You have decided to invest in cryptocurrency. Maybe you have done your research on blockchain technology and come to the conclusion that it is the future or you have watched a friend reap in huge profits through Bitcoin and are still kicking yourself for not following suit. Either way, purchasing Bitcoin or any one of the various cryptocurrencies available in the market can be easy and fun. As long as you are not going in with the expectation of making millions of dollars overnight, you will be able to reap the benefits in the future.
Here are the steps you need to follow when you are buying cryptocurrency for the first time:
- Find a legitimate exchange
A website that can be used for converting your fiat money into cryptocurrency is defined as an exchange. A number of them serve as clouds or ‘wallets’ for keeping your virtual currency. The choice of exchange can depend on a number of factors such as your physical locations, the cryptocurrency you wish to buy and if you don’t have a problem with providing identity verification. One of the most popular exchanges is Coinbase, but there are others such as Kraken, CEX.io and LocalBitcoins that can be used.
- Make an account and get verified
Some form of verification is required by almost all exchanges. This means that you may have to provide personal information like billing details. Your ID card may need to be scanned for this purpose. Depending on the website, the verification time can vary between 1 and 5 business days so you shouldn’t expect to make a cryptocurrency purchase right away.
- Deal with the payment forms
Some exchanges require you to register your bank accounts or link your debit or credit cards to pay for your cryptocurrency purchases. Others let you buy cryptocurrency with PayPal. Once you have decided the mode of payment you wish to use, you can deposit the desired fiat amount to the website. Again, a couple of business days may be needed for this step to be complete.
- Do your purchasing
When your account is made, verified and payment method processed, you move onto the easy part; make your purchase. You have the option of using your entire fiat deposit to invest in just one cryptocurrency or you can choose to spread it out on various exchanges. It will take you a few minutes to hours and you will be the owner of cryptocurrency.
- Move the currency into a wallet
You have finally invested in cryptocurrencies and it is a proud moment, but you should get ready to move it from the exchange and into a wallet. These exchanges are not very strong and stable because they are mostly startups and this makes them vulnerable to hackers. Therefore, it is a good idea to transfer your purchases into a cryptowallet. You can find web wallets, hardware wallets, offline software wallets as well as paper wallets that are aimed at keeping your cryptocurrency investment secure.