How to buy cryptocurrency: 10 simple steps
Although the adoption of digital money has been slow, there are many different types of cryptocurrencies. Top on the list is Bitcoin. Cryptocurrencies are speculative assets with price volatility. This means there could be huge spikes and drop in value at a point in time.
That had made such cryptocurrencies to be far too risky and not practical to use in the same ways as fiat currency.
But the gamechanger is the introduction of stablecoins. They are digital currencies pegged to a trusted fiat currency or even to a group of trusted assets. This has made what was once impractical become sensible and beneficial.
This development has made many more people learn how to buy cryptocurrency because stablecoins have eliminated the worry of significant price volatility. They can be used for payment of goods and services, remittances, held as savings, and exchanged freely between users, especially in economically troubled regions, such as Argentina and Venezuela.
It is important to note that the simplest, most direct, and most common way to buy, sell, and store cryptocurrency is to use Coinbase. The exchange is a top-rated, centralized, and fee-charging digital currency firm based in San Francisco, CA.
Coinbase comes highly recommended because its reputation over the years, and it acts as a currency custodian since it is a centralized platform. It, therefore, partners with central banks and other third parties to service users.
Step to step guide of buying cryptocurrency
So, I will be using Coinbase as a guide here because of its reputation over the years.
To open a Coinbase account is simple. Simply follow the step-by-step instructions that will make it easy for you to learn how to buy cryptocurrency.
Visit www.coinbase.com and register an account. To do so, on opening the website, you are given an option of a large graphic that tells you to click on “get started”, asking you to supply your email address.
In case this didn’t work, click on one of the buy options of the cryptocurrencies. A pop-up option will require your details like name, email address, and password to open an account with the exchange.
After filling in all the required information, you click on the policy agreement option to show that you have read the terms and conditions attached to the decisions you are about to make (Many hardly read them, though).
Once the information is entered, you will receive an instant email in your email box asking you to verify your email. This is part of the security measures to ensure you are the one calling the shot.
The following procedure after verifying your mail is to enter your phone number. This way, you will be sent another verification code instantly to your direct line as the firm aims to protect your information at all costs.
The next thing you are asked if you would like to transfer crypto to Coinbase to protect it by moving it from another exchange or wallet. So, as a newbie, you will click on the skip option.
By then, your dashboard is created to see that everything is still zero as you have not made any deposit.
Coinbase even offers you the opportunity to earn free crypto as a welcome incentive. That will allow you to trade with it to learn about different cryptocurrencies and even earn them for free.
You are as well provided with a daily notification guide you need to follow to reduce the risk of losing your investment.
Ready to hit the ground running? Click the “Trade” button, which will prompt you to enter payment information, such as a debit or credit card, and choose a cryptocurrency to buy. The options shown will depend on your location, as the cryptocurrencies’ value will be in your local currency.
After deciding the cryptocurrency to trade in, click “Preview purchase” and then confirm. Once your payment is approved, your wallet is credited instantly. You can review your account balances to ensure this. And, if desired, you can transfer crypto to your wallet.
Always remember to log out and keep your login info and account password safe.
However, suppose you are not living in a region where you will be able to directly purchase a decentralized cryptocurrency using fiat money. In that case, you will first need to buy ETH first and then convert it. This takes only seconds to do.
Once you have bought ETH, Click the “Trade” button to activate the transaction interface on your Coinbase interface.
Then click the “Convert’ button at the top of the box. Select ETH in the “From” box and select Dai in the “To” box. You will then click on “Convert Ethereum” before previewing the conversion information provided.
After confirming it, click “Convert now” to complete the transaction.
Now that you are on your way to earning money from cryptocurrency, welcome to the club.
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Nothing on Cryptinus constitutes professional and/or financial advice. Always think for yourself and make sound decisions when investing. Never invest money that you can’t afford to lose.