Buying cryptocurrencies securely involves four basic steps:
1. Choose a Broker or Crypto Exchange
To buy cryptocurrency, first you need to pick a broker or crypto exchange. There are many ways to buy cryptocurrency safely, though the most accessible method for beginners is likely to be a centralized exchange. Centralized exchanges act as a third party overseeing transactions to give customers confidence that they are getting what they pay for. These exchanges typically sell crypto at market rates, and they make money on fees for various aspects of their services.
For more advanced users, there are decentralized exchanges whose fees can be lower than those charged by centralized platforms. Those can be more difficult to use and demand more technical know-how, but they may also offer some security benefits because there is no single target for a cyberattack. Cryptocurrencies can also be traded through peer-to-peer transactions.
2. Create and Verify Your Account
This is an essential step to prevent fraud and meet federal regulatory requirements. Once you decide on a cryptocurrency broker or exchange, you have to verify your identity. You may not be able to buy or sell cryptocurrency until you complete the verification process.
3. Add value to your account
While there are thousands of cryptocurrencies being traded around the world, you’ll find that the most popular options are widely available for purchase in fiat currencies such as the U.S. dollar. If you’re a first-time buyer, you’ll very likely have to use regular money to buy cryptocurrency.
To buy crypto, you’ll need to make sure you have funds in your account. You might deposit money into your crypto account by linking your bank account, authorizing a wire transfer or even making a payment with a debit or credit card. Depending on the exchange or broker and your funding method, you may have to wait a few days before you can use the money you deposit to buy cryptocurrency.
If you already own cryptocurrency, you can transfer it into your account from a digital wallet or another platform, then use it to trade. Just be sure to verify that your crypto exchange allows trading between the assets you’re looking at. Not all cryptocurrencies can be directly traded for one another, and some platforms have more trading pairs than others.
Another thing to note is that exchanges’ fees vary depending on what you’re buying and how you’re buying it, so review these details carefully.
4. Select a cryptocurrency
Once there is money in your account, you are ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB), Cardana (ADA), Dogecoin (DOGE), XRP (XRP), and other cryptocurrencies.
