If you are a newbie in the world of cryptocurrency, you might be finding it difficult to know how to properly invest in the market or buy your first crypto.
Thankfully, it is not as hard as you might think it is, all you need to do is follow some easy laid down steps and you will get it. In this post, I have tried to break it down so it is as easily understandable as possible. Stick with me and let’s go through the steps together.
- Choose a crypto exchange
- Create an account and verify it
- Deposit cash you want to invest with
- Place your first buy order
- Choose a preferred storage method
1. Choose a Crypto Exchange
The first thing you will have to do before you invest in cryptocurrency is to choose a crypto exchange you will want to trade on. There are lots of exchanges available out there, so you will have to choose one that matches your preference. In case you are not familiar with what a crypto exchange is, let me break it down still.
What is a Crypto Exchange?
A crypto exchange is an online platform or a marketplace that allows you to buy, sell and also store cryptocurrencies. As earlier stated, there are lots of crypto exchanges available and they all offer similar products. Some exchanges are complex for beginners, and some are very beginner friendly. Check out our previous article best crypto Exchange for beginners to know which fits your need best.
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Some of the most popular cryptocurrency exchanges available are Coinbase, Binance, Bitfinex, and Gemini.
Learn more about the crypto exchange.
2. Create an Account and Verify
After deciding on the exchange to trade with, the next thing you will do is to create an account on the platform and then go through with the verification process. Verification is important as it helps to reduce fraud. Depending on the exchange you choose, you might not be able to withdraw your crypto or money until you have verified your account.
Some information required for creating and verifying your account includes but is not limited to:
- your full name
- email address
- a Government-issued identification card (could be a driver’s license or a passport)
3. Deposit the cash you want to invest with
You will need to have money funds in your account to be able to buy any crypto. Once you have your account, deposit the amount of money you wish to spend on cryptocurrency into your exchange account.
There are various ways to deposit. Some exchanges allow you to link to your local bank account, you can also deposit by using a wire transfer and also by using a credit/debit card. Depending on the exchange you choose, you might have to wait for a few days before you can use the deposited money.
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You should also be aware that depending on the payment method you choose, specific fees might be attached. The easiest way to deposit for me would be using a credit/debit card.
4. Place your first buy order
Once you have created an exchange account and deposited money in it, you are ready to place your first order and buy cryptocurrencies. There are thousands of cryptocurrencies available to choose from.
At this point, I assume you must already be familiar with the likes of Bitcoin, Ethereum, Binance Coin BNB, Tether USDT, and USD Coin. These are some of the most popular crypto available with a very large market cap.
You can now proceed to the exchange and select the crypto you decide on by searching for it on the platform.
NOTE: You don’t have to buy the full value of a coin, you can buy fractions of it. You can buy as low as $10 worth of Bitcoin and Ethereum.
Below is a list of the top 10 cryptocurrencies to invest in in September.
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- XRP (XRP)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Binance Coin (BNB)
The above list was compiled based on the market cap as of August 31, 2022.
5. Choose a preferred storage method
Cryptocurrency exchanges are not backed or protected like banking, so storage is a very big deal when it comes to exchanges. Once crypto is lost or stolen, it is almost impossible to get it back.
So the choice of storage depends on you. Most crypto exchanges offer inbuilt wallets where you can leave your coin after purchase and trade with it. Other alternatives give you full control over your assets which involves you transferring your crypto out of the exchange onto the wallet. There are different types of wallets available.
In case you don’t know what a crypto wallet is, it is an application (either software or hardware) that is used to store cryptocurrency. You can look at it like a bank account where you save your local currency.
Below are the top 5 crypto wallets available:
- Coinbase wallet
- Binance
- Trezor Model T
- Exodus
- Trust Wallet
Disclaimer: The post above represents the opinions of the contributor who authored the blog post. We do not impose any thoughts on you or intend to define your experience. We, therefore, suggest that whatever you do with this blog post, however you react to the writer’s opinion, should be purely based on your research and personal convictions—what you do with this information is solely your decision.
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.