After learning about the various aspects of crypto investing, it’s now time to start taking the plunge. Although there are thousands of types of cryptocurrencies, experts say that most of them should be avoided due to their volatile nature.
Despite the volatility of some of the more significant digital assets, such as Bitcoin and Ethereum, they still have a better track record of increasing their value over time. One way to buy cryptocurrency is with a bitcoin credit card.
To buy Ethereum, you must follow the same steps as those involved in buying Bitcoin. Although it’s the most popular digital asset on the market, Bitcoin is a relatively common purchase. According to the experts at SoFi, “The SoFi Credit Card now lets you redeem points straight into crypto. You’ll earn 2% cash back on all purchases and can redeem it directly into crypto with your SoFi active invest account.”
How New Crypto Investors Can Get Started
1. Choose an Exchange to Use
Although you cannot buy bitcoins through a bank or investment firm yet, some organizations are working on this possibility. For example, to purchase Bitcoin or other digital currencies, you must purchase through a cryptocurrency exchange.
Hundreds of platforms allow people to buy and sell cryptocurrencies online. Some of the most popular platforms include Coinbase, Binance and Kraken. These are platforms that allow users to buy and sell various types of digital assets. So before you choose an exchange, narrow down your choices based on security, fees and available coins.
2. Fund Your Exchange Account
Although some platforms offer all types of digital assets, some may only accept certain types of coins. These are the ones to choose for new investors as experts recommend them. For instance, Bitcoin and Ethereum are typically the most popular digital assets on mainstream exchanges such as Coinbase.
3. Fund Your Account
Before opening an account on a cryptocurrency exchange, you must provide various details such as your social security number and income source. With most exchanges, one can quickly transfer money into their account by connecting their bank or debit card to their bank account. Various fees are associated with this method, but typically, these costs are lower than with credit cards.
Although funding an account is similar to investing, it’s important to note that this method does not replace investing in crypto. However, you must still exchange your dollars for Bitcoin once you have deposited the funds.
4. Place Your Order
Once you’ve connected a payment method, you’ll be able to place an order for Bitcoin. The process can vary depending on the exchange that you use. For example, if you’re using a payment method such as PayPal or Coinbase, you can simply enter the number of dollars you want to spend on Bitcoin. After accounting for all of the fees, you’ll then be able to buy Bitcoin at the current rate.
If you’re trading on a platform designed for active trading, you can also place both limit and market orders. For example, a market order is when you want to purchase a particular digital asset at the current price. On the other hand, a limit order is when you want to set the price you want to pay for the currency.
Keep Storage Safe
Although some platforms allow people to leave their investments in their accounts, others will not. For example, if you’re worried about keeping your digital assets safe, you can transfer them into a secure wallet. A cryptocurrency wallet is a type of secure storage used to store various digital assets. Various types of wallets are available and have varying levels of security.
Despite the recent price swings that Bitcoin has experienced, many experts believe that it’s still a good idea to hold a small amount of the digital asset.