So, you have made up your mind about investing in cryptocurrency. But you don’t know how to buy a cryptocurrency and are thoroughly confused about how and where to start from. With hundreds of options available, it can be quite daunting for anybody to choose their pick. Moreover, like any asset, there are a lot of things that need to be kept in mind before you buy cryptocurrency. But you need not worry, we have got you covered. In this blog, we will be discussing some of the easiest ways to buy cryptocurrency.
How to Buy Cryptocurrency
The last few months have witnessed a substantial simplification of the process of sale and purchase of cryptocurrencies. There are five key factors that you need to keep in mind before you purchase a cryptocurrency.
You can buy cryptocurrency as long as your country’s regulations support the sale and purchase of cryptocurrencies. Therefore, your location is a crucial factor in the process. There are a few countries that don’t support crypto transactions. Others like India have recently seen the nullification of the RBI’s banking ban on cryptocurrencies, which has paved the way to buy cryptocurrency in India after RBI ban.
Some of the most commonly accepted payment methods include credit card, bank transfer (wherever legalized), and even cash. Most platforms will allow you to buy Bitcoins with a credit card, but others might not. So, you will obviously have to go for a website that supports your payment method. If you’re thinking about how to buy cryptocurrency in India, the method is the same for India too.
Some cryptocurrencies aren’t available on all platforms. So, you will have to find the platform that sells the cryptocurrency that you seek to purchase.
Different websites have different fees. While a few will let you buy cryptocurrencies for a small fee, others might charge a lot more. Make sure that you know the platform charges for purchasing a cryptocurrency before you set up your account on it.
Invest What You’re Ready to Lose
That’s the golden rule for any kind of investment. Put in an amount that you can afford to lose.
Now that you know these five factors that play a role in the sale and purchase of cryptocurrencies, let’s move on. After you have bought your cryptocurrency, where will you store it? Nope, it isn’t your bank account.
If you are planning to buy cryptocurrency, you must know about cryptocurrency wallet; that is where you store your cryptocurrencies. In that sense, you can compare crypto wallets with your bank account, where you store all your funds. You can buy and store a cryptocurrency in your crypto wallet in the same way as you store fiat currencies in your bank account.
While there are plenty of easy-to-use options that you can choose from, it is crucial that you go for a highly secure wallet. It is because if someone steals your cryptocurrencies from your crypto wallet, there is nothing you can do to retrieve it. You can go for any of these three kinds of cryptocurrency wallets.
Online wallets: While an online wallet is the easiest and quickest to set up, it is also the least safe to use.
Software wallets: A software wallet is comparatively safer than an online wallet and is basically an application that you would need to download.
Hardware wallets: A hardware wallet is the safest bet as far as the security of your cryptocurrencies is concerned. It is essentially a portable device that you will need to plug into your computer.
The choice of your wallet will depend upon the cryptocurrency that you choose to purchase. For example, if you want to buy Bitcoin, you will have to go for a wallet that lets you store Bitcoin. Similarly, if you choose to buy Ethereum, a wallet that can store Ethereum will be your inevitable choice.
Fortunately, nowadays, there are several crypto wallets out there that can store multiple cryptocurrencies. So whether you buy Bitcoin or purchase Litecoin, these wallets will allow you to store your digital assets. Exodus is the best example of such a software wallet that will let you store Bitcoin, Ethereum, EOS, Litecoin, and much more.
How and Where to Buy Cryptocurrency?
If you want to buy cryptocurrency, you will obviously need to have an idea about where to look for these digital assets. Until a couple of years ago, there weren’t too many places where you could purchase cryptocurrencies. But these days, there is no shortage of platforms from where you can buy cryptocurrency.
What’s a Cryptocurrency Exchange?
Crypto exchanges are online platforms that allow you to exchange your fiat currency for cryptocurrencies. These exchanges are the most sought out places for buying cryptocurrencies. If you are a rookie in the world of crypto investment, I’d strongly recommend you to use these crypto exchanges as they offer the easiest way to buy cryptocurrency.
Most cryptocurrency exchanges will accept payments through bank transfers. You can use your credit card to buy cryptocurrency. Also, some of these platforms accept PayPal as the payment medium. Choose whichever medium you are okay with to attain your objective.
Crypto exchanges have different levels of security and also the payment medium varies from one exchange to another. You will have to follow a set of guidelines before you buy cryptocurrency from an Exchange. By following these guidelines mentioned below, you will be able to buy cryptocurrency in India, as well as, abroad.
- You will first need to provide all the necessary details like your name, contact details, etc.
- Your identity verification comes in next for which you will generally need to provide details of your passport or driving license.
- Then you will be required to provide a 2-step verification, which would secure your account and keep the hackers at bay.
It is important to note that almost all cryptocurrency exchanges will charge you anywhere from 1-4% as the transaction fee. Once your account is up and running, you can buy whichever cryptocurrency you want.
Broker exchanges are places where you can exchange your fiat currencies for cryptocurrencies. Thus, they are quite similar to currency exchange shops that you see at airports. A broker exchange is the best way to get Bitcoin and other cryptocurrencies. In fact, it’s the simplest way to buy cryptocurrency because you can purchase cryptocurrencies even through your phone. Cryptocurrency broker exchanges like Coinbase and Coinmama are some of the most sought out and preferred crypto exchanges where you can buy cryptocurrencies of your choice.
How to Buy Bitcoin from an ATM
Do you know that like the usual ATMs that we see around us, Bitcoin ATMs are now operational too? Well, Bitcoin ATMs are quickly gaining traction although it is a very new idea. Just like you use regular cash ATMs to withdraw fiat currencies like USD or EURs, you can use a bitcoin atm to buy Bitcoin. The only difference is that instead of withdrawing cash, you will have to deposit cash in a Bitcoin ATM to buy Bitcoin. If you want to buy Bitcoin fast and easy, Bitcoin ATM is your best bet. However, on the downside, a Bitcoin ATM isn’t available everywhere because it is a very new idea. It is perhaps the easiest way to buy cryptocurrency because it will need no registration, creating an account or transferring money. All you have to do is go to a Bitcoin ATM, deposit the cash, and you will get the Bitcoins in your account the cash value that you have deposited.
While some Bitcoin ATMs will need you to verify your identity, most ATMs would let you proceed without any verification. Also, you will have to enter your phone number if the ATM asks for it. You will receive a transaction code as a text message, which you will have to enter into the ATM. Enter your cryptocurrency wallet address if you have one. The ATM will create a wallet for you if you don’t have a wallet. Once you have deposited the cash into the ATM, you will receive the Bitcoin into your cryptocurrency wallet. Don’t forget to collect the printed receipt. Your wallet details will be on the receipt if the Bitcoin ATM has created your wallet for you. Always keep your wallet details safe and secure.
You can buy a cryptocurrency at a Bitcoin ATM easily and quickly. But they will charge a high transaction fee, which is anywhere around 5-10%. Also, there aren’t too many Bitcoin ATMs around, so, that’s obviously a downside.
So, which is the best place to buy cryptocurrency?
We have analyzed three mediums to buy cryptocurrency. If you were to ask me, Bitcoin ATM is the easiest way to buy cryptocurrency. But then, most of us don’t have Bitcoin ATMs around us. If we were to draw a comparison between a cryptocurrency exchange and a broker exchange, I’d always go for a broker exchange. It is because of the comparatively higher security and less transactional fees that broker exchanges provide. However, it is only an opinion, and you are free to decide for yourself. Just take all the necessary precautions before you buy cryptocurrency or else you might end up losing your funds too.