How to Buy Crypto: The Start of the Trading Journey for New Investors

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Singh Neeraj Shekhawat

Dec 4, 2024 — 3 min read

How to Buy Crypto: The Start of the Trading Journey for New Investors

It is not a secret that cryptocurrencies have become an integral part of our financial lives. Despite the seemingly complicated structure, the process of crypto trading is quite logical and can be simplified if you follow the sequence of several steps. This article explores the course of action new investors should undertake if they want to know how to buy crypto.

What is Cryptocurrency?

Before you start gathering information about how to buy crypto, it is fundamental to understand the basic notions. Cryptocurrency is a virtual asset that utilises blockchain technology for security and transaction transparency. Almost everyone has heard of the first and most popular digital currency—Bitcoin, which was introduced fifteen years ago. Other notable coins include Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).

Cryptocurrency is used for multiple purposes:

Investments (short-term and long-term) and fund sustaining;
Payment for services and goods;
Conducting money transfers without the involvement of the banking system.

Before you start your trading journey, you have to set your financial goals and what you are going to use your assets for.

Where to Buy Crypto?

The choice of the platform is the key element to success. There are two main options:

Cryptocurrency exchange platforms: Official cryptocurrency exchange services like Binance, Kraken, and Coinbase supply a variety of popular digital currencies and altcoins available for trading. Commissions differ among platforms, so it is vital to get acquainted with the list of applicable fees beforehand. Exchange platforms accept different payment types and deliver secure transactions, as each user has undergone the verification process.
P2P platforms: Peer-to-peer trading platforms are similar to marketplace apps, where the deal is executed between two people, without the involvement of the bank or other financial entity. Similar to centralized exchanges, P2P platforms accept versatile payment methods and the prices for some assets might be quite profitable as they are set by the sellers. However, when choosing this method of how to buy crypto, one must be aware of scammers, as transactions are mostly trust-based.

Be aware that to ensure maximum security the majority of platforms are implementing the KYC (Know Your Customer) process of identity verification. To create a trading account, you will be required to input contact details and provide a valid form of identification.

How Do You Choose Cryptocurrency and What are the Payment Methods?

There are hundreds of coin types on the market, and if you are a newbie and are still learning how to buy crypto then this diversity can become overwhelming and confusing. Newcomers can start investing small sums into popular currencies like Ether or Bitcoin to get acquainted with the market and price fluctuations. Popular currencies are more stable and possess high liquidity. And after the initial investment has been made, it is possible to start thinking about diversification. Study information about each currency you are interested in, compare the price graphs, and analyse the prognosis.

Key factors to consider:

Total market value
Current price and dynamics
Practical use and expansion opportunities

There are several payment options for cryptocurrency: using a credit/debit card, via bank transfer, using payment systems like PayPal or Skrill, or even using cash (on P2P platforms). Remember that each method has commissions and you should check its amount on the platform.

How to buy crypto becomes a simple process if you follow these easy steps and spend time educating yourself about the basics of the market. Start by choosing a reliable platform, purchasing your first asset, and securing your funds. For more information, platform reviews, and cryptocurrency trading tips, make sure to visit your reliable partner https://blog.ellyx.com/blog/how-to-buy-and-sell-crypto/. You will find everything you need for a successful start in the world of digital assets!