5 Steps Before Buying Cryptocurrency for the First Time

5 Steps Before Buying Cryptocurrency for the First Time

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by Amelia Scott — 3 months ago in Blockchain Technology 3 min. read
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As cryptocurrency has grown in popularity, more people are using digital currencies to invest and purchase online goods and services. Although anyone can get a lot of crypto coins by simply diving in, it is important to first understand the basics of cryptocurrency exchange and the different currencies that you can use. Continue reading for more information!

Introduction to Cryptocurrency

Cryptocurrency, a digital currency, uses cryptography to make it difficult to counterfeit. This ensures that only the sender and intended recipient know the information. Privacy features are available to protect anonymity.


The same rules apply to investing in cryptocurrency as with other assets. Market volatility will occur, as well as some risk. It is important to have a good understanding of the market.

There are many established cryptocurrency exchanges available today that allow you to buy cryptocurrency online. These exchanges are easy to use. If you’re a total beginner, however, the next section will provide more information.
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5 Steps Before Buying Cryptocurrency for the First Time

1. Open an Account

Select a crypto exchange that adheres to security measures. Verify your trading account.

2. Deposit Money

Select the investment option in your account. You should find the steps to deposit your funds on your chosen crypto exchange easy-to-follow.

3. Choose Your Orders

You can use many cryptocurrencies, and the prices will vary. Before you purchase a large amount of your desired coins, make sure that you have enough money in your bank account.
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4. Select your purchase method

Most crypto exchanges allow you to select how you wish to make your purchase. Don’t rush to click – take your time and read the preview of your screen. Then, learn more about your purchase. You can then double-check the price and you’re good to go.

5. Store Your Assets

There are many different crypto wallets, and as an investor, choose a storing method for your digital assets with a particularly good reputation. You can even choose a cold wallet that does not require you to connect to the internet all the time.

Most Popular Cryptocurrencies

There are many cryptocurrencies that you can invest in. For your convenience, we’ve taken a closer look at some of them.

Bitcoin

Bitcoin’s network goal has been and continues to be to make international transfers faster and cheaper. It has held a 47% market share of all crypto exchanges for years. Its widespread adoption and interest from corporate and retail investors can explain this growth. This is a good place to start if you’re thinking of buying crypto.

Ethereum

About 18% of the crypto-exchange volume is made up by Ethereum. Ethereum automatically creates contracts for investors who meet certain conditions. It is the main crypto market for decentralized financing (DeFi).
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Cardano

It functions the same way as Ethereum, which makes use of a local currency to secure transactions. It uses low energy to verify transactions for security purposes, such as the proof-of-stake protocol.

Dogecoin

This cryptocurrency is unique because it has a low price of less than a dollar. Dogecoin’s mining rate is higher than that of bitcoins and developers make sure there are always new blocks to mine each year. Although it’s not the most reliable, DOGE is sure to be a fun ride.

Binance Coin

Binance Coin is the fourth most valuable cryptocurrency coin on the market. It has strict restrictions on token circulation. Its model is also different than any other cryptocurrency.

There are many more. There are many cryptocurrency options that you can choose to invest in. It all depends on your goals and objectives.

Things to Consider

While crypto is now mainstream, you need to be aware that there are still some disadvantages and advantages. These are the things you need to know before diving into the world of cryptocurrency.

1. Do not overestimate your Investing Budget

As an investment, don’t invest too much in cryptocurrency. You won’t be able sell your digital coins at a profit after you have exchanged fiat money.
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2. Learn More About Cryptocurrency

Although it’s easy to open an account and buy digital coins, you need to first understand what cryptocurrencies are all about. Instead of investing your money in crypto, you should invest your time learning about it.


Learn the basics and create your goals and plans. Next, decide which crypto-currency you want to invest in. Also consider where your assets are most suitable for the type of investment you desire.

3. Start small

Start small with your first transaction once you have decided to get started. It will be easier to manage your money with little to lose in case things go wrong. You can view everything in your account as “dead money” to be more responsible with your funds. Think smart about how you allocate your cash.

Amelia Scott

Amelia is a content manager of The Next Tech. She also includes the characteristics of her log in a fun way so readers will know what to expect from her work.

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