A Beginner's Guide For Buying Cryptocurrency

Digital currencies have become quite popular in recent years. Many individuals and investors are looking to buy into this asset class, but are not sure where to begin. In this blog, we’ll take you through some of the beginner-friendly methods to assist you in buying your first crypto.

Crypto Exchanges

These are online platforms where you can buy, sell or swap your cryptocurrencies. You’ll need to signup on these platforms using your e-mail or phone number and once your account has been activated, you can start by depositing funds using your bank card or wire transfer. Popular crypto exchanges include Binance, Coinbase, Kraken, KuCoin & Bybit.

Keep in mind that these crypto accounts are just like your social media accounts and are vulnerable to hacking and phishing. Make sure you set a unique password that you don’t use somewhere else and enable all the security options such as 2FA, Anti-Phishing code and Biometrics. In order to increase your transaction volume, you can consider completing KYC (Know Your Customer) Verification. This usually takes less than a minute and you can do so by scanning your government-issued documents such as ID, Driving License or Passport.

Peer-To-Peer (P2P) Marketplaces

These are platforms where you can buy crypto directly from a selling party. Through these platforms, buyer transfers fiat to the bank account of the selling party and then the selling party releases the assets once the payment is confirmed. To protect the funds of both parties and to eliminate frauds, these platforms also play the role of escrow. Popular P2P crypto marketplaces include LocalBitcoins, Paxful etc.

How does P2P transaction work?

Once the buyer places an order, the assets in the account of selling party are temporarily frozen and remain so until the completion of the trade. As soon as the seller confirms the receipt of payment, the assets are automatically transferred to the account of buyer. The assets are made frozen in case any conflict arises between both parties during the trade. In such cases, customer support of these platforms may step in and may request evidence from both parties to create a settlement.

Bitcoin ATMs

These are automated physical machines that allow you to buy crypto using cash or bank card. They work just like a normal ATM machine, but instead of dispensing cash, they deposit crypto directly to your crypto address. You can find such ATMs near you using Coin ATM Radar.

 

It is important to remember that the prices of cryptocurrencies are highly volatile. Conducting thorough research and understanding the risks and potential rewards can help you navigate the world of cryptocurrency with greater confidence.

Comments