Crypto is gaining traction with each day that passes. While in 2009, there was just one cryptocurrency and a few early investors, these days, the crypto market gathers thousands of crypto coins and tokens and over 400 million crypto enthusiasts.
So, if crypto became so popular, why is it that some still don’t buy it? Well, one of the primary causes might be the buying process and its massive differences from traditional finance.
And if you too want to hold crypto but do not know where to start, this article will help you discover how easy it is to make your first crypto purchase. And to have a better view, we will take the whole process step by step.
1. Choose the Cryptocurrency You Want to Invest in
As we mentioned before, there are thousands of cryptocurrencies available on the market. Some are surprisingly successful, and others are rather questionable. This is why the first thing you should do is carefully research the available crypto and choose a trustworthy coin or token that can increase its value in time.
There are some ways in which you can look for the best cryptocurrencies. First, you can perform your own research, as this might be the most helpful practice. If you don’t know where to start, you can look for a website that lists info about crypto, or you can even use a crypto search engine, as it will provide extensive information about the market.
When researching cryptocurrencies, try to keep an eye on their price evolution in the first place. Then, you can look for the latest updates and news about the crypto project, as such information can affect the token price. If you see too much bad news about the project, try to look for another one.
Also, you can go to the company’s website and read more about the project and the tokenomics of the specific crypto. Furthermore, always read the whitepaper, as it will offer you extensive information about how the token works.
2. Set up a Crypto Wallet
Crypto coins and tokens cannot just be put in a physical wallet or in a piggy bank. Crypto operates solely online, and to store it, you must set up a crypto wallet. At the moment, there are plenty of wallets available on the market, and to choose one, you have to consider some things.
There are multiple types of crypto wallets, and the most popular are hardware or software wallets. Hardware wallets are physical devices with public and private keys. They are able to store the addresses of the crypto you buy. An address contains various characters and is used for transactions. Such addresses are also stored on the blockchain. A hardware wallet is considered to be the safest crypto storage option at the moment because only you have access to it. The only way in which someone can steal digital assets from you is by actually stealing the wallet physically, and this is harder to achieve.
On the other hand, software wallets provide hot storage for crypto investors. Hot storage is the type of storage that is stored online. Basically, software wallets are websites or apps where users can log in and make various crypto transactions. They are also pretty safe, but considering that the assets are stored online, it is easier to steal them during a hack.
3. Choose a Crypto Exchange
You cannot buy crypto from a vending machine or withdraw it from an ATM. Actually, you can, at least in Bitcoin’s case, but we highly recommend not to. So, to purchase crypto, you will have to go on a crypto exchange. Crypto exchanges are specialized platforms that list various coins and tokens and allow users to buy, sell, swap, or trade the cryptocurrencies available. A crypto exchange can be a website, an app, or both.
To choose the right crypto exchange, you have to check some essential things:
- Check if the crypto exchange is available in your area – Due to various regulations, crypto is not available to all users. Some countries banned crypto completely. So, crypto exchanges have some limitations, too. Read more about the crypto exchange and try to find out if it operates in your area. Also, check if all the products and services are available. Some platforms might offer them all, whereas others can support only buying or selling crypto;
- Find out if the platform supports the cryptocurrency you chose – With the chosen crypto in mind, look for a list of the crypto the exchange supports. There is no platform to support all cryptocurrencies, and if you decide to buy a specific one, you should ensure that it is available on the exchange you choose;
- Check the payment methods – Usually, crypto exchanges support various payment methods. But once again, the region matters, as some options are not supported in specific areas. For example, if you choose a certain crypto exchange and you want to pay via debit card, ensure that the platform supports it.
Such information can usually be found on crypto exchanges’ websites, but if you want to find it all in one place, you can look for a review. However, ensure that it is up to date, as things change pretty rapidly in the crypto industry.
4. Make the Purchase
Once you decide on a cryptocurrency, you set up your wallet and choose a crypto exchange where you register, it is time to make the purchase. And this may be the easiest step.
Crypto exchanges’ interfaces differ, but the process is similar to all of them. After you pass the KYC (Know Your Customer) and AML (Anti-Money Laundering) verification processes, you will have access to all the benefits provided by the platform. The last 2 essential smaller steps include adding a payment method and your wallet address.
Then, you can find the “Buy/Sell” button that is usually on the home page. There, you have to select the cryptocurrency you want to buy, set the amount you decide to purchase, choose the payment method, add it to your account, and continue the process.
After you click on “Buy,” you may need to complete a verification with a 2nd device in some cases. If not, your crypto will be added to your account./ Then, you can transfer it to your crypto wallet for further actions.
Crypto has become surprisingly popular, and many users have decided to purchase their first coin or token to start their crypto journey. If you are wondering how to make your first crypto purchase, the main 4 steps you should follow include choosing a cryptocurrency and a crypto exchange, setting up a wallet, and actually completing the purchase.