How Do I Buy Crypto? A Beginner’s Guide

The fallen kings of crypto
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Newcomers in crypto often find it challenging to understand how to buy any cryptocurrency. However, if investors are mindful of the potential risks involved, the process can become quite straightforward. To begin, investors can follow a set of five uncomplicated steps.

When it comes to cryptocurrency investing, there are diverse approaches, including directly acquiring cryptocurrencies or investing in crypto funds and companies. If you choose the direct route of investing in crypto coins, you can do so by utilizing a crypto exchange or specific broker-dealers, or you can explore the world of crypto OTC trading for larger transactions.

Explore further to understand the various ways you can invest in one of the most recent and innovative asset classes currently available.

1. Choose a Broker or Crypto Exchange

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges, like Coinbase and Gemini, serve as platforms where buyers and sellers meet to trade cryptocurrencies. While these exchanges may seem complex, they offer user-friendly options for beginners. Be aware, though, that the convenience of these options comes at a cost, with higher fees.

What is a Cryptocurrency Broker?

Brokers simplify the purchasing process, offering easier-to-use interfaces. However, some may charge higher fees or have restrictions on moving cryptocurrency holdings off the platform. It’s crucial to weigh the pros and cons before choosing.

2. Creating and Verifying an Account

Once you’ve selected a broker or exchange, the next step is to create an account. This process may involve verifying your identity by submitting documents like a driver’s license or passport. This step is crucial to prevent fraud and comply with anti-money-laundering regulations.

3. Deposit Cash to Invest

Before you can buy cryptocurrency, you need funds in your account. Deposit money by linking your bank account or using a debit/credit card. Be cautious with credit card deposits, as they can incur high charges. Depending on the platform, you may need to wait a few days before using the deposited funds.

4. Placing a Cryptocurrency Order

With funds in your account, you’re ready to place your first order. Choose from hundreds of cryptocurrencies, enter the ticker symbol (e.g., BTC for Bitcoin), and specify the quantity you want to purchase. Most platforms allow fractional shares, making it accessible for all budgets.

5. Select a Storage Method

After purchasing cryptocurrency, it’s crucial to decide where to store it securely. Cryptocurrency exchanges are not backed by financial protection schemes, so it’s wise to explore storage options:

  • Leave it on the exchange (less secure).
  • Use a hot wallet (convenient but riskier).
  • Opt for a cold wallet (most secure but requires careful management).

Additional Tips for Different Methods

Buying from a Centralized Crypto Exchange

If you choose this method, be aware that your purchased cryptocurrency initially stays with the exchange. To take full control, transfer it to a self-custodial wallet. Pay attention to withdrawal policies and fees.

Buying via Peer-to-Peer Trading Platform

These platforms connect buyers and sellers, offering privacy but potentially at a higher cost. Be cautious, as engaging in commercial sales on P2P platforms without proper licenses may have legal implications.

Exploring Cryptocurrency Investment Options

Investing in cryptocurrency goes beyond buying and holding. Consider these options:

  • Buy cryptocurrency directly.
  • Invest in cryptocurrency companies.
  • Invest in cryptocurrency-focused funds, such as ETFs or investment trusts.

Buying TRON (TRX) and Other Digital Assets

TRON is a decentralized digital entertainment and content-sharing platform that serves as a blockchain-based social media hub. It aims to connect content creators directly with consumers, eliminating unnecessary middlemen.

The platform introduces innovative features such as the SUN Network, which expands TRON’s capabilities by introducing smart contracts and side-chains for DApp development. Additionally, TRON’s native cryptocurrency, Tronix (TRX), powers transactions within the network and can be traded on various crypto exchanges.

To dive into the TRON network and buy TRON (TRX) effortlessly, head over to the instant crypto exchange ChangeHero. With the option to purchase TRX using your credit or debit card in USD or Euro, ChangeHero ensures a lightning-speed delivery of TRX to your wallet, empowering you to take control of your content seamlessly.

How to Buy Cryptocurrency from an Exchange

If direct investment is your goal, use a reputable cryptocurrency exchange:

  1. Choose a well-known exchange.
  2. Establish an account and verify your identity.
  3. Fund your account with fiat money.
  4. Decide on the cryptocurrency to buy.
  5. Place a buy order and store your cryptocurrency in a digital wallet.

About the author

Jike Eric

Jike Eric has completed his degree program in Chemical Engineering. Jike covers Business and Tech news on Insider Paper.

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