Cryptocurrency is at once set to ‘be the next big thing’, and simultaneously ‘not to be trusted’, depending on who you’re talking to. It’s a whole new way of looking at money and how we make it, spend it, and buy it. For a more in-depth look at crypto currencies read our introduction to cryptocurrencies piece.
Here we supply a run down of the simplest way to go about buying your crypto of choice.
1. Decide which cryptocurrency you wish you buy
Bitcoin may be getting all the hype, but there are plenty of other cryptocurrencies out there that offer promise for would be investors. Do your research about which one is best for you. This list provides a comprehensive overview of the top cryptocurrencies available and their current value.
2. Get the right cryptocurrency wallet
Depending on the crypto you buy, you need to make sure you have a wallet that can store it; nothing worse than trying to store your Bitcoin in a wallet that can’t facilitate it. Do your research on this, and make sure you get the most secure wallet available, because if your currency is stolen there is no system of recovery, as there is in a conventional banking system. Mycelium, Exodus, or Copay, are all well-known crypto wallets.
3. Get yourself to a cryptoexchange
Whilst there are a number of cryptocurrency exchanges out there, Coinbase is widely regarded as the safest and most reliable exchange for those wishing to trade in the more well-known cryptocurrencies (such a Bitcon). You will need to verify you identity to set up an account, but you can download the programme as an app to your phone and it has an easy to use interface. It’s literally just as simple of choosing the currency you want to buy, putting in how much ‘real’ money you want to spend buying it, and then clicking the buy button.
Just don’t be surprised when coinbase charges a small fee. This is standard practise, and all mainstream cryptoexchanges charge a fee for buying and selling coins.
Couldn’t be easier, am I right? Gone are the days of the dark web, hackers, and any kind of difficult identification process, in order to get your hands on a cryptocurrency. It’s now all easy and above board. However, there are a few things you should take note of before you decide to buy.
1. Don’t invest more money than you can afford.
The Bitcoin explosion was an anomaly that isn’t set to be repeated any time soon. Don’t ever put in more than you can afford to lose.
2. Do your research.
Make sure that the cryptocurrency you want to buy, and the process you want to follow, is legal in your country
3. Be internet savvy.
Make sure you have all the requisite protections and safeguards against being hacked. As I said earlier, this isn’t a conventional banking system where money will be replaced. When it’s gone it’s gone. So make sure you’re safe.
4. Speak to an advisor before you make any big financial decisions.
They’re the experts, it’s what they’re there for.