stores that have this payment option with just a click. To get this type of wallet, all you need to do is install it on your phone and verify your identity. Some of the best mobile wallets when it comes to crypto include Binance and Mycelium.

Keep your crypto investments safe

The privacy and security of their coins is one of the most common concerns of crypto investors. Although the blockchain cannot be hacked, anyone who gains a user’s private key can access their funds and authorize transactions. This is why private keys should always be kept confidential.

Additionally, if you wish to invest in cryptocurrency for the long-term, the safest place to store your crypto is in a cold wallet where it’s far from online threats. With this, you can guarantee that no transactions or transfers of your funds will occur without your consent.

Start investing in cryptocurrency now!

Now that you have an idea on how to purchase digital assets and the different types of crypto wallets where you can store them, you can start investing in cryptocurrency with no worries!

Always keep up to date with the latest news and events in crypto here at BTC Post.