So, you intend to use cryptocurrency exchanges to buy bitcoin; well, it is valid to note that digital currency has undergone several ups and downs over the years. Especially with last year’s price that drastically rose.
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The good news is, if you would like to invest in Bitcoin now, you will grab coins for a lot less than you would have when Bitcoin was at the height of madness in terms of prices and popularity.
How are you able to scoop some? First off, you will be required to use a platform to purchase and also, to sell the cryptocurrency, you will also be required to have on your device a wallet app for securely storing your coins.
Statistically, it is proven that if you are from the US and want to acquire some Bitcoin for yourself, be it forked coins the likes of Ethereum Classic or Bitcoin Cash, or Litecoin. Coinbase is the better option as it is far more popular and easier to use.
The platform is rediscovering aid for various other crypto assets, though not for trading but only for wallet storage. Before you dive in even further, it is crucial to understand cryptocurrency and evaluate it from an introductory basis.
What Exactly is Cryptocurrency?
In simple terms, cryptocurrency is a payment method that you can use to trade tokens in return for goods and services online without cutting through the corners. Several companies have come out with their currencies that are mostly referred to as tokens. One can trade these tokens out for specific goods or services provided by that particular company.
It’s just like casino chips; you would need real currency to gain yourself access to them. It is now the same analogy passed onto cryptocurrency. You will be required to trade real currency for accessing goods and services through cryptocurrency.
Cryptocurrency is enabled by a decentralized type of technology known as a blockchain spread across various computers that track records of transactions. Nonetheless, the tech’s level of security has been an appeal for quite some time.
What Do You Consider When Deciding on the Best Trading platform?
The first thing should be the number of available tokens. Also, consider the commissions charged, the platform’s security, user-friendliness, customer service, and the platform’s core features.
What Differentiates a Crypto Wallet to a Crypto Trading platform?
A crypto wallet is for storing your accumulated cryptocurrency, while a crypto Trading platform is made to enable you to trade cryptocurrency in and out with ease.
How Do You Buy Cryptocurrency?
The most effective and straightforward way is to open an account at either of the trading platforms listed below in this article, and deposit some funds to the account. You are later eligible to buy the cryptocurrency of your choice.
Although some only accept specific pairs, you may have to purchase bitcoin to buy some tokens for bitcoin.
How Much Money Do You Need to Get Started?
The least amount you can start with on most platforms is $5. With a start-up as low as that, it makes it quite easy to be part of the cryptocurrency game. Once you’re in and start stacking your income and profits, you can, of course, upgrade to a higher value in terms of the amount you put into your investments.
How Many Cryptocurrencies are Out There?
There is a rough estimate of over 9,000 cryptocurrencies traded publicly; this is according to market research done by CoinMarketCap.com. The number keeps rising as time goes by. Money raised by cryptocurrencies, especially through ICOs (initial coin offerings), has continued to grow.
In fact, by May of the year 2021, cryptocurrencies’ total value had come up to over $1.65 trillion, which was a major drop from a month prior, which was $2.2 trillion. On the other hand, Bitcoin, arguably the most popular digital currency of this time, was sitting at roughly $734 billion, which was also a drop from April, the month prior, sitting at $1.2 trillion at the time.
There’s not much of a difference between investing in BTC and investing in stocks. For BTC, one is required to open an account with a trading site, while in stocks, you are required to open an account with a brokerage, after which you now deposit funds.
On the other hand, the only way these two differ is that with BTC, you must buy BTC, initially using the funds deposited before you can even start to trade BTC. Your first purchase of BTC, however, is your initial opening trade as well.