The news of cryptocurrency is everywhere. Cryptocurrency is on-trend. And this trend will keep increasing with the passage of time. So the prices of cryptocurrencies are at an all-time high. Every day there are more people investing in cryptocurrency. Yet many people are learning how to invest in it. But before investing we have to understand how to buy cryptocurrency.
Keep on reading this article. By the end of this article you will completely understand: how do you buy cryptocurrency?
Table of Content
- Why buy cryptocurrency?
- Where can you buy cryptocurrency?
- How to buy cryptocurrency?
- How to buy cryptocurrency: Bitcoin
- How to buy cryptocurrency: Ethereum
- How to buy cryptocurrency with a credit card?
- Buy cryptocurrency with PayPal
- How to invest in cryptocurrency?
- Frequently asked questions
- Conclusion
Why buy cryptocurrency?
But first, we have to understand why buy cryptocurrency? The number one reason is that this currency is highly secure. This makes it loss-free. The next point is that its value increases over time. However, it is not set in stone that it will increase. Sometimes it decreases too. Lastly, it also removes the percentage of tax rates. As well as removes the need for a middle man. Hence it is fast, secure, and efficient.
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Where can you buy cryptocurrency?
Now you have to understand where you can buy cryptocurrency? This is a very important factor. The best sites to buy cryptocurrency are cryptocurrency exchanges. There are many exchanges where you can buy them. However, the most popular ones are Coinbase, Gemini, and Binance.
How to buy cryptocurrency?
There are many types of cryptocurrency. But the two most popular types are Bitcoin and Ethereum. In this article, we will cover how you can buy these two.
How to buy cryptocurrency: Bitcoin
Okay first let’s start with the most popular one, bitcoin.
Join an exchange
Above we have talked about how you have to join a cryptocurrency exchange. Basically, this exchange is the place where buyers and sellers meet. This is the first step in how to buy cryptocurrency. Popular exchanges include Coinbase, Gemini, and Binance. Note that you can buy any type of cryptocurrency from these exchanges.
Create your account
Once you find your favorite exchange. Next, you have to create your account on it and join it. This is a relatively simple step. It resembles making and creating your account on a social media app.
Deposit money into your account
After the successful creation of your account on an exchange. The next step is to add money to your exchange account. You will need this money to buy bitcoin. You don’t have to purchase a full bitcoin. That means you can purchase a percentage of bitcoin. For Example, you can buy 10 % or 50% of it.
Make a digital wallet
This is also a very important step. After buying a bitcoin you have to store it in a digital wallet. There are two types of digital wallets for storage. A cold wallet and a hot wallet. Hot wallets run over the internet. Whereas cold wallets do not run over the internet. That’s why cold wallets are the most secure. However hot wallets are easy to use.
How to buy cryptocurrency: Ethereum
Now it’s time to understand how you can buy the second most popular cryptocurrency.
Join an exchange
The process starts the same way as the buying of bitcoin. You have to join a cryptocurrency exchange. Besides bitcoin and Ethereum you can buy any type of cryptocurrency from these exchanges.
Account creation
Next, you have to create an account on your choice of cryptocurrency exchange.
Fund your account
After creating an account next you have to put money in your account. With this money, you will buy an Ethereum coin. Instead of buying a full Ethereum coin. Like bitcoin, you can also buy shares in an Ethereum coin.
Storage of Ethereum
Finally, you will need a digital wallet either a hot wallet or a cold wallet. So this wallet will store your Ethereum coin.
How to buy cryptocurrency with a credit card?
This is a very common question among potential cryptocurrency buyers. Can you buy cryptocurrency with a credit card? The answer is quite tricky. Although a cryptocurrency is purchasable with a credit card. But you can get blocked by your credit card company. Because most credit card companies disallow the purchase of cryptocurrencies.
Buy cryptocurrency with PayPal
Paypal is a very popular method for transactions. It is already very useful and convenient for buying goods and transferring money. Also, Paypal boasts a staggering 426 million users in numerous countries. Recently PayPal has integrated buying of cryptocurrency. Now you can easily buy cryptocurrency with PayPal.
How to invest in cryptocurrency?
Once you have purchased your first cryptocurrency. Now you can also do investments with cryptocurrency.
- You can wait and hold your cryptocurrency. Once it increases in value you can sell it.
- Also, you can invest in companies that are using cryptocurrencies. Moreover, you can also purchase stocks from these companies.
Frequently asked questions
- Do you have to be 18 to buy cryptocurrency?
No, you don’t have to be 18 to buy or mine cryptocurrency. However, platforms like Coinbase and others require you to be 18 for transactions.
- What can you buy with cryptocurrency?
With the passage of time, everything is becoming available to be bought by cryptocurrency. However, NFT is the most popular option to buy with cryptocurrency.
- What is the best cryptocurrency to buy right now?
The best cryptocurrencies that you can buy right now include
- Bitcoin
- Ethereum
- Solana
- Avalanche
- When is the best time to buy cryptocurrency?
The best time for buying cryptocurrency is Monday. After Monday, Sunday is said to be the best day. As the prices are lower in these two days. Whereas Friday is considered a bad time. Because the prices are higher on Friday.
Conclusion
In this article, we have explained in depth how you can buy cryptocurrency. Also, we have covered the two most popular investments in cryptocurrencies. As well as we have given the answers to the most frequently asked questions. So by reading this article you will be ready to buy your first cryptocurrency.
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