How to Buy Bitcoin and Other Cryptocurrencies: A Guide for New Crypto Investors
Categories: Bitcoin US
Once you’ve learned the lingo, accepted the risk, and met your other financial priorities, the next step to crypto investing is actually buying in.There are thousands of different cryptocurrencies, but experts say you should take a hard pass on most of them. Crypto values fluctuate by the hour, and this can be especially true for lesser-known coins. Much more settled digital forms of money like Ethereum and Bitcoin experience their portion of unpredictability, yet basically have a more noteworthy record of expanding in esteem after some time.
The process for buying Ethereum — or any other altcoin — is the same as the process for buying Bitcoin, but we will use Bitcoin as an example throughout as it’s the most valuable and most widely-held crypto on the market right now.
Here are the moves toward begin as a new crypto financial backer:
1. Choose an Exchange
Bitcoin can’t be purchased through your bank or investing firm yet — though some organizations are working toward that possibility in the future. For now, you’ll have to go through a cryptocurrency trading platform to exchange your U.S. dollars for Bitcoin or other digital currencies.
Security
Cryptographic money ventures are not maintained by a central foundation like FDIC-protected records. If your record is compromised, or the stage where you keep your coins is hacked, you could be at risk for losing your endeavor.
Expenses
Exchange charges can move remarkably, and may be applied as a level cost straightforward or as a level of your trades. Costs can be established on cost flightiness, and many are charged per trade.
Available coins
Not all exchanges offer every single cryptocurrency out there. Popular coins like Bitcoin (BTC) and Ethereum (ETH) are available on most crypto exchanges, while more niche altcoins may only be available on certain exchanges.
2. Fund Your Account
Contingent upon the trade you pick, you might have to give data like your Government backed retirement number, ID, and your type of revenue when you make your account.With most trades, you'll have the option to interface your ledger or a charge card to move U.S. dollars into your trade account. There might be various charges relying upon which technique you use to support your record — normally, bank moves will cost not as much as card choices.
3. Place an Order
Once you’ve connected a payment method, you’ll be able to actually place your order for Bitcoin. This process can differ depending on the exchange you use.If you use an exchange designed for more active trading — such as Coinbase Pro — you may have the option to place both market and limit orders.A limit order means you’ll set a price you want to pay for the cryptocurrency. Once the currency reaches that point it will automatically be purchased.
4. Practice Safe Storage
Many exchanges allow you to leave your investment within your account, which is easiest for most beginners. But if you want to further secure your digital assets, you can transfer them into a cryptocurrency wallet.