Want to buy Crypto? Here is a beginner guide

Don’t be intimidated — buying crypto is easier than ever.

With how much prices have been going up, crypto is an exciting investment. But when you’re just getting started, the buying process can seem confusing, and you may be unsure how to begin.

First of all here is a kindly reminder Crypto is still volatile and can be a High-risk investment.

What is Cryptocurrency?

Cryptocurrency is decentralized digital money that’s based on blockchain technology. You may be familiar with the most popular versions, Bitcoin and Ethereum, but there are many more cryptocurrencies in circulation.

Bitcoin was the first cryptocurrency, first outlined in principle by Satoshi Nakamoto in a 2008 paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” Nakamoto described the project as “an electronic payment system based on cryptographic proof instead of trust.”

That cryptographic proof comes in the form of transactions that are verified and recorded on a blockchain.

What is blockchain?

A blockchain is a decentralized database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party.

How does a blockchain transaction works?

Blockchain vs banks

Feature Banks Bitcoin
Hours open Typical brick-and-mortar banks are open from 9:00 am to 5:00 pm on weekdays. Some banks are open on weekends but with limited hours. All banks are closed on banking holidays. No set hours; open 24/7, 365 days a year.
Transaction Fees Card payments: This fee varies based on the card and is not paid by the user directly. But the effect of this fee can sometimes make the cost of goods and services rise.
Wire: Outgoing domestic wire transfers can cost as much as $25. Outgoing international wire transfers can cost as much as $45.
Bitcoin has variable transaction fees determined by miners and users. This fee can range between $0 and $50 but emerging blockchain every offering transaction for very low fees.
Transaction Speed Card payments: 24-48 hours
Wire: Within 24 hours unless international
*Bank transfers are typically not processed on weekends or bank holidays
Bitcoin transactions can take as little as 15 minutes and as much as over an hour depending on network congestion but some chains are offering almost instant transactions (a few seconds)
Know Your Customer Rules Bank accounts and other banking products require “Know Your Customer” (KYC) procedures. This means it is legally required for banks to record a customer’s identification prior to opening an account. Anyone or anything can participate in Bitcoin’s network with no identification. In theory, even an entity equipped with artificial intelligence could participate.
Ease of Transfers Government-issued identification, a bank account, and a mobile phone are the minimum requirements for digital transfers. An internet connection and a mobile phone are the minimum requirements.
Privacy Bank account information is stored on the bank’s private servers and held by the client. Bank account privacy is limited to how secure the bank’s servers are and how well the individual user secures their own information. If the bank’s servers were to be compromised then the individual’s account would be as well. Bitcoin can be as private as the user wishes. All Bitcoin is traceable but it is impossible to establish who has ownership of Bitcoin if it was purchased anonymously. If Bitcoin is purchased on a KYC exchange then the Bitcoin is directly tied to the holder of the KYC exchange account.
Security Assuming the client practices solid internet security measures like using secure passwords and two-factor authentication, a bank account’s information is only as secure as the bank’s server that contains client account information. The larger the Bitcoin network grows the more secure it gets. The level of security a Bitcoin holder has with their own Bitcoin is entirely up to them. For this reason it is recommended that people use cold storage for larger quantities of Bitcoin or any amount that is intended to be held for a long period of time.
Approved Transactions Banks reserve the right to deny transactions for a variety of reasons. Banks also reserve the right to freeze accounts. If your bank notices purchases in unusual locations or for unusual items they can be denied. The Bitcoin network itself does not dictate how Bitcoin is used in any shape or form. Users can transact Bitcoin how they see fit but should also adhere to the guidelines of their country or region.
Account Seizures Due to KYC laws, governments can easily track people’s banks accounts and seize the assets within them for a variety of reasons. If Bitcoin is used anonymously governments would have a hard time tracking it down to seize it.
Source : Investopedia

If you’re looking for more information about cryptocurrency and blockchain, I suggest: google it and you’ll find plenty of information.

How to buy crypto?

Your first step when investing in crypto is to choose a reputable exchange. An exchange is where you’ll be buying, selling and, likely, storing your crypto. There are plenty of exchanges but here are the 3 best exchanges for beginners :

1. Binance 

Binance Exchange is the largest crypto exchange by trade volume and one of the fastest in the world.

You can follow our side tutorials to make your first steps in the Binance ecosystem:

2. Kucoin

KuCoin is a global crypto exchange that provides a number of trading options to its six million users.

You can follow our side tutorials to make your first steps in the Kucoin ecosystem:

3. Huobi

Huobi.com is the world-leading Bitcoin and Ethereum trading platform, providing secure and convenient trading services for hundreds of digital assets.

You can follow our side tutorials to make your first steps in the Kucoin ecosystem:

Which crypto to invest in

Bitcoin isn’t the only digital currency actually there are a lot, in fact more than 7500

You can find an extensive list with basic information of all crypto on Coinmarketcap

The main advice we can give is: DYOR, it’s a word you’ll see very often in the crypto world that means: Do Your Own Research. Never buy crypto after you saw a Tik Tok video or so, always proceed with your own investigations first.

Choosing the right cryptos for your portfolio may come down to which ones you believe in. For example, do you think Ethereum has more technical merit and worldly applications than Bitcoin?

Maintain Your Investment

Your final step is to maintain your crypto investment. The only way to do this step incorrectly is to buy crypto and completely forget about it. You avoid crypto investment missteps by:

  • Adding your crypto to your main investing dashboard so you can monitor its performance over time.
  • Since crypto trading is still the Wild West, check headlines regularly to monitor regulatory scrutiny of your chosen exchange.
  • Immerse yourself in crypto communities. Visit the crypto subreddit, then sort by new and hot topics. Consider also joining a crypto community via your preferred social media platform, or even attending in-person crypto conferences or meetups.
  • Monitor which governments are banning crypto or blessing it as legal tender
  • Continue to self-educate on new cryptos and blockchain implementation — and even get paid in crypto for it

You can also place/stake your investment in crypto in order to get substantial revenue out if eg on Binance earn

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