Ways to Buy Cryptocurrency
If you’re new to cryptocurrency, it’s completely understandable that you’d want to know the easiest way to buy it. While the process might appear daunting at first, it’s actually not too difficult. In fact, there are various options based on your level of technological prowess.
In this guide, we’ll go over the easiest ways to buy cryptocurrencies like Bitcoin, and other digital assets as well.
Cryptocurrency Exchanges
Without question, a trading platform like Crypto Exchange is the easiest way to buy these coveted digital assets. As you may know, a cryptocurrency exchange is a platform that allows you to, well, exchange your fiat for cryptocurrencies.
Exchanges are quite simple to work with. All you need to do is create an account and link a bank account, debit/credit card, or PayPal for payments. Some platforms ask you to reveal your identity, of course, to prevent money laundering and other bad actions.
Finally, you should set up two-factor authentication for maximum account security. Otherwise, you’re exposing yourself to unnecessary risk. From there, you can start purchasing cryptocurrencies as you wish.
Know that when considering an exchange, there are a few factors to keep an eye on:
l Transaction fees – most transactions made on an exchange come with an additional fee. This is how the exchanges pay for themselves, after all.
l Listed cryptocurrencies – every exchange has a different set of cryptocurrencies it supports. However, not all digital assets are worth investing in. Do some research on exchanges to make sure they have the assets you’re interested in.
l Verification times – some exchanges take longer than others to verify your account. You can’t make any transactions until then, so ensure your platform of choice has a short verification time.
l Wallet security – Look at user reviews of various exchanges, as well as the platform’s encryption methods. See if users have any issues with theft, hacks, or other security problems.
l Customer support – This is another aspect you can examine in user reviews. If you’re having an issue with a cryptocurrency exchange, you definitely want a solid customer support team to assist you.
How to Store Cryptocurrency
Now that you know where to buy cryptocurrency, it’s important to understand how to store it.
As you may know, purchasing cryptocurrency doesn’t result in the assets moving into your possession. You’re actually buying a private key that represents access to those digital assets. These private keys are stored in a cryptocurrency wallet.
There are different types of wallets you can use, based on the level of security you’d like. The first type we’ll discuss is a web wallet. Web wallets are those generally hosted by a cryptocurrency exchange. As these wallets are connected to the internet at all times, they’re easily accessible, which is great for day traders.
Then there’s the hardware wallet, which is a USB device that stores your cryptocurrency offline on a USB stick. If you don’t want your assets exposed to the internet at all times, this is the wallet for you.
Desktop wallets are the third type, which allows users to store their assets on a downloaded wallet on their machine. Whenever the app is closed, those cryptocurrencies are protected from the internet. However, they can be exposed whenever the application is open. This is the ideal wallet for frequent traders who want a little extra security.
You can also store your assets in a mobile wallet. This is similar to a desktop wallet, only on your mobile device instead. These wallets are also connected to the web at most times. That, and if you lose your phone, you’ve lost your wallet. It’s vital to keep your device on you at all times, as not to lose access to your cryptos.
Finally, there’s a paper wallet. This wallet is a piece of paper with a QR code on it. Scanning this code is the only way to access that cryptocurrency. If you’re looking to holding your assets for years, a paper wallet is a way to go.
