So, you’re interested in purchasing cryptocurrencies, but you don’t know where to start? Don’t fret, you’re not alone. In the past year, the NFT market has risen by leaps and bounds, making it increasingly difficult to traverse the crypto world, much alone locate a decent starting point.
A crypto exchange serves as ground zero for the vast majority of individuals who are new to crypto or NFTs. An exchange is a platform for exchanging dollars and cents for blockchain currency.
A major advantage of exchanges is that you do not need to be an expert on blockchain technology to buy cryptocurrency. Nonetheless, there are several sorts of services and businesses competing for your business.
In this article, we will cut through the complexity and guide you through buying your first cryptocurrency.
Determine where you want to buy cryptocurrency
As previously said, when it comes to purchasing crypto, you must first determine the sort of platform or service you would like to use. Crypto exchanges (there are controlled and decentralized exchanges) and crypto brokerages are the two most frequent platforms.
Simply put, an exchange is a cryptocurrency marketplace where users buy coins such as Ether, Bitcoin, and Dogecoin. They operate similarly to traditional stock markets and brokerage firms, with the exception that customers trade cryptocurrencies rather than stocks.
A crypto brokerage, on the other hand, facilitates the buying and selling of cryptocurrencies by acting as a middleman between a user and the cryptocurrency markets. Consequently, consumers do not engage in transactions based on current market pricing. Instead, the broker determines the price.
In this guide, we’ll be focusing on crypto exchanges, which are unquestionably the most popular trading technique for crypto and NFT newcomers.
Set up an account
You’ll need to create an account once you’ve selected a platform, such as CEX.IO or your preference. The majority of the time, exchangers will want you to submit personal information such as a photo of your passport or driver’s license in addition to setting up and verifying your account by email, phone, etc.
You might not be able to make any purchases on the platform until you finish the verification procedure, notwithstanding the intrusive nature of this. Furthermore, if you do intend to later deposit money back into your bank account, following these instructions will make the cash-out procedure simpler. Notably, you may occasionally avoid providing personal information with a decentralized exchange if you don’t want to.
Fund your account
Cryptocurrency has a price, of course. To buy crypto, you’ll need to use the traditional currency. There are several methods for funding your account.
Connecting it to your bank account is the most popular way to add money to your account. Making deposits and withdrawals as easy as possible requires linking your bank account. Don’t be fooled—verifying your bank account might be time-consuming at first, but it will ultimately make buying cryptocurrency a lot simpler. Instead of making a deposit on the exchange itself, you will also be able to purchase and sell directly through your account.
Depending on the platform you use, the procedure for adding your bank account will change. However, depending on the platform you’re using, you may typically find the option to link your bank account under the wallet, deposit, or bank account area.
If this isn’t your strong suit, you may alternatively fill your account using a wire transfer or by using a debit or credit card to make a purchase. Though many major card issuers view it as a cash advance rather than a genuine transaction, be sure to confirm how your bank handles credit-card crypto purchases. Additional interest and fines may occur from this.
Make a purchase
It’s time to buy some cryptocurrency now that you’ve financed your account or linked your bank account.
Now is the time to make your first crypto order. An order is exactly what it sounds like: you create a ticket with the amount you want to spend on it and submit it to be filled out. When you submit an order to buy, let’s say, 0.1 ETH ($145), the order will be filled at the best price currently on the market.
Fees for the majority of exchanges range from 0.5% to 5%, depending on the kind of transaction that is being undertaken. Buy costs should be low because you’ll almost always be buying fractions of a coin at a time. Check the fee schedule of any site you plan to use twice before making a purchase since cashing out might be expensive.
See also: How to Market your Cryptocurrency
Choose a place to store it
There is obviously more to the process after purchasing crypto.
You have a broad range of options for purchasing, exchanging, and storing cryptocurrency now that your exchange account is operational. Yes, if you plan to trade frequently, keeping your money in your exchange account is good. However, you should take into account the two most popular methods of storing cryptocurrency: in a software (hot) or hardware (cold) wallet, for increased security.
A hot wallet is a type of cryptocurrency wallet that maintains its data online and can be used with and operated on computers, tablets, and smartphones. A cryptocurrency wallet that isn’t online is known as a “cold wallet.” Since information is maintained offline, they are less suitable for everyday trading but safer for keeping crypto and NFTs. We strongly recommend the CEX.IO wallet for storing your crypto.
It is worth noting that the process of selling crypto is almost the same as the process of buying. You need to own a certain cryptocurrency in your account and select the sell option instead of the buy option, that’s it.
You are now prepared to buy your first cryptocurrency. When you first start out, keep in mind that one step at a time will help you gain confidence in your ability to purchase and sell.Last Updated on October 24, 2023 by Nansel Nanzip Bongdap
Nansel is a serial entrepreneur and financial expert with 7+ years as a business analyst. He has a liking for marketing which he regards as an important part of business success.
He lives in Plateau State, Nigeria with his wife, Joyce, and daughter, Anael.