If you have been following the news lately, you must know why Cryptocurrency and Bitcoin, in particular, are getting so much talked about. There was a time when Cryptocurrency was frowned upon. But in today’s world, even the best of people want to know how to buy Cryptocurrency.
The reason why people are so eager to know this is because of Elon Musk and Tesla’s association with Bitcoins. Last month Elon Musk made an announcement that took the world by storm. Elon Musk, the CEO and co-founder of Tesla and SpaceX, announced that they had invested a whopping 1.5 Billion USD on Bitcoins.
And also that they have made plans to accept Bitcoin, the most popular Cryptocurrency, as a form of payment in the foreseeable future. All this made the price of Bitcoins skyrocket and reached an all-time high of $50K. So without any further delay, let us see how to buy Cryptocurrency in 2021. This article is going to serve you as a Step by step guide to buying Cryptocurrency.
How To Buy Cryptocurrency 101
There are a few things you need to keep in mind and a few things you need to have before buying Cryptocurrency. You might think it is a tough process, but actually, it is very simple. You need to have
- A stable Internet Connection
- An accepted payment gateway
- Your KYC documents
After making sure that you have these things with you, establish a personal wallet. Accepted payment methods include VISA and Mastercard debit and credit cards. Now follow these steps to buy a cryptocurrency
Select An Exchange
The first step for buying any sort of Cryptocurrency is to select an exchange. Make sure that you have done your prior research before selecting a crypto exchange because these days, many crypto exchanges are fake.
Exchange is the only place from where you can buy a Cryptocurrency from so I would suggest you search about the exchanges on google and see the reviews. Select the exchange only if the reviews and ratings are positive; if the reviews and ratings are negative, choose another one.
There are plenty of exchanges to choose from, though. Some exchanges even allow the users to remain anonymous. These types of exchanges mainly come in handy for those who are refugees or those who are living in countries that do not have proper banking facilities.
All in all, the most important thing to keep in mind while choosing an exchange is to make sure that your exchange allows instant withdrawal so that you can quilt withdraw your cryptocurrencies after purchasing them.
Synchronize Your Exchange With Your Selected Mode Of Payment
After you have selected your payment gateway, it is important to connect it with the exchange you have chosen.
While connecting, your exchange might ask you for a couple of identification documents like a driver’s license and your social security number, and even proof of your source of income. This process is quite similar to that of setting up a brokerage account.
Once the exchange has verified your identity, you will be allowed to sync your payment method with your exchange; after doing that, you can start purchasing Cryptocurrency. I would not suggest you use a credit card since Cryptocurrencies are very volatile.
Do note that even though Bitcoin is legal in the United States, banks do not let users make deposits related to crypto exchanges and sites. The fees of making crypto deposits can vary from bank to bank; usually, it is 1.49% of the amount you transact in most banks. This is one of the most important things to know while learning How To buy Cryptocurrency.
Now, this is where you learn How To buy Cryptocurrency. After you are done with the above steps, now it is time for you to actually place an order of Cryptocurrency.
You can buy a single Cryptocurrency, or you can buy them in bulk. Even a few years back, Cryptocurrencies were considered to be a scam, but now, since it is widely accepted by the public, the exchanges also have started providing flexibility. You have become way more accessible and provide liquidity options.
To be frank, Crypto exchanges have become so mainstream that they have almost become like stock brokerage exchanges. You are going to find all the investment options and buying options that you are going to see in a stock brokerage exchange.
It also allows set up recurring investment. For example, it will automatically deduct a certain amount of money from your wallet to invest in Cryptocurrencies.
Selecting A Storage
Storage is a place where you are safely going to store your Cryptocurrency. You should have a specifically dedicated crypto wallet to ensure that you have full control over your crypto funds; it is a very important factor to keep in mind while learning how to buy Cryptocurrency.
Having a personal wallet is also beneficial since it allows you to store your funds away from the exchange to minimize the risk of hacking and other fraudulent activities. There are mainly two kinds of wallets.
- Hot Wallets – Hot wallets are online wallets. Hot wallets can only be used when your device is connected to the Internet. Hot Wallets are very easy to use, but they are always at a risk of getting hacked.
- Cold Wallets – Offline Wallets are called cold wallets. Cold wallets can be used even when your device is not connected to the Internet. Cold Wallets are a bit complicated to use, but the risks of hacking and other fraudulent activities are almost negligible.
Final Thoughts On How To Buy Cryptocurrency
There you go; I hope now you know all the steps required in learning How To buy Cryptocurrency. If you follow the above steps, I am sure you will be able to buy a cryptocurrency.
As each day passes, more people will want to know How To buy Cryptocurrency since the price of Bitcoin is breaking and making records. Cryptocurrency is soon going to be the next big thing on the planet.