The role of cryptocurrencies in the modern world is getting more significant each day. Therefore, it is not surprising that even people who have never dealt with crypto are gradually becoming interested in this asset. In this regard, the question of how to buy crypto has become particularly important.
To answer this question, it is necessary to consider it from a comprehensive point of view. It involves at least three sub-questions: how to choose crypto to buy, where to buy crypto, and how to conduct a crypto purchase. Let’s figure these things out.
Contents
How to Choose Crypto
Before purchasing crypto, you should first define exactly why you need it. Today, cryptocurrencies perform various functions. Different coins may suit different purposes. For example:
- You can use cryptocurrencies as an investment asset. In this case, you should pay attention to coins with high growth potential. These can be popular giants like Bitcoin, Ethereum, and Litecoin or coins that are currently worth little but may increase in price in the future, such as Dogecoin. The main criterion you should follow when choosing crypto for investment is volatility, which can lead to a significant increase in the coin’s price in the future.
- You can use cryptocurrencies as a payment and saving instrument. Although all cryptos were originally created as currencies to pay for goods and services in the digital realm, some of them are much better suited for this function. If you need crypto to make payments on the Internet or store your money digitally, you may consider stablecoins. The value of these coins is linked to the exchange rate of the fiat currencies with which they are paired and is backed up by real-world reserves. USDT, USDC, BUSD, and other stablecoins are suitable options for digital payments and savings.
Where to Buy Crypto
Today, buying crypto is much easier than it was a few years ago, when this type of asset was still gaining popularity. Any person living in a state where cryptocurrencies are not prohibited by law can freely purchase them on one of the many exchanges available to the public. You can choose one of several types of exchanges:
- Centralized exchanges. These platforms are key players in the crypto market. They not only provide users with access to crypto operations but also control compliance by all parties. Centralized exchanges include both large, well-established players, like Binance or Coinbase, and new platforms, such as XBO.com. While the former offer customers a greater choice of cryptos, the latter often provide better terms and a higher level of protection due to the ability to focus more attention on individual transactions.
- Decentralized exchanges. These platforms are focused on peer-to-peer transactions, minimizing the intervention of third parties in crypto operations. They may also offer users lower commissions and fees. At the same time, decentralized exchanges are more suitable for advanced crypto enthusiasts because they require additional expertise to deal with them.
- Universal exchanges. These platforms do not focus exclusively on crypto but offer users a wide selection of assets, including stocks, indices, fiat currencies, and more. If you’re looking to have a diversified portfolio, you may want to consider these resources.
How to Conduct a Crypto Purchase
Once you decide which crypto you want to buy and choose a platform, the next steps are rather simple. You should register and pass verification. Next, you need to find the page corresponding to buying crypto in the platform’s menu and make a transaction. You can pay for your crypto coins in one of two ways:
- With fiat. To do this, simply deposit the appropriate amount of fiat to your account on the platform using a convenient top-up method (via credit card, payment terminal, bank transfer, etc.) and use these funds to buy crypto.
- With crypto. People who already have crypto can use it to buy other coins. Some exchanges perform this operation in as little as a few seconds by simply converting one crypto to another.
Once you purchase crypto, it will be credited to your account on the platform through which you made the purchase. Subsequently, you can choose whether to continue to store your coins in this on-platform wallet or transfer them to an external account. If you choose the former option, you can transfer your coins to one of two types of wallets:
- Hot wallets. These are online services that allow you to store your crypto in a secure environment.
- Cold wallets. These are physical devices similar to flash drives, on which your coins are stored as password-protected files.
The Takeaway
With all the opportunities and services available to modern people, buying crypto has become an easy task. The process itself is as simple as it gets: all you need to do is decide what coin to buy and purchase it through a safe exchange. Later, you can use this crypto as an investment asset, as a means of payment, or in any other way you intend to.
Be that as it may, buying crypto is an easy part. What matters most is that you make the decision to become a cryptocurrency holder and begin your journey.You’ll figure out the other things along the way.