Do you want to jump into cryptocurrency? I don’t blame you! Crypto has exploded over the past few years. With over 17,000 different cryptocurrencies out there today, it can get pretty confusing trying to figure out how to invest in this digital money revolution.
Luckily, I’m here to walk you through the basics so you can get started buying cryptocurrency. Let’s get to it.
What is Cryptocurrency Anyway?
In simple terms, cryptocurrency is digital cash secured by encryption (coded locks). Bitcoin, created back in 2009, was the first decentralized cryptocurrency that caught on. The technology behind Bitcoin is called blockchain – basically a distributed ledger that permanently records transactions.
The crypto market has grown like crazy since Bitcoin showed up. There’s now a ton of options beyond just Bitcoin!
Why Should You Buy Cryptocurrency?
There are a few key reasons why you might want to buy some cryptocurrency:
- Many cryptos have increased a TON in value over the years.
- Cryptocurrencies are being accepted by more merchants and sites as payment.
- New ecosystems like decentralized finance and NFTs have popped up around crypto.
- Adding some crypto to your investment portfolio provides diversity outside just stocks and bonds. Crypto is risky but can have huge upside!
Ways to Buy Crypto:
There are two main avenues to get your hands on cryptocurrency:
- Centralized Exchanges – Platforms like Coinbase and Gemini make buying, selling, and holding crypto assets simple in one place. They handle storing the coins for you.
- Decentralized Exchanges – Also called DEXs, these platforms like Uniswap allow you to trade crypto directly with others, no central control. You keep custody of the coins yourself.
Check Out the Top 5 Centralized Exchanges
Here are 5 reputable and popular centralized crypto exchanges to check out:
Coinbase
The Coinbase is a website where One can buy and sell cryptocurrencies like Bitcoin and Ethereum. Cryptocurrencies are digital monies.
To use Coinbase, you first create an account by giving your email and choosing a password. After that, add a payment method like a bank account, debit card, or PayPal to invest in the crypto. This links money to your account. Now you are ready to buy crypto!
On Coinbase, you can see prices of coins like Bitcoin and buy any amount you want.
The coins are then stored in your Coinbase account. You can sell coins back to get dollars whenever you want. Your dollars and coins are kept safe by Coinbase.
Coinbase is good for beginners because it is simple to use. You can buy crypto instantly with a card. It also have an app for your phone. The website is secure and Coinbase protects your account. Millions of people use Coinbase to invest in cryptocurrencies.
Gemini:
Gemini is another website you can use to buy and sell cryptocurrencies. Twin brothers Cameron and Tyler Winklevoss started Gemini. Gemini bases itself in New York.
To start using Gemini, you sign up with your name, email, and password. Then you add a payment method like a bank account to deposit money. Now you can buy different cryptocurrencies like Bitcoin and Ethereum.
Gemini keeps your coins very safe in online storage. It uses complex security to protect your account and money. Gemini also lets you earn interest on certain coins! This means Gemini pays you just to keep coins with them.
The Gemini app makes it easy for you to buy and sell crypto right from your phone. You can also set up automatic purchases on a schedule. This lets you steadily invest over time.
Gemini is a good choice because New York fully regulates and licenses Gemini. This means Gemini follows important rules that protect your account.
Kraken:
Kraken is a website where you can buy and trade cryptocurrencies. It lets you trade many different coins like Bitcoin, Ethereum, and Litecoin. Kraken offers low trading fees and good security to protect your account. The website and app have charts and tools that advanced traders use.
Kraken is one of the largest crypto exchanges in the world. It operates in many countries. Kraken is good for buying coins at low cost and trading between cryptos.
One of the largest exchanges globally with staking and margin trading options. Low fees and great trading tools.
Crypto.com:
Get their CRO token and check out crypto debit cards, staking, loans, and more cool features. Strong security.
FTX:
Fast-growing exchange with all the bells & whistles – derivatives, options, lending, staking, margin trading. Popular with advanced traders.
Steps How You Can Buy cryptocurrency in 5 Easy Steps:
Just follow these steps to begin investing in cryptocurrency:
1. Pick an Exchange – Choose one of the exchanges above that best fits your needs as an investor.
2. Sign Up & Verify – You’ll provide personal details like your name, email, and proof of ID to register.
3. Deposit Funds – Add money to your account by bank transfer, wire, or debit card that you can use to buy crypto.
4. Make Your Purchases – Use your funds to buy Bitcoin, Ethereum, or any cryptocurrency you want. You can trade between cryptos.
5. Withdraw to a Wallet – For better security, withdraw coins to your own digital wallet instead of leaving them on an exchange long term.
A Few Tips to Invest in Crypto Like a Pro
Keep these tips in mind as you dive into the world of crypto investing:
- Only invest what you can afford to lose – Cryptocurrency is volatile! Only use discretionary funds to buy crypto.
- Dollar cost average buys – Making consistent smaller buys over time can get you better average prices.
- Know tax obligations – In the US, crypto is treated as property by the IRS and capital gains taxes apply.
- Use 2-factor authentication – Add an extra layer of security beyond your password to lock down your account.
- Secure coins in cold storage – For best security, use a hardware wallet like Ledger or Trezor to store your crypto assets offline.
Let’s Get Started Buying Crypto:
Buying cryptocurrency has never been easier thanks to trusted exchanges like Coinbase and Kraken. Now you’ve got the basics to start exploring the world of digital currencies in 2024! Do your research, take security seriously, and think long-term. With smart moves, you can succeed with crypto. Good luck!