Cryptocurrency is one of the top things to buy for many people today. If you’re not getting it for free via airdrop or mining, then you should mind buying.
Nigerian songstress, Ayra Starr said in her verse of the hit song ‘Overdose’ said ”Bitcoin dy my wallet like this ”. This has got some people to think about having crypto too.
If you are a beginner who is interested in buying crypto, this would be a guide for you to buy one effectively. Before then, let’s learn more about cryptocurrency.
What is Cryptocurrency?
A cryptocurrency is a form of virtual currency that is aimed at replacing traditional physical currency. It is an encrypted, decentralized currency that is not linked to or regulated by any government or authority.
Bitcoin is the first cryptocurrency created which has led to the creation of other crypto assets known as altcoins. They were originally developed to provide an alternative mode of payment for online transactions.
Cryptocurrencies are naturally very volatile which makes them very risky to invest in. This has made crypto one of the riskiest assets to buy today but can also make one an overnight millionaire.
How to Buy Your First Cryptocurrency
If you have decided to be involved in crypto for its several benefits which include quick transactions, fast payment, etc. then here is how to purchase one.
1. Choose a broker/Crypto Exchange
The first step to buying cryptocurrency is to choose a broker/exchange. This is very important as there are different guidelines for each platform. Some platforms require little or no fee for purchasing crypto while some charge high. Asides from fees, other things to consider include privacy and security.
A crypto exchange is a platform where buyers and sellers meet to trade cryptocurrencies. Exchanges differ in their fees and crypto assets available to buy. Some of the top exchanges today include Binance, Coinbase, Gemini, etc.
A crypto broker can also be a point for you to buy crypto assets. These platforms interact with exchanges for you to buy/sell crypto assets. Platforms like this charge very high when compared to exchanges. Some of the top crypto brokers today include Robinhood, SoFi, etc.
2. Create & Verify your Account
The next thing to do after choosing a place to buy your first crypto is to create and verify your account. It is very easy to sign up on some platforms while you need to do the KYC to buy/sell cryptos.
You might need to provide some documents for you to start any crypto-related activities on the platforms. Once you are verified, you can purchase the crypto of your choice.
3. Deposit Cash to Invest
To purchase crypto after being verified on your chosen platform, you’ll need to deposit fiat currency e.g. USD, GBP, NGN, etc.
You can fund your crypto account by linking your bank account. It can also be funded via a wire transfer, or even by making a payment with a debit or credit card. Using a debit or credit card to fund your account is however very risky.
4. Place your Crypto Order
Once you have successfully funded your account, you can then place your order on the crypto to buy. There are over 20,000 crypto coins to buy. Bitcoin, Ethereum, USDT, Solana, Dogecoin, and Litecoin, are a few of the top crypto assets today. Other small-cap altcoins that have attracted investors today include Tamadoge, Battle Infinity, Theta, etc.
If you are buying any of these cryptocurrencies, you will need to make use of their market symbol e.g. BTC for Bitcoin, USDT for Tether, BNB for Binance coin, and so on. The number of coins you are willing to buy on such an exchange or broker can then be selected.
5. Select a Storage Method
It is very important to store your crypto asset after purchasing because you could lose or forget the access code. With a storage method in place, you can rest assured that your hard earned money is secured.
There are various storage methods for your crypto investment. There are several options to store the crypto asset of your choice after purchase. You can store it on the crypto wallet attached to the exchange or platform you are using such as Prestmit.
Other options include using a hot or cold wallet. For the hot wallet, crypto assets are stored online and run on internet-connected devices, such as tablets, computers, or phones. In a cold wallet, crypto assets are stored in external devices, like a USB drive or a hard drive where there is no internet connection.
With this, you can safely be an owner of a crypto asset such as BTC, DOGE, LTC, etc. which you can hold, or decide to sell.
Closing Thoughts
Buying cryptocurrency can be effectively done when you follow the right procedure. You need to understand that choosing the right platform to buy as well as the crypto asset to buy is very important in doing this.
