How do I buy cryptocurrencies?
- Crypto In A Nutshell
- Nov 1, 2020
- 3 min read
You decided to invest in cryptocurrency. However, you are confused and do not know where to start - you are wondering, how to buy cryptocurrency? With so many options available, it can be difficult to choose the one that's best for you. Also, there are many things you need to think about before you start investing.
This is the ultimate guide on how to buy cryptocurrency like Bitcoin, Ethereum, and other cryptocurrency for beginners.
So, let's get started!
How to Buy Cryptocurrency?
Step 1: Research
Decide which coin to buy
The good places to start: CoinMarketCap.com, CoinGecko.com
There are many types of cryptocurrencies, each of which has both strengths and weaknesses. To decide which coin to buy to get the highest interest, you should analyze them can be based on its purpose, team, liquidity, price volatility, and other metrics.
You can consult the following actical to investigate the characteristics of each coin. https://cryptomaniaks.com/best-cryptocurrencies-to-buy
Actually, diversification is key. There is not only one best cryptocurrency to buy. Lots of cryptocurrencies have many different use cases and promise to disrupt different industries. Investing in cryptocurrencies is risky, but investing in only one cryptocurrency is riskier. So, make sure to diversify your crypto portfolio.
Diversification is a great way to hedge your risks and increase your chances of getting into the next compelling cryptocurrency.
Payment Methods
Most of the exchanges accept payment by Credit card, Bank transfer, some of them also accept PayPal. They all have their pros and cons. Bank transfers are slower compared to other methods; credit cards have high transaction fees, Paypal has transaction limits, and cash does not get the best exchange rates.
Different websites accept different payment methods, so you'll need to choose a website that accepts the payment method you want to use.
Cost of Fees
Each website has a different fee. Some are cheap, some are not that cheap. Make sure you know how much it costs before setting up an account on any website. You don't want to waste time verifying yourself and then discover that the fees are too high!
Step 2: Get a wallet
There are three types of wallets:
Online wallets: The quickest to set up (but also the least safe);
Software wallets: An app you download (safer than an online wallet);
Hardware wallets: A portable device you plug into your computer via USB (the safest option).
The wallet you need will depend on which cryptocurrency you want to buy. If you buy Bitcoin, for example, you'll need a wallet that can store Bitcoin. If you buy Litecoin, you'll need a wallet that can store Litecoin.
Luckily, there are a lot of good wallets to choose from that can store multiple cryptocurrencies. Exodus, for example, is a software wallet that can store Bitcoin, Ethereum, Litecoin, Dash, EOS and more!
They are top 5 BITCOIN trading platforms that you can explore more in Vietnam and in the world.
Top reputable Bitcoin trading platforms in Vietnam
1 / Remitano trading platform
2 / Bitcoin santienao trading platform
Top reputable Bitcoin trading platforms in the world
1 / CEX Bitcoin trading platform
2 / Bitfinex Bitcoin trading platform
3 / Coinbase Bitcoin trading platform
Step 3: Buy your coins at Cryptocurrency Exchanges?
The first step is to register yourself with your information (full name, email address and cell phone number, etc.);
The next step is to verify your identity — you normally need a passport/driving license;
Next, you are asked to set up 2-Step Verification. This helps to keep your account secure and keep the hackers away!
Note: Almost all exchanges charge a transaction fee of around 1-4%.
When your account is set up, you can start buying cryptocurrency on the exchange.
Most exchanges are just like stock-trading platforms: you can buy and hold your cryptocurrency, or you can exchange it for another cryptocurrency.
REFERENCES
Coin Tien Ao. (2017). Dau Tu Thong Minh. 5 san giao dich tien ao hang dau tai Viet Nam va tren The Gioi. Retrieved from (https://daututhongminh.com/5-san-giao-dich-tien-ao-hang-dau-tai-viet-nam-va-tren-gioi)
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