With so much buzz around cryptocurrencies, it’s easy to forget that initial entry into the industry can be daunting for newcomers. With rapid developments and thousands of currencies, a helping hand for beginners is always welcome for questions as simple as: how do you buy and sell cryptocurrency?
In this comprehensive guide, we’ll break down the steps new users should follow when purchasing cryptocurrency as complete beginners.
We’ll provide valuable insights and expert advice on navigating the process to help potential crypto owners make informed decisions and feel confident in their purchase choices. Whether looking to purchase Bitcoin, Ethereum, or any other digital asset, this guide will help demystify the process and ensure a smooth and easy buyer journey.
Let’s dive in!
Before purchasing cryptocurrency, it’s essential to understand the basics behind the technology. Cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike traditional currencies, it operates independently of central banks and is decentralized. Various cryptocurrencies are available and it’s crucial to research each feature, advantage and risk to make an informed decision.
Research the most popular cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. There are thousands of cryptocurrencies in existence that are available to purchase today and choosing which coin to buy can be initially daunting. However, we advise sticking to the top 100 coins as a start.
When researching cryptocurrencies, look for information on their technology, use cases, adoption rates, and market capitalization. Consider volatility, regulatory risks and other factors that affect the coin’s value.
Choosing the right cryptocurrency platform is crucial when purchasing cryptocurrency. When settling on a platform, there are several criteria that are necessary to evaluate. Here are some things to look out for when making your choice:
Signing up for a cryptocurrency platform requires careful consideration to select a trustworthy and reputable platform that meets users’ needs. Platforms like CoinPayments is a popular choice for many industry newcomers.
With its extensive market experience since 2013, CoinPayments meets the highest standards for security and compliance. It’s among the best user experiences and has one of the lowest transaction fees available (starting from just 0.5%).
Compliance features in crypto include Know-Your-Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) regulations. KYC is a regulatory requirement helping prevent fraudulent activities like money laundering. Most cryptocurrency platforms have a strict KYC process users must complete before they can use it. The process involves providing personal information and identification documents for identity verification.
KYC information varies from platform to platform. It usually includes a user’s full name, date of birth, residential address, and identification documents like a passport or driver’s license. After verifying the account, users can deposit funds and purchase cryptocurrency.
The KYC process is an important step in protecting user accounts. By verifying the owner’s identity, the platform ensures only authorized access to its services. For a smooth onboarding, provide accurate and up-to-date information and follow the platform’s guidelines to avoid delays in verification.
The next step is deciding which cryptocurrencies to purchase.
Beginners usually pick major coins like Bitcoin, Ethereum, BNB and Cardano. The choices available depend on the platform used to purchase cryptocurrency.
We suggest selecting a coin available on multiple cryptocurrency platforms and avoiding coins not in the top 100. As users gain more experience, they can investigate a wider range of coins in the ecosystem.
Choosing which coins to buy depends on the user’s preferences and lifestyle.
After choosing which cryptocurrency to purchase, the next step is to pay using a preferred payment method. Cryptocurrency exchanges support many payment options, including debit or credit cards, bank transfers, and e-wallets. It’s also essential to consider the transaction fees and processing time before making a transaction.
Debit and credit cards provide beginners with a convenient option as they’re widely accepted and offer quick transactions. However, they often come with higher fees and lower limits than other payment methods. Bank transfers are usually cheaper but can take longer to process, and e-wallets can offer a balance between speed and affordability.
It’s also essential to note some payment methods may require additional verification steps or have limitations, such as geographical restrictions or daily transaction limits. Therefore, it’s crucial to understand the terms associated with each payment method to avoid any inconvenience.
Once the transaction is complete, the purchased cryptocurrency will be available in the user’s wallet. A crypto wallet is a digital storage space that allows digital asset owners to store, send, and receive cryptocurrency. Wallets can be software (online & mobile), physical (hardware) and paper-based. Each has its unique features and levels of security.
Online wallets are usually the most convenient option since they’re accessible from any device with an internet connection. However, they may be more vulnerable to security threats, like hacking or phishing attacks. Mobile wallets are like online wallets; however, their design is specific for mobile devices and offers added convenience.
Hardware wallets are a more secure option as they store private keys offline, making them less susceptible to hacking attempts. They often come as USB devices and require a physical connection to a device to access user funds.
Paper wallets are a physical printout of a user’s public and private keys, providing an extra crypto security layer. However, they are not user-friendly and require additional precautions to protect against loss or damage.
CoinPayments provides a convenient ‘Buy Crypto‘ functionality that enables users to purchase cryptocurrency directly from their CoinPayments wallet. This feature enables users to buy ten different currencies, including Bitcoin, Ethereum, and Dogecoin, using debit and credit card payment methods. The streamlined process is particularly beneficial for novice users looking to make their initial cryptocurrency purchase.
Purchasing cryptocurrency can be smooth and straightforward with the right support and materials. Newcomers can easily purchase cryptocurrency efficiently.
Want to stay ahead of the curve? You can integrate blockchain-based payments in your business easily. Open a CoinPayments account today and enjoy 0.5% low fees and instant transactions.
DISCLAIMER: The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Readers should conduct their own research and due diligence before making investment decisions. It’s recommended to consult with a licensed financial advisor or professional before investing in cryptocurrencies or any other financial instruments.
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