Want to buy cryptocurrency but don’t know the procedure? You are not the only person who doesn’t know how to buy a cryptocurrency and use it. Read this post in full to know how to do so.
The new and innovative way of earning through investment is investing in cryptocurrency. Cryptocurrency is not a term that you have not heard in recent years. In recent years, cryptocurrency has gained the attraction of big investors by providing huge returns to them. A cryptocurrency is simply a digital currency that can be stored digitally. Like any other currency, crypto is not regulated by the central regulating authorities but actually uses the decentralized system for its regulations. Many new investors want to deal in crypto but find it difficult to do so because they do not know where and how to buy crypto. There might need some critical thinking before buying any cryptocurrency because when you proceed to buy one you need to think and examine so many things. These things will directly impact your earnings by crypto. So having prior knowledge about these terms is a must. Here are those important terms.
- Cryptocurrency Exchange
The term cryptocurrency exchange is very important and you must know before starting to proceed to buy crypto because without it you will not be able to buy the crypto. We all know that cryptocurrency has no centralized platform for its regulations, so cryptocurrency exchange is a platform where you can buy cryptocurrencies and sell the cryptocurrencies. It is a trading platform for cryptocurrency where buyer-seller meets like a simple trading market.
- Cryptocurrency Broker
Just like any other broker, a cryptocurrency broker is a financial intermediate, who in basic can be either a firm or a person. The benefit of having a cryptocurrency broker is that you will be guided to the best investment ways.
- Types of Cryptocurrency
Not just bitcoin but there are many more cryptocurrencies you can invest in.
- Binance coin
- USD Coin
Here these are the most of them but if you google you will some more.
- Hot Wallet
Hot wallets are types of crypto storage wallets to store your cryptocurrency online and that run on internet-connected devices.
- Cold Wallet
Cold wallets are other cryptocurrency storage wallets where your crypto is stored offline. These wallets are considered safe in comparison to hot wallets.
Steps to Buying Cryptocurrency
Let’s move ahead and discuss the steps that are involved to buy a cryptocurrency.
- Find a Crypto Exchange or Broker
The very first step you need to do is find or select a crypto exchange or a crypto broker. Here, your choosing the one will ultimately gonna affect your earnings. A cryptocurrency exchange provides you the platform to trade cryptocurrency but the complexities might become the topic of concern if you are new to cryptocurrency. Coinbase is the most suitable cryptocurrency exchange for newcomers and is well known. On the other hand, the cryptocurrency brokers ease the complexities of purchasing crypto by providing you with an easy-to-use interface. The Robinhood is a well-known broker for the said purpose.
- Make an Account
The next step after picking the one option from the above step is to create an account. Having an account is a necessity to buy crypto in order to prevent fraud and to fulfill federal regulatory requirements. Till your account is created and verified you can’t do any trade in the crypto market.
- For investment make sure you have enough Cash in account
Without the exact amount of cash, you cannot buy cryptocurrency. Buying a cryptocurrency depends on the policy of the broker or exchange firm you opted to go with. You can buy cryptocurrency by two methods, either by linking your bank account and using debit /credit cards or purchasing crypto for crypto. The second option is only suitable when you already have some cryptocurrency with you.
- Place order to buy
When you are done doing all three steps, the next step is to place your order, and for doing that you need to decide first which cryptocurrency you want to purchase. We already discussed the types of cryptocurrency available and you can choose any of them. The well-known cryptocurrencies are Bitcoin, Tether, and Ethereum in the present time. And you can easily find exchange and brokers of these currencies.
- Storage options
Go for a storage option that provides you with the safety of your cryptocurrency. We already discussed the two types of wallets available where you can store your cryptocurrencies. If you daily trade in cryptocurrency then Hot wallets are a good option for you as internet access is required. But if you don’t wish to trade on a daily basis then cold wallets are a good option for you.
Here are a few questions related to cryptocurrency that needed to be answered.
A. The answer to this question is a No. According to reports, there is no verification of the fact that Apple is planning to invest in cryptocurrency. And the same answer goes for Does apple have a cryptocurrency.
A. Not directly but, amazon accepts crypto in an indirect way. You can use BitPay or just buy gift cards from Amazon by using crypto.
A. Yes, apple stores do accept payments made in Bitcoin, Monero, and many other cryptocurrencies.