How to Buy Cryptocurrencies for Beginners [Guide]
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Discovering the world of cryptocurrency might seem overwhelming for a beginner, but understanding the process of making your first trade and effectively managing your investments can clarify the complexity. This "how to buy cryptocurrencies for beginners" guide will take you through the steps of purchasing crypto, from researching which cryptocurrency is best for beginners to discovering how to buy crypto low and sell high.
How to Buy Cryptocurrency
The easiest way to purchase crypto is by using an exchange. There are three primary types of exchanges to choose from.
Centralised Exchange: Suitable for Beginners
Centralised exchanges work as transaction intermediaries, ensuring customers receive what they pay for. These exchanges sell crypto at market rates and generate revenue through service fees. While they are user-friendly, centralised exchanges can be attractive to hackers due to the large volume of crypto and cash they handle.
Pure-Play Crypto Exchanges: Focused on Cryptocurrencies
Pure-play crypto exchanges like Coinbase, Gemini, and Kraken are best suited for those seeking exchanges solely dedicated to cryptocurrency. These platforms provide a wider range of cryptocurrencies and more options for on-platform crypto storage. However, they do not grant access to traditional assets like stocks and bonds.
All-in-One Exchanges: Trade Crypto and More
Investors familiar with traditional brokerage accounts can opt for online brokers offering cryptocurrency access.
Decentralised exchanges: Competitive prices but more complexity
Advanced investors may prefer decentralised exchanges, which typically have lower fees than centralised platforms. These exchanges can be more challenging to use and require technical expertise. However, they offer certain security advantages as they lack a single target for cyberattacks. Peer-to-peer transactions also allow for cryptocurrency trading.
How to buy crypto with a card
When purchasing cryptocurrency with a credit card, you'll need to choose a card and exchange that allows purchasing the desired crypto and accepts credit cards. Although the process is smooth, transactions take time to complete. The exchange must verify the transaction to confirm its legitimacy and prevent any potential fraud.
How to buy crypto with cash
Although numerous cryptocurrencies are traded globally, the most popular ones can be easily purchased using fiat currencies like the US dollar. First-time buyers may need to fund the account with fiat money before purchasing any crypto.
Alternative Ways to Buy Cryptocurrency
There are alternative ways to purchase cryptocurrency that simplify the process using cryptocurrency brokers. These brokers provide user-friendly interfaces that interact with exchanges on your behalf. Although some brokers charge higher fees than exchanges, others claim to be "free" by selling information about your trades to larger brokerages or funds or not executing your trades at the best market price. Robinhood and SoFi are popular examples of crypto brokers.
How to sell cryptocurrency
Given the recent price drop in most cryptocurrencies, you may be interested in learning how to withdraw your investment. Despite the current downturn in the crypto market, traders can convert their digital money into US dollars. However, it is worth noting that certain organisations have hindered investors from cashing out their crypto for fiat money.
How can I sell crypto to debit cards?
A cryptocurrency exchange is a digital platform where you can exchange or sell your cryptocurrency for traditional currencies like US dollars. To get started, sign up for an account on the exchange, deposit your cryptocurrency, place a sell order, and once it's executed, you can transfer the funds to your bank account.
How to sell crypto for cash
One of the simplest methods to convert your cryptocurrency or Bitcoin into cash is through a centralised exchange. Many exchanges provide a user-friendly "buy/sell" option where you can select the cryptocurrency you wish to sell and specify the amount.
How to sell crypto from a wallet?
Selling your cryptocurrencies through a cryptocurrency exchange site is the most straightforward and secure method. If you still need a cryptocurrency exchange wallet, create an account with a reputable site and transfer your coins there for selling.
Once your coins are in the cryptocurrency exchange wallet, selling them is straightforward. Select the coin you wish to sell and navigate to the selling market. Enter the quantity of coins you want to sell and the desired price, then submit your selling order. The system will handle the rest by finding a buyer willing to purchase your coins at the specified price.
Once the order is processed, you will notice the coins disappearing from your wallet and being replaced by real currency. You can withdraw the money received for the coins by initiating a bank transfer to your bank account. Alternatively, you can use the funds to purchase other cryptocurrencies if desired.
5 Best Cryptos to Buy
Which cryptocurrency is best for beginners? We'll try to answer this question with a collection of the five top cryptocurrencies that could be worth investment.
Bitcoin
Bitcoin has the longest history among all cryptocurrencies, making it the leader in the market. Its price and market cap far surpass those of other crypto investments. Numerous businesses already accept Bitcoin as a form of payment, making it an intelligent choice for investment. Notably, Visa engages in Bitcoin transactions, and Stripe, in partnership with OpenNode, enables merchants to settle transactions and convert payments into Bitcoin. Even major banks have started incorporating Bitcoin transactions into their services.
Ripple
Ripple is a digital asset in the DeFi space that supports real-time global payments by enabling low-cost and efficient financial transfers. The average customer can save up to 60% in transaction fees compared to traditional providers. Ripple's main advantage lies in its wide range of use cases, which is a major factor driving the expected increase in token value. RippleNet, one of the top Fintech payment systems in the last decade, is built on the foundation of Ripple. The native coin, XRP, facilitates international payments and reduces the processing time for cross-border financial transactions.
Ethereum
Ethereum is a network that enables developers to establish their digital currency and implement smart contracts using the network. While Ethereum's value is lower than Bitcoin's, it surpasses its competitors significantly. Despite being introduced later than other cryptocurrencies, Ethereum has outperformed its market position due to its distinctive technology. It is presently the leading blockchain platform and the second-largest cryptocurrency after Bitcoin.
Bitcoin Cash
Bitcoin Cash (BCH) tokens were initially given to Bitcoin holders following the original hard fork. The great news is that acquiring BCH has become as simple as purchasing morning coffee, thanks to the internet and readily accessible open-source software that facilitates cryptocurrency transactions. Open-source software is developed using freely available codes and technology, enabling users to buy and sell cryptocurrencies without any upfront fees.
Litecoin
Litecoin (LTC) is an open-source blockchain project launched in 2011. It is based on Bitcoin's code but designed for faster transaction confirmation times. LTC can be used for global peer-to-peer payments without intermediaries. Often referred to as "silver to Bitcoin's gold," Litecoin has 84 million tokens.
Buy Cryptocurrency on StormGain
To purchase cryptocurrency on StormGain, simply create an account and locate the 'Buy crypto with credit card' option on the app or web platform. Then, use your debit or credit card to acquire cryptocurrency and deposit funds into your account.
Safe way to buy crypto on StormGain explained
Learn how to purchase cryptocurrency using a credit card effortlessly through our app. We offer a convenient method to buy crypto with your credit card and store it securely in our free StormGain crypto wallets. Follow these simple steps described in the video to get started.