Since the early days of bitcoin in 2009, many new cryptocurrencies have been introduced in the market, leading to the expansion of the global crypto trade. The increase over time has also caused famous brands to accept crypto as a payment medium. Moreover, celebrities have also invested in crypto.
All sorts of cryptocurrencies are digital assets that can be added to your investment portfolio. Trade Bitcoin with BitIQ to get deep and strong into the journey of virtual assets.
There are many ways to do that—cryptocurrency functions without a centralized body like a bank. Instead, cryptocurrencies use blockchain technology to transfer to ensure that the transactions are fully end-to-end encrypted.
The bitcoin trading software is notable for automatically swapping cryptocurrencies with other traders, which helps them take advantage of currency value changes. Investors can also easily keep track of current prices and trade currencies whenever they want to.
If you are new to the world of cryptocurrencies, figuring out the whole buying and selling system may appear overwhelming. Fortunately, the process is really simple and can be completed by following a few simple steps.
1. Choosing a broker or a crypto exchange
The first step of buying or selling crypto is choosing a platform that’ll help you do so. Generally, you can choose between a broker or a cryptocurrency exchange. While brokers offer ways to buy and sell crypto at lower trading costs but with fewer crypto features, cryptocurrency exchanges offer a variety of features. The features include wallet storage and options for interest-bearing accounts. However, crypto exchanges have asset-based fee charges.
There are other options too that you can choose from while buying crypto. Payment services like PayPal, Cash App, and Venmo have made it easier to buy, sell, or hold cryptocurrencies like bitcoin in the past year.
In addition, you can also get started with crypto using one of the following vehicles:
- Bitcoin trusts
- Bitcoin mutual funds
- Blockchain stocks or ETFs
Overall, there are tons of different options available. Choose the best choice for yourself based on risk tolerance and goals, and start exposing your portfolio to crypto assets.
2. Fund your account
After choosing a cryptocurrency exchange or broker, fund your account to start trading. Most crypto exchanges let customers buy crypto with real currencies like the US Dollar or Euro through debit or credit cards.
However, credit card crypto purchases are dangerous. For that reason, apps like Coinbase don’t support them. Some credit card providers also don’t accept crypto. As cryptocurrencies are volatile investments, it may not be the best decision to go into debt or pay hefty credit card transaction fees for it.
Other alternative platforms supported ACH payments and wire transfers; however, deposit and withdrawal times vary. Various payment options have different deposit-settlement times. ACH transfers at Coinbase take 3–5 days.
Wire transactions take one to three days, whereas debit card transfers are quick. Charges are another consideration. You may also incur deposit/withdrawal fees. Fees for depositing and withdrawing depend on your payment type.
Coinbase charges debit card transactions 3.99% and wire transfers $10. Free ACH transfers. These fees vary each trade, so compare prices before you begin.
3. Placing an order
Most of the time, all you have to do to place an order is click a button on the web or mobile platform of your broker or cryptocurrency exchange. If you want to buy cryptocurrencies, you can click “buy,” choose the order type, enter the number of cryptocurrencies you want to buy, and confirm the order. Similar steps are taken while selling crypto.
But when it comes to transactions, the price at which your order is executed depends on the type of order you choose. Market orders, limit orders, and stop orders are the three main types of orders. You’ll generally have the same order options as when you buy any other asset.
4. Selecting a storage method for your assets
After you buy cryptocurrency, you’ll need to put it somewhere safe to keep it from being hacked or stolen. This is when you need a cryptocurrency wallet. A crypto wallet is a piece of hardware or software that you can use to store your private keys for your cryptocurrencies in a safe way. Some exchanges have wallet services built right in, which makes it easy to keep right on the platform. But not every business or broker automatically gives you wallet services.