How To Buy Cryptocurrency Safely Online

Cryptocurrency

The rise in value of cryptocurrency has had many people interested in purchasing them. However, if one is purchasing for the first time the whole experience can be quite confusing given the increase in the number of digital coins. This is because of questions like which is the best cryptocurrency to buy? Can I buy them safely?  How do I store them and even how can I sell them? Regardless of these questions, the process of buying cryptocurrency has been made safe and easy thanks to the advancement of security features and blockchain technology. This is a breakdown of how one can safely purchase cryptocurrency safely online.

  1. Understand the risks

Before investing in anything one needs to carry out research and understand the potential risks that come with the form of investment. In the case of cryptocurrency, the associated risks are that as a digital currency there is a high volatility. This means that prices can shift with no notice, especially with digital coins which are not popular. The other associated risk with cryptocurrency is that they are susceptible to hacking if not stored with a good exchange.

  1. Choose the right exchange

The fact that you cannot purchase cryptocurrency from a bank means that there are specific platforms where you can buy cryptocurrency.  The most important thing is to research the exchange to determine its credibility. The things to look for in an exchange or a broker are if they have ever been hacked before, have they been insured, how much are their fees and even how flexible they are.  Another factor to consider when choosing an exchange is to look for those that allow you to transfer your coins to your wallet. This allows you the flexibility of deciding how you would secure them. You will need to create an account and verify before you can make a purchase.

  1. Link your exchange to a payment option

Once you have found the right exchange and created your account the next step is to link your exchange with payment options for your purchase. Most exchanges will begin by verifying your identity. This will mean that you will need to show some form of identification. Once your identity is verified then there will be a payments option which you will have to link to facilitate payment. In most cases, you can link directly to your bank account or debit card where the money can be drawn automatically once you make the purchase or will be placed when you sell.

  1. Deposit funds

There are those exchanges and cryptocurrency brokers that allow you to make payments directly from a bank account or debit card. The best way is to deposit funds into your account then make a purchase. Depending on several factors the process of deposit may vary in time based on bank policy. An important point to note is that there are high charges when drawing funds from debit or credit cards. This is because most banks place a high-interest rate as they consider it as a cash advance. The best way is to do a much cheaper bank transfer.

  1. Place your order

Once you have the money intended to make the purchase the next step is to place your order for the amount of cryptocurrency you are looking to buy. You can decide which type of digital coin you are looking to buy with some of the popular ones being Bitcoin, Ethereum, Tether, Dogecoin among many others. Today it’s possible to buy a fraction of the cryptocurrency you are looking for due to the high value of the coin. There are active trading platforms that allow more customized features in your purchase. This means you can place a limit to minimize losses or the amount you want to purchase for and once it is reached the purchase is automatically done.

  1. Storage

Once your purchase is successful and you have coins in your account you need to decide how you will store it. Many exchanges let you leave your coins in your account but it’s much safer to transfer them to a cryptocurrency wallet for additional security. There are two types of wallets, there is a hot wallet, this is where you store your cryptocurrency in an online crypto wallet. Hot wallets offer convenience; the only challenge is that since they are connected to the internet they can be hacked. The second type of wallet is the cold wallet, this is a crypto wallet that is not connected to the internet and is the most secure way of storing your coins.

 Just like with any other kind of investment make sure you weigh your options and determine your financial goals and the kind of risk you are willing to take.