How to Buy Cryptocurrency
The process of buying and selling cryptocurrency has been made a lot simpler over the last few months. There are five important factors that you must think about before buying cryptocurrency:
Location
To find out how and where you can buy cryptocurrency, it is important for you check your country’s regulations.
Payment Method
The most common and accepted payment methods to buy cryptocurrency include: credit card, bank transfer or even cash. Different websites accept different payment methods, so you’ll need to choose a website that accepts the payment method you want to use.
Type of Cryptocurrency
Not all cryptocurrencies are available for purchase on every website. You will have to find a website that sells the cryptocurrency that you want to buy.
Cost of Fees
Each website has different fees. Some are cheap, some are not so cheap. Make sure you know how much the fees cost before setting up an account on any website. You don’t want to waste your time verifying yourself and then find out the fees are too high!
How much you can afford
As with any investment, you should never invest more than you can afford. I recommend speaking to a financial adviser first.
With those 5 factors in mind, we can move on. When you buy your cryptocurrency, though, where are you going to store it? I’ll give you a hint: it’s not your bank account.
Cryptocurrency Wallet
A cryptocurrency wallet is where you store your cryptocurrencies after you have bought them. You can compare a cryptocurrency wallet with your bank account. In the same way that you store traditional currencies (USD, JPY, EUR etc.) in your bank account, you will store your cryptocurrencies in your crypto wallet.
There are a lot of easy-to-use and safe options to choose from. It is important that you choose a highly-secure wallet, because if your cryptocurrency gets stolen from your wallet, you can never get it back.
There are three types of wallets:
Online wallets: The quickest to set up (but also the least safe)
Software wallets: An app you download (safer than an online wallet)
Hardware wallets: A portable device you plug into your computer via USB (the safest option)
The wallet you need will depend on which cryptocurrency you want to buy. If you buy Bitcoin, for example, you’ll need a wallet that can store Bitcoin. If you buy Litecoin, you’ll need a wallet that can store Litecoin.
Luckily, there are a lot of good wallets to choose from that can store multiple cryptocurrencies.
As for hardware wallets, I recommend Ledger Nano S. It is very safe (because it’s only connected to the internet when it is plugged into your computer) and costs around $116. The Ledger Nano S stores Bitcoin, Ethereum, Bitcoin Cash,. Litecoin and many more!
Now that you know where you’re going to store your cryptocurrency, the next step is to find out which is the best place to buy a cryptocurrency and how to pay for it.
How do I buy and sell cryptocurrency?
Broker exchanges are like the currency exchange shops that you find at airports. However, instead of exchanging different local currencies with each other (such as YEN to USD), you can exchange your local currency for cryptocurrencies. It’s the simplest way to buy cryptocurrency — it can even be done from your cell phone!
How to Sell Cryptocurrency
Make sure you’ve selected to sell, rather than buy Bitcoin, and input the amount you want to trade. From there, you can place a “sell order” to sell at the current market rate, or alternatively, place a “limit” order, which will only sell when the price is at a figure you’re happy with.
