Cryptocurrency

How to Buy Crypto – 5 Steps Guide

Are you confused about the crypto selection or do you want to buy crypto but are not able to decide which one is best? If yes, then this article is specifically for you…

Let’s have a look at crypto is a digital currency used to perform transactions without sticking to the central authority. In the market, there are various kinds of crypto like Bitcoin, Ethereum, Dogecoin, SafeMoon, and many others. This is your choice, like which crypto you want to buy, but wait a minute this choice doesn’t come directly into your mind, if you are making a choice then you must have strong research behind it.

To buy crypto firstly we have a better understanding of the crypto, secondly, the purpose to buy, and the third is duration like for how long you want to invest.

One thing you should have to keep in mind is that investing in crypto doesn’t mean earning a profit every time, most of the time you bear a high risk.

Five key Steps to Buy Crypto

5 steps to buy crypto choose a crypto exchange, set up your account, deposit cash to buy crypto, place the order, and select the storage method.

Step 1: Choose a Crypto Exchange

It is just like a broker through which you can exchange your assets. An online market where you can trade cryptocurrencies. There are two types of crypto exchanges; you can select one of them by keeping your requirements in your mind; centralized and the decentralized exchange. Let’s have a broader view of these two types one by one:

1: Centralized Exchanger

This type of exchange is owned by a central authority, they are high defenders of your data and provide the defense in depth strategy to ensure security. Here are some centralized exchangers:

  • Bitfinex
  • Coinbase
  • Gemini
  • GDAX
  • Huobi Global
  • Kraken

2: Decentralized Exchanger

It is opposite to a centralized exchanger, there is no central authority, every person is the owner and it works in a peer-to-peer network. Every node in this type of exchanger acts like a server. Here are some examples of decentralized exchanges:

  • 0x Protocol (Matcha)
  • PancakeSwap
  • Uniswap
  • Sushiswap
  • Curve
  • Venus

Step 2: Setup your Account

After deciding on an exchanger, it’s time for account creation and verification. Complete the verification step carefully without verifying you will not be able to open the account.

The verification thread sometimes demands further documents like CNIC or driving license. It prevents you from malicious attacks by hackers and provides defense in depth.

Step 3: Deposit Cash to Buy Crypto

Make sure you have enough funds to buy the crypto, by default, there will be no cash on your exchanger so first, you have to transfer cash from the bank.

Here I sincerely suggest you guys, instead of storing cash directly on your exchanger, use a trusted wallet as it gives you more security than an exchanger.

After transferring the cash your next step will be to buy crypto. The minimum amount required to buy crypto is $5 or $10

Step 4: Place the Order

Once you have enough cash, now you are ready to place your first order. There are hundreds of currencies you may select one of them that you want to buy.

Here is the list of a few currencies and their estimated buying cost:

BTC => Average rate (17217.98 USD) => Market value (331 077 549 381.00 USD) => Exchange (2.34%)

ETH => Average rate(1 282.18 USD) => Market rate(154 532 937 021.00 USD) => Exchange ( 4.38%)

USDT => Average rate(1.00 USD) => Market rate(65 733 754 405.00 USD) => Exchange ( -0.02%)

Step 5: Select a Storage Method

After purchasing, it’s time to securely store the cryptocurrencies, as we know it has no restrictions by centralized authorities like the government and banks, but still, data is at risk in case of key loss an unauthorized user can access your data. Here are the various shells to store the cryptocurrency.

  • Leave it on Exchange

By default, the currency is stored on an exchange typical wallet but if you are not satisfied with your exchange, in that case, you can transfer it to a cold or hot wallet.

  • Cold Wallet

Also called an offline wallet because it is not connected to the internet, we store crypto in USB and hard disk. Due to less connectivity of the internet, there is no chance of cyber-attack but on the other hand, data is still under threat, we may lose our data due to disk corruption or key loss, so we have to be careful.

  • Hot Wallet

Online wallets store the cryptocurrency and run it on internet-connected devices like mobile, laptops, tablets, and many other devices. In hot wallets, there is a high rate of cyber-attacks due to their online nature.

Conclusion

To buy crypto you need a crypto exchanger where buyers and sellers can sell, buy, and trade transactions. Five key steps to buying cryptocurrency are choosing a crypto exchange, setting up an account, depositing cash, placing an order, and finally storing the currency.

About the author

Talha