Prior to purchasing coins or tokens because somebody suggested it is a lucrative investment, you should conduct some research. For starters, bitcoin and ethereum are the two most popular crypto investments at the moment. Do not be intimidated – investing in cryptocurrency is simpler than ever. As prices have been rising, crypto is an exhilarating venture. But when you are just beginning, the acquisition process can be perplexing, and you may be not sure how to commence.
A major roadblock that prevents individuals from investing in cryptocurrencies is the lack of knowledge on where to begin. In a survey conducted by Bakkt, 24% of the participants stated that their main difficulty was not having any idea on where to start. Even if a person only wants to purchase Bitcoin or invest in various digital coins, it isn’t as daunting as it initially appears. Taking a few steps, you can securely make your first crypto acquisition.
1. Get informed about the different ways you can purchase cryptocurrency
When it comes to buying crypto, there are many platforms to pick from. The three most popular ones are crypto exchanges, stock brokers, and payment apps. To establish which one is right for you, it is important to get as much information as possible about them. Crypto exchanges are solely dedicated to purchasing, selling, and exchanging digital currencies. This type of platform has the most currency diversity and is equipped with advanced features. If you intend to regularly invest in crypto, then an exchange would be the optimal selection.
Although getting used to exchanges may take some time, there are several of the top platforms that are user-friendly and offer lots of teaching material. If you are a novice to cryptocurrency, these three are some of the best choices:
Binance
Coinbase
Gemini
In recent years, some stockbrokers have begun to diversify their offerings to include cryptocurrencies. Robinhood is a well-known example of this. Although these brokers do not usually provide as many options as you would find on a crypto exchange, their selection of crypto assets is usually smaller, and you may not be allowed to move crypto off the brokerage. Despite this, it can still be a convenient way to add crypto to your investment portfolio, especially if you are already dealing with a broker who offers crypto.
Crypto can be acquired through two common electronic payment platforms, Venmo and PayPal. These services provide minimal features and don’t allow for users to move their crypto away from the app. In spite of the negative aspects, some customers enjoy the swiftness and convenience of buying crypto on a payment app.
2. Create a profile on a cryptocurrency platform
Once you have determined where to acquire cryptocurrency, the subsequent phase is to select one that you prefer and create a profile. If you have already established an account with the stock broker or app, then all that is left to do is to enable the buying of cryptocurrency.
The way in which one needs to register for a crypto platform differs, but all of them demand comparable details. All cryptocurrency organisations doing business in America must get certain data about their customers to agree to the KYC (Know-Your-Customer) laws.
Prior to acquiring any digital currency, you must supply specific data:
Full name
Email address
Phone number
Physical address
Social Security number
Date of birth
On certain occasions, you may be obliged to demonstrate your identity with an authentic ID, a document that serves as confirmation of your address, and potentially even a photograph of yourself (selfie).
3. Begin your journey into the world of cryptocurrency by making your initial investment.
Once you have signed up for an account, you can start purchasing cryptocurrency. Select the kind of cryptocurrency you want and the quantity, then pick a payment mode. Depending on the place you want to buy from, the payment options may differ. On most cryptocurrency exchanges, you can pay with debit cards and credit cards.
Prior to selecting a payment method, assess the accepted payment options and their corresponding charges. You can trim the cost of crypto trading fees by choosing the most economical payment method. Generally speaking, bank transfers typically have the lowest costs to acquire crypto. Conversely, credit cards are almost never a wise choice. Between additional trading fees and cash advance fees, your cost to acquire crypto with a credit card could be as much as 7% more.
All in all, here is the process from start to finish for acquiring cryptocurrency:
1. Examine the various methods of purchasing cryptocurrencies and choose the one that is most suitable for you. Cryptocurrency exchanges are a widely-used choice, and there are also stockbrokers that offer trading in digital coins.
2. Establish a profile on the system you selected. Be ready to validate your identity.
3. Select the cryptocurrency you desire and complete the purchase. Opting for a bank transfer is generally the most cost-effective way to pay and will enable you to access the lowest rates.