How to Buy Cryptocurrency: Your Guide to Buying Crypto

How to Buy Cryptocurrency: A Guide to Buying Your First Crypto

Are you considering becoming a part of the crypto trading world and thinking about how to buy cryptocurrency and where to start? Then we have prepared a detailed guide designed for those who have just started their cryptocurrency journey and wish to know how to buy coin and start multiplying their funds.

1. Grasping the concept of cryptocurrencies Before we discuss how to buy cryptocurrency, we ought to start with the basics and answer a simple question: What is cryptocurrency?

Cryptocurrency is digital money, which uses cryptographic techniques for transactions, authenticity verification and the emergence of new units. Crypto operates on an independent basis and its trading has grown in popularity over the years. Virtual coins serve as an exchange medium, means of investment and value preservation.

2. Which cryptocurrency should I start investing in? The crypto market is constantly changing and since the launch of the first cryptocurrency – Bitcoin – over ten years ago, thousands of other currencies have flooded the market. The subject of investing in a particular cryptocurrency has to be studied with scrutiny to make an informed decision.

Bitcoin and Ethereum hold first and second place on the market and are still quite popular among traders. Bitcoin is the first cryptocurrency ever launched and its value has changed drastically over the years. Moreover, it is one of the currencies that stands very close to fiat money in terms of application.

Altcoins – all other currencies besides Bitcoin. Some can become profitable and join the market with great ambition, others may disappear with time. Beginners entering the trading market should be extremely cautious when investing in new currencies: one wrong move may lead to unpleasant consequences.

3. Choose how to buy cryptocurrency The simplest way how to buy cryptocurrency is through a crypto exchange or a broker. Crypto exchange: an online platform where users trade their digital assets directly yet with a set fee for each transaction. Cryptocurrency prices are influenced by supply and demand. Crypto exchange platforms provide a variety of possible trading pairs: transactions between fiat currencies like Bitcoin or dollars, or between various available cryptocurrencies.

Crypto broker: an intermediary, a company or a person, who handles the transaction between traders. In comparison to a crypto exchange, the broker determines the prices for the digital assets. Often crypto brokers tend to have higher transaction fees and do not offer as many trading pairs as crypto exchange platforms. However, they provide a user-friendly experience and remain popular among newcomers.

4. Create and verify a trading account Typically, the first step requires you to fill out a form with your details like name and email address. Later on, your account has to be verified to avoid fraud, and you will be asked to submit an official ID.

5. Deposit funds Before you start your crypto trading journey, the account must be funded either with fiat currency, or any type of cryptocurrency. Fiat deposits will require bank details and if you want to deposit crypto then a virtual wallet address should be generated. Some platforms may allow purchasing cryptocurrencies using PayPal, credit/debit cards or other payment methods.

6. Place an order: To buy or sell crypto, you have to ‘create a command’, or in other words, place an order. The list of basic order types includes:

Market Order: you place this order when you wish to buy or sell assets at the current price on the market; the market order is executed immediately for quicker transactions. Limit Order: in this case, you set a specific target price for which you are willing to buy or sell crypto. This type of order will be only executed when the market hits your set price. Stop Order: when placing this order, you trigger a buy/sell transaction once the price reaches a certain level.

There are various other advanced order types, but they exist beyond the scope of this beginner's guide.

After you have placed your order, you should wait for it to be executed. As mentioned before, a ‘market order’ is executed immediately, while a ‘limit order’ or ‘stop order’ is executed when the market reaches the targeted price.

7. Secure your digital assets Now when you know how to buy crypto, it is essential to manage and secure all your digital assets. This is achieved through using a crypto wallet, which comes in various types, each with certain pros and cons.

8. Withdraw or sell your crypto After you have successfully bought your first cryptocurrency, you have several options: you can store it on the exchange, withdraw it to the wallet or continue by selling it. If you choose the withdrawal option, make sure that you double-check the details and address, as crypto transactions cannot be cancelled.

If you are willing to sell your assets, first you should put them back on exchange and repeat the steps described above.

This guide is just a mere introduction to the topic of how to buy cryptocurrency, but it is a helpful tool for those who are willing to take risks and join the crypto world. Visit https://ellyx.com/ for more information and start the investment journey.