How To Buy Cryptocurrency Safely?
How To Buy Cryptocurrency Safely?
This is a guide mainly for beginners about how to buy cryptocurrency safely? If you are planning to invest in crypto then my first advice does not invest more than you can lose. Nothing in this life is guaranteed and the crypto market really volatile. If the stock market falls 7% or rises 7% in a day then it will make the head news. But in the crypto world, it’s just another normal day. You can see your crypto price fall 50% or rise 50% in a single day. So if you invest in crypto only invest what you are willing to lose.
Now if you do not have stomach for that then I highly suggest you do not enter the crypto market. And if one of your friends is convicted that you can get rich in crypto then I have to inform you that this is only a myth. You read the top myth about crypto. After reading everything if you still want to get to the crypto market then let’s get to the main topic.
Before we jump to that first you have to sort out some things. For example, which country do you live in? Which cryptocurrency do you want to buy and lastly which payment method is available to you? Considering those you have to take the next steps.
Choose a Crypto Exchange
To buy bitcoin or to buy any cryptocurrency you need first to find a crypto exchange. What is a crypto exchange? It’s a place where buyers and sellers can exchange their bitcoin with dollars or just change cryptocurrency like bitcoin for Ethereum.
Good thing is that there are more than hundreds of exchange companies out there, But if you are new to this then you need to find out the one with low fees and top security. You can check our top crypto exchange article. It will help you pick an exchange if you already don’t have one.
Now that the exchange is on the clear you need to find out that if the exchange has a bitcoin wallet built-in. If yes then good if not then you need to find one on your own. You can also have the option to buy bitcoin directly through Paypal or Venmo however you can not move your coin to another platform. So I wouldn’t suggest it if you want to move around your coin.
Chose your payment method
it’s time to decide your payment method, you have to have funds on that account to invest in bitcoin. How to add funds? Well, depending on your exchange you can bank transfer the money. You can use Paypal, Wire transfer, cryptocurrency wallet, or even with credit or debit card.
Always remember different coin exchange has different fee rate. Also, the crypto exchanges can have different charging fees on different payment methods. For example, in Coinbase you don’t have to pay anything for an electronic transfer from a bank account. But you have to pay $10 on wire transfer and 2.5% if you use Paypal.
If you are paying attention then by now you already know it is far better if you use electronic transfers from a bank account. No fee after all.
Make your Order
After finding the exchange and funding your account it’s time for placing an order. Even though all crypto exchange is pretty similar still there is some variation here and there. For example, somewhere you can be able to place an order by just simply tapping a button, in another place you might have to enter the bitcoin symbol (BTC). After that, you just put the amount to invest.
When the transfer is complete you will like to own a portion of bitcoin. Why a portion? Well, bitcoin is pretty expensive, to say the least. Right now one bitcoin cost 40k so if you have to buy one bitcoin you have to invest $40,000. Less than that you will get a percentage of bitcoin. Something like 0.015% of a bitcoin.
How to Sell Cryptocurrency
Now that you have bought bitcoin and probably made some profit it’s time to sell your bitcoin. how you would do that? You can place a sell order on that same crypto exchange that you initially brought from. The most exchange has multiple order type for both selling and buying. You can sell a portion of your bitcoin or the whole thing. You also can place a bitcoin buying or selling order if the price reaches a certain limit. However in this case you have to store money or your crypto on your exchange account. Which I do not recommend.
Once the sale goes through you can send the money back to your bank account. Your exchange might need a few hours before you can make the transfer to your bank account It’s pretty normal, nothing to worry about. When you sell your bitcoin and make a profit you have to pay the capital gain tax from your profit. Do not avoid or try to cheat it. You may end up regretting it later.
If you are here reading this article that means you have decided to buy bitcoin and hope you got a good idea of How To Buy Bitcoin Or Cryptocurrency? But please understand that the crypto market is extremely and I mean extremely volatile. You can lose all your money. So if you decide to invest then please invest only what you are willing to lose. Also, read how to store your crypto safely.
