Buying Cryptocurrency: A Beginner’s How To

By |2018-11-07T00:01:43+00:0007 November 2018|

While cryptocurrency can’t be found on the shelves of your local grocery store and there might not be a Bitcoin exchange shop setting up in downtown, buying cryptocurrency is relatively easy. With only two easy steps, you can be the proud owner of cryptocurrency. First you have to set up a digital wallet to house your new crypto coins followed by deciding where you want to purchase your tokens from (options usually include exchanges or a peer to peer).

 

Digital Wallets

Your cryptocurrency wallet will serve as a secure holding place for all of the crypto you choose to buy. There’s dozens of options for wallets, so be sure to research which wallets work best for your needs. For example, some crypto coin’s official sites offer their own wallets to use. However, if you’re looking to diversify your crypto holdings, you might look into a general digital wallet. Digital wallets can also take the form of a desktop app, mobile app, or even physical hardware. Hardware wallets resemble flash drives or other adapters you might have for your computer; these can be purchased online. Wallets available for download can be found on websites for desktop or the App Store for mobile. Again, determining your needs and researching which wallets meet those needs is the best way to make your choice.

Your digital wallet has a unique identifying number which offers security and anonymity. When you purchase cryptocurrency, the holding address is transferred to your wallet’s address. Once your wallet’s address matches the holding address of the cryptocurrency, the ownership will be transferred to you.

 

Where to Buy

There’s two popular options when it comes to buying cryptocurrency. Crypto is bought either through exchanges or through communities who sell peer to peer. You can assume buying through exchanges is the safest way to purchase crypto, just be sure to use legitimate sites. Ones like Coinbase are popular, especially among beginners. Widely used exchange sites ensure safety when it comes to spending your money and the transactions are relatively quick.

However, exchange sites aren’t the only place to get your cryptocurrency fix. There’s thousands of online communities revolving around cryptocurrency and many people in these groups buy and sell crypto from others in the groups. For example, you might join a Facebook group of people interested in the new cryptocurrency, X Coin. Someone in the group posts to advertise they’d like to sell 15 X Coins. You could then buy those coins from that person directly. Benefits of buying from another person is that you won’t have to register for an exchange site and you might be able to buy in larger quantities for cheaper. Be wary when purchasing directly from another person. Many people sell their crypto when it’s in a downfall. Some people are just looking to scam others; especially beginners. Try asking for references from previous sales. If you don’t feel comfortable with the transaction, don’t do it. And as always, if it sounds too good to be true, it probably is.

 

All in all, buying cryptocurrency is relatively easy. Set up your digital wallet and decide between exchange sites or online communities. Always take caution in the buying process, but using trusted sources is the best way to ensure you don’t get burned.