Beginner’s Guide to Buying Cryptocurrencies
The Cryptocurrency Craze
With an increasing number of cryptocurrency amateurs coming into the market everyday, it is obvious that there is an increasing rise in demand for resources that guide them along their journey. There are a variety of information providing sites available online to help you with that kind of information. They are needed for the community to get an expanded picture of the whole sector and make informed decisions based on their findings. Readers are encouraged to make use of the resources available and allow themselves to understand and comprehend the crypto sector in a fun and guided way.
Today we are going to talk about one of the most basic and important aspect of getting into the cryptocurrency market – Buying Cryptocurrencies. As the reader might know, cryptocurrencies are a little different from traditional assets such as stocks, bonds, etc., and so their trading differs too.
To buy cryptocurrencies, on has to first keep a few principles in mind. They are very important for anyone who does not wish to lose their savings because of some error they know they could have avoided.
How to be a Vigilant Buyer?
To be a cryptocurrency buyer, you need to ensure that you follow some guidelines or principles to avoid any scams, errors or misjudgments. Since it is still in its nascent stage, cryptocurrencies can look too complex and technical for anyone looking at it the first time. Following are few few guidelines that we urge to readers to keep in mind before rushing to buy.
Choose a Good Exchange
It is important to choose an exchange that meets all the needs of the buyers. Obviously one cannot choose a compatible exchange right away, and so it is recommended that one makes accounts in various exchanges and experiment with all of them before settling on a particular exchanges or exchanges.
Do not fall for scams and phishing sites
Before buying any particular cryptocurrency or any asset in general, we urge the reader to do a brief research into it. It is common for cryptocurrencies to turn out as scams, which can lead the buyer to loose all of their initial funds. DYOR or Do Your Own Research Principle must be followed always.
Double check before sending funds
Before sending fiat to an exchange or before transferring the cryptocurrencies from the wallet to another exchange or wallet, it is always a good practice to double check the funds and the address the funds are being sent to. Wallet IDs are complex hexadecimals and a slight error in entering the address might end up in the loss of funds forever.
Always store large amount in personal wallets
If a large purchase is made on a centralized exchange, the readers are asked to take the effort to store those funds on a wallet they created for themselves, instead of letting the funds lie on the exchange. It is a saying in the community, “Not your funds, not your crypto”, meaning that if you don’t directly own the funds, you lose out to counterparts risk.
Best places to Buy
For investors looking to enter the cryptocurrency space, a centralized exchange is still the most common means of doing so. There are also exchanges that are decentralized, meaning they are autonomous and function without oversight but can be too complex for first time traders to do so. Following is a list of best exchanges we recommend the reader to use along with referring a few local exchanges that can help them to buy the first time.
Coinbase is a centralized exchange, which is also the oldest cryptocurrency exchange out there. It is available to users in over 55 countries as of 2019, and is the world’s largest cryptocurrency broker. Customers can buy bitcoin with a connected bank account, debit card, credit card, SEPA transfer, Interac Online, and many more payment methods.
Coinbase also allows for mobile trading. Mobile exchanges are the life savers for the on-the-go investor, allowing them to execute strategies anywhere and anytime. Unlike traditional trading where on has to wait for the market to open, crypto trading happens 24/7.
Some of the major advantages of choosing a centralized exchange such as Coinbase are:
For a complete review of Coinbase, refer here
Gemini bills itself as the ‘world’s leading regulation friendly cryptocurrency exchange’. It is headquartered in the United States and founded.by Bitcoin Billionaires, The Winklevoss brothers. Boasting more than 100 cryptocurrencies for exchange and very competitive rates, it is no surprise to see that this platform has been head and shoulders above the competition.
Gemini is one of the most lucrative centralized trading platforms for cryptocurrency currently in the market. Gemini is a great exchange for those who value security above all else. This makes it well-suited for those exchanging large amounts of fiat currency for either Bitcoin or Ether. Being fully licensed and offering the additional security features it does makes it one most secure exchanges in the cryptocurrency space.
Like Coinbase, Gemini also offers a Mobile on-the-go exchange for all its users.
For a complete review of Gemini, check here
Coinmama is a US headquartered cryptocurrency trading platform, currently operational in 50+ countries around the world. Coinmama is considered one of the most stringent exchanges out there. For its verification process, Coinmama ensures to collectiona ton of documents, sometimes way more than the required documents set by the regulatory authorities. It claims that it has taken this step to make the exchange as secure as possible.
Coinmama accepts credit or debit cards that is issued by Visa or Mastercard. The company has recently started accepting SEPA payments as well, with 0% processing fees. Prices are denominated in EUR or USD.
When choosing a cryptocurrency exchange, it is important to balance a number of different considerations. Exchanges are all different and different ways of building security precautions, regulating users, building their network, and building a user experience.
You can also checkout out a simple and elegant exchange by CryptoAdventure.org here
At the end of the day, the best advice one could possibly give it to be thorough and DYOR – Do Your Own Research. That’s the best possible strategy when going about deciding on the exchange of your choice
To know more about cryptocurrency exchanges, their classification and more, you can visit our complete guide here.