Buying cryptocurrency is pretty easy, once you get started. It is the getting started part that is the hardest though. From finding an exchange to setting up a wallet, you have to make sure you are staying safe and taking the proper precautions.
Unfortunately, due to the high amounts available and that people are willing to invest in cryptocurrency, it is a hot market for thieves. Staying safe by doing proper research and learning about some of the best platforms out there as well as the safest wallet practices is important.
Keep reading to learn what you will have to do to buy cryptocurrency, and how to stay safe while doing so.
Steps For Buying Cryptocurrency
Find an Exchange to Purchase Cryptocurrency From
There are many exchanges out there, and some are easier for beginners to understand than others. Ones like Coinbase do most of the heavy lifting for you while others require you to be a lot more invested.
There are also, unfortunately, a lot of fake cryptocurrency exchanges out there. Doing your research before making an account is important.
After you’ve determined that the exchanges that look most interesting to you are real, you also want to look around on the website or app. Are they easy for you to use, and do you understand the process?
From there, you can narrow down your choices, or use a couple at once. Look at their security levels and their fees to help you narrow down your choices. You want high security, but not exorbitant fees. High security is important, because you may be required to put in important information like your Social Security Number, ID, and income sources.
Another thing to check is which coins they exchange. If there are some currencies you want to try or a specific one you want to buy, make sure the platforms you are looking at have the option.
Some of the most popular and well-known cryptocurrency exchanges are:
Fund Your Account
Once you feel safe and confident with your exchange platform, you will want to fund your account. You can usually connect your bank account or a card to your exchange account to make this a lot easier.
Usually, you want to use your bank account directly as the fees for cryptocurrency are often a lot higher with cards.
Like with any investment, only put in the amount you want to use to purchase the currency. Don’t leave any money unattended in your currency exchange. You have to purchase the cryptocurrency.
Place an Order
Now that you’ve funded your account, you are ready to order. In some places, you just pick the currency you want to purchase and buy it. Some places allow you to purchase traditionally, and based on a limit.
Limit means that you can set a price you are willing for the cryptocurrency. Once the currency reaches that point, your account will automatically purchase it.
Some currencies, like Bitcoin, you likely won’t be purchasing a whole coin at once. This is because one coin can easily be worth $34,000, though the price has been slowly dropping. This is fine, as buying a certain portion of a coin still provides you with cryptocurrency investment.
You can also take risky investments by purchasing a large number of coins that are still low in price, and hope that the demand rises and you make money. However, this is only recommended once you start understanding more about currency, or are experienced in risky investments like this.
Small purchases are okay though if you want to start getting a taste for it.
Choose a Safe Storage Method
Once you buy the cryptocurrency, you need a place to put it. It is possible to leave it on the exchange website itself, and this is fine for small amounts. However, once you start earning bigger amounts and getting rewarded for your investments, you may want to start looking at other, safer methods.
There are three wallet types available currently.
- The Exchange’s Wallet. This wallet is connected directly to the exchange you are using to purchase and trade crypto. This is a good place to keep small amounts you might use later to transfer. Or, if you only have a little cryptocurrency initially, it doesn’t hurt much to leave it here. However, they are far less secure than other methods, so once you start getting into larger amounts, it is worth looking at something a bit safer.
- Hot Wallets. Hot wallets are convenient and similar to exchange wallets, but they still lack security as they are always connected to the internet. If you are on the go a lot and have to use different computers, phones, and tablets to check and move your currency, this is a fine method.
- Cold Wallets. Cold wallets are by far the most secure. They keep your currency offline such as on a hard drive or a USB stick. Since they are not connected to the internet, you have a much higher level of security. They are a pain to constantly use, so this is where you use the currency you want to keep safe and have no intention of selling or moving around a lot. However, since they aren’t online, you can lose them or damage the devices they are on. This means you may never have access to that currency again. Also, if you get locked out, it is almost impossible to recover your key code.
What is Mining City?
Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. The idea for the platform was conceived in October 2019 by Greg Rogowski, the brand owner of Mining City and the CEO of Prophetek.
Prophetek is the company behind the Mining City platform. It is based in Cyprus, a country with clearer cryptocurrency regulations than many other European countries.
A technological process, combining low electricity costs with storage and miner improvements, known as “Smart Mining,” became an effective way to obtain BTC.
Is Mining City Legit?
Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets.
There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams.
The cryptocurrency and crypto mining industries are new and gradually become more and more regulated markets. As new regulations go into effect, reputable market players, like Mining City adjust. This may mean leaving markets where crypto-related activities face new bans. That may also mean having to adjust products or services to stay in line with new laws.
You can follow Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter to observe what Mining City undertakes to adjust to new regulations and requirements and to give Mining City your support in their efforts to become fully compliant.
Getting started in cryptocurrency can be an excellent way to start investing and earning money. Right now, cryptocurrency prices are dropping pretty heavily. While this could be a sign of continuously lower prices, it also means that they are cheaper to buy. If prices do increase again, you will have currency for a lot less than it is worth.
However, to get started, you have to understand how the markets work. Now that you understand more about wallets and some of the best websites you should use for exchanges, you are ready to get started and start learning about the crypto investment world.
I’m a leading crypto author with over 10 years experience in the industry. I have been featured in numerous publications and am a regular speaker at major crypto events. I’m also the founder of Crypto Academy, which is dedicated to providing education on all things crypto.