A Beginner’s Guide On How to Buy Bitcoin and Other Cryptocurrencies

So you’ve brushed up on your knowledge about cryptocurrency, understand the financial risks involved, and have met your primary financial obligations. Now you’re ready to invest in crypto.

There are literally thousands to choose from, although there are only a handful that you ought to consider. If your goal is steady, long-term gains, opt for the well-established cryptos such as Bitcoin and Ethereum. But if you want to potentially make more money and are willing to accept the nerve-wracking volatility that comes with it, lesser-known altcoins might be more your thing. Regardless of what you’re looking for, here are some tips to get started when you’re investing in crypto for the first time.

1. Choose an Exchange

Buying crypto isn’t as simple as walking into your bank and swapping dollars for Ethereum, although someday it could become a reality. But for now, it’s only possible through cryptocurrency trading platforms. There is no shortage of exchanges, although if you want to be sure the platform is on the up and up, Coinbase, Kucoin, Kraken and Gemini are the best mainstream choices.

Security

Be aware that cryptocurrency investments are not FDIC-insured. So if your account is hacked, your investments could vanish. This is why you should choose a platform that has a good reputation. In particular, they should use offline, cold storage.

Fees

Some platforms charge a flat fee per transaction, while others take a percentage of your trade. You don’t necessarily want to go with the exchange that charges the lowest fees since the ones with the best reputation, such as Coinbase, also provide the best service and security. Also note that if you buy crypto at the market price (known as a maker fee) rather than waiting to buy it at the price you set (called the taker fee), you’ll save money. Bottom line: read up on the platform’s fee structure before signing up.

Available coins

Not all exchanges offer every single cryptocurrency out there. On the other hand, it is probably a good idea to stay clear of the most obscure altcoins. Mainstream platforms offer the most popular coins such as Bitcoin, Ethereum and Litecoin while also selling less-known coins that are known to be reputable.