Where to Purchase Crypto
Figuring out which broker or exchange you ultimately sign-up with is very important, as there are likely going to be fees associated with all of your trades. Some of these websites have juicy sign-up bonuses as well where you can get your hands on free crypto, and those are certainly worth checking out.
There’s a massive difference between a crypto broker and an exchange, with exchanges being the more popular option for “regular folk” such as you and me. Exchanges often sport low fees with easily accessible data charts, as well as a variety of ways to invest (which can seem daunting for some newcomers).
The most popular exchanges around right now would be the likes of Coinbase, Crypto.com, and Gemini. These are three platforms that allow essentially anyone on the planet to invest in cryptocurrency, but there’s something to keep in mind – it’s easy to purchase crypto, but the fees and pricing you’re getting aren’t always optimal.
It’s easy to use, of course, but you’ll be spending a little bit extra as a result. It’s always best to learn more about trading crypto before you start using real money on exchanges, as it will help you avoid losing out due to fees and other foreseen problems.
It’s important to take note of the “fiat > crypto” conversion process that takes place on your exchange – some of them will be easier to convert USD into crypto (and vice versa) than others. Some exchanges only allow trading crypto for crypto, but the larger ones (like Coinbase) have managed to implement an easy-to-use fiat purchasing process.
When you don’t want to worry about all of the intricate details associated with trading, brokers are going to be your new best friend. They have interfaces that are easy to read and interact with, giving newcomers access to all of the cryptos they could want without any fluff involved.
Sometimes brokers will offer higher fees than the exchanges themselves, while others are “free” (when in reality they make money by selling your trading information or executing your trades when the market price isn’t at its peak).
They’re convenient for a reason, but there are times where they prevent users from moving their crypto holdings off of the platform – the perfect example would be Robinhood or SoFi, two brokers that don’t allow people to transfer crypto holdings out of their accounts.
It may not seem like a massive deal at first, especially if you’re a newcomer. Unfortunately, the more you learn about crypto, the easier it is to realize that there are better ways to handle crypto investments.
What Are “Wallets”?
Wallets are what investors use to store their cryptocurrency, especially when they don’t want to leave it on an exchange or broker’s platform. You can find both digital and physical wallets for cryptocurrency; physical wallets are the peak of security, all of which aren’t connected to the internet (meaning they can never be hacked).
Creating an Account Online
Step 1. Figure out where you want to hold your crypto investments (let’s use Coinbase for this example)
Step 2. Sign up for Coinbase and confirm your e-mail (as well as your identity)
Step 3. Connect your bank account or an alternative form of payment accepted by Coinbase (they accept PayPal, Credit Cards, and Bank Transfers)
Step 4. Figure out if the cryptocurrency you’re looking to purchase is available on Coinbase – it’s one of the largest exchanges in the world, but it doesn’t offer everything!
Step 5. Deposit your cash and purchase some crypto!
How Much Money Should I Invest at First?
I’m not a financial guru by any means, and there’s no telling where the cryptocurrency landscape will take us next. The market is up +558% this past year, which means you more than likely would have made 5x your initial investment if you were buying crypto in October of 2020.
We don’t have a crystal ball by any means, but it does seem like crypto is here to stay for the long run – the good news is that there will always be a new one on the prowl, ready to grow just like the ones before it did!
All in All, Buying Crypto is Easy
That’s right, it’s no longer a daunting process that feels reserved for big-brain investors. Now average folk can purchase crypto and diversify their portfolio, as opposed to just praying the stocks available for trade at their bank will do them justice.