How to Buy Cryptocurrency
Investing in Cryptocurrencies can seem complicated, but it is much easier when you break it down into steps. Buying Cryptocurrency is getting easier by the day, and the legitimacy of the exchanges and wallets are growing as well.
Before You Buy Cryptocurrency
There are several things that every aspiring Crypto investor needs. A cryptocurrency exchange account, (although are many to choose from we recommend Binance or Coinspot (for Australians)). Personal identification documents if you are using a Know Your Customer (KYC) platform, a secure connection to the Internet, and a method of payment. It is also a must, that you have your own offline cold wallet outside of the exchange account, this is where your Krypto Keepsafes® will come into practice..
Privacy and security are important issues for crypto investors. Anyone who gains the private key to a public address on the blockchain can authorize transactions. Private keys should be kept secret; criminals may attempt to steal them if they learn of large holdings. Be aware that anyone can see the balance of a public address that you use. That makes it a good idea to keep significant investments at public addresses that are not directly connected to ones that are used for transactions.
Step One: Choose an Exchange
Signing up for a cryptocurrency exchange will allow you to buy, sell, and hold cryptocurrency. It is generally best practice to use an exchange that allows its users to also withdrawal their crypto to their own personal cold wallet for safer keeping. For those looking to trade Bitcoin or other cryptocurrencies, this feature may not matter.
There are many types of cryptocurrency exchanges. Because the crypto’s ethos is about decentralization and individual sovereignty, some exchanges allow users to remain anonymous and do not require users to enter personal information.
Coinbase, Coinspot, Kraken, and Gemini offer Bitcoin and a growing number of altcoins. These three are probably the easiest on-ramps to crypto in the entire industry. Binance caters to a more advanced trader, offering more serious trading functionality and a better variety of altcoin choices.
Step Two: Connect Your Exchange to a Payment Option
After you have chosen an exchange, you will need to gather your personal documents. Depending on the exchange, these may include pictures of a driver’s license or Social Security number, as well as information about your employer and source of funds. The information you may need can depend on the region you live in and the laws within it. The process is largely the same as setting up a typical brokerage account.
After the exchange has ensured your identity and legitimacy, you will then be able to connect a payment option. At most exchanges, you can connect your bank account directly or you can connect a debit or credit card. Though you can use a credit card to purchase cryptocurrency.
Step Three: Place an Order
When you have chosen an exchange and connected a payment option, you can now buy Bitcoin and other cryptocurrencies. In recent years, cryptocurrency exchanges are rapidly becoming more mainstream. They have grown significantly in terms of liquidity features. The operational changes at cryptocurrency exchanges parallel the change in the perception of cryptocurrencies. An industry that was once thought of as a scam or one with questionable practices has now morphed into a legitimate one that has drawn interest from all the big players in the financial services industry.
Now, cryptocurrency exchanges have gotten to a point where they have more levels of features than their stock brokerage counterparts. When you have found an exchange and connected a payment method, you are ready to go.
Crypto exchanges today offer a number of order types and ways to invest. Almost all crypto exchanges offer both market and limit orders and some also offer stop-loss orders.
Step Four: Safe Storage
Bitcoin and cryptocurrency cold wallets are a place to store digital assets more securely. Having your crypto outside of the exchange and in your personal cold wallet ensures that only you have control over the private key to your funds. It also gives you the ability to store funds away from an exchange and avoid the risk of your exchange getting hacked and losing your funds.