In this article, we will tell you how to buy cryptocurrency. There are quite a few ways; they differ in conditions, degree of benefit, and speed. This article will analyze how to choose a cryptocurrency, what is required for purchase, and where and how to purchase an asset.
What cryptocurrency to buy?
The number of cryptocurrencies is in the thousands and is constantly growing. Picking one is not easy. Before buying, answer a couple of questions:
What is your goal? If you plan to invest in cryptocurrency and store it, choose an asset with a steady upward trend. If you want to get into trading, a more volatile currency is suitable, which will allow you to capitalize on fluctuations.
How much are you willing to spend? If you are going to spend a significant amount of money on cryptocurrency, it would be wiser to diversify your investments: buy a stable asset for investment and a more volatile one for trading.
Beginners should invest in proven and popular assets: Bitcoin, Ethereum, Ripple, and Tether. Note that with a long-term upward trend, these currencies fluctuate quite a lot in the short term. Track the fluctuations in the asset rates you are interested in and study the factors that affect the quotes long before the purchase. Previously, we have already reviewed promising cryptocurrencies, but the market is mobile, and new assets and elements of price changes are constantly appearing on it.
How to Prepare for Buying Cryptocurrency?
Choose a cryptocurrency.
Set up a crypto wallet. It can be offline (cold, without Internet access) or online (hot, suitable for cryptocurrency transactions here and now). A wallet is needed for storing cryptocurrency and transactions with it. Some services allow you to create a multi-currency wallet, but they often make a separate wallet for each type of coin.
The crypto wallet will have two keys: a public one, which is used for transfers by analogy with a bank account or card number, and a private one, known only to the owner and giving access to funds.
Choose a site to buy. It can be a cryptocurrency exchange, a P2P platform, or an exchanger. We discussed each type of site in the article “Where to buy bitcoin?”.
Register on the site and, if necessary, pass verification.
How to buy cryptocurrency on the exchange?
Cryptocurrency exchanges are online platforms for conducting transactions with digital assets. People come here not only to buy or sell coins but also to make money on rate fluctuations. Exchanges are highly volatile, so before buying, study the changes in the exchange rate of the currency of interest. The most popular exchanges in the Russian Federation and the CIS are Binance, EXMO, Coinbase, Huobi, and others.
When trading on the stock exchange, be prepared to go through verification: confirm your phone number and mail, and also provide an identity document. Some sites do not require proof but provide limited functionality and low limits for unverified users.
The spot market is the easiest and fastest option to buy cryptocurrency on the exchange. You look at the current price in the order book and create a so-called buy order on the exchange website. The preferred price and number of coins are indicated there. The exchange automatically finds a seller that meets your conditions and closes the deal.
Exchanges charge a commission for depositing and withdrawing funds: usually around 0.1-0.2%. Its size depends on the volume of trading and the conditions of a particular site.
You can read more about buying cryptocurrency on the exchange in this article.
P2P – buying cryptocurrency directly from other market participants
Peer-to-peer or p2p trading is characterized by lower liquidity and slower buying speed. But intermediaries are not involved here – you directly buy cryptocurrency from another user. You can find offers to sell cryptocurrencies on forums, chats, or social networks. However, it is much safer to make purchases through P2P exchanges. They have tools that ensure the security of the transaction for the seller and the buyer: authentication, escrow services, and so on. When choosing a P2P exchange, just like a regular exchange, read customer reviews and sеlect large businesses with good protection and reputation.
Among the largest p2p sites today: are Binance P2P, OKEx, Cryptolocator, Bitzlato, Paxful, Money, LocalCryptos, and others.
P2P platforms also charge a fee, but you can buy a cryptocurrency for rubles on them. In addition, the seller can offer payment terms up to the meeting with the transfer of money in cash.
The scheme for buying digital currency on a peer-to-peer platform is as follows.
The seller of the cryptocurrency places an offer to sell assets, indicating the cost and preferred method of payment,
The coins offered for purchase are transferred to the account of the site,
The buyer accepts the offer and transfers the money,
The seller confirms their receipt; the cryptocurrency is sent to the buyer’s wallet.
How to buy cryptocurrency in an exchanger?
Online exchangers are the easiest and most reliable way to buy cryptocurrency. They do not require multi-stage verification; the interface of such sites is intuitive. Unlike exchanges or P2P platforms, here, you purchase currency not from other market players but directly from the exchanger.
The advantages of this way of buying:
speed – usually, the operation takes several minutes,
reliability – large exchangers value their reputation and will not appropriate your money,
Various payment methods – cards, electronic wallets, Internet banking, etc.
There are also disadvantages.
The exchange rate is slightly different from the exchange rate. Track fluctuations on the stock exchange to understand what the difference will be.
As a rule, popular cryptocurrencies are available for purchase. If you are interested in a new or rare coin, you must look for it on the exchange.
To make everything go smoothly, choose an exchanger with a good reputation and a high percentage of positive reviews. So, the Mine has been operating for six years, processing thousands of exchange requests daily. The exchanger cooperates with many banks and payment systems, so you can conveniently buy cryptocurrency.
The scheme for buying cryptocurrency in an exchanger is simple:
sеlect the payment method and the cryptocurrency you are interested in.
Fill out the application for the exchange: amount, payment details, contact details, and crypto wallet number. The system will automatically calculate how many coins you will receive.
Enter the captcha and submit the request.
Pay for the application and get coins in your wallet.
Summary
Before buying, sеlect a specific digital currency and study it: see how the exchange rate changes and what affects it. Beginners are more likely to invest in coins like bitcoin, Ethereum, etc.
Decide on a platform: it can be a cryptocurrency exchange, a P2P platform, or an online exchanger.
Study the working conditions of the selected site, the size of commissions, read reviews and ensure the quality of technical support.
