How to buy cryptocurrency: a step by step guide
Cryptocurrency, a digital or virtual currency that uses encryption for security and is decentralized, has gained popularity in recent years. With the rise of blockchain technology, investing in cryptocurrency has become more accessible than ever. In this article, we will guide you through a step-by-step guide on how to buy the cryptocurrency.
Why buy a cryptocurrency?
Before we immerse yourself in the purchase of cryptocurrency, we understand why it is worth it. Cryptocurrencies have the potential to be a precious value store and coverage against inflation. Many experts believe that cryptocurrencies can overcome traditional currencies such as the US dollar in the future.
Choose an exchange of cryptocurrency
The first step in the purchase of cryptocurrency is to choose a reliable exchange platform. There are many available exchanges, but some popular options include:
- Coinbase: known for its intuitive interface and a wide range of supported cryptocurrencies.
- Binance: one of the largest exchanges in the world, offering a wide selection of cryptocurrencies and advanced trading features.
- Kraken: a consolidated exchange with a strong reputation for safety and reliability.
When choosing an exchange, consider factors such as commissions, liquidity and support for the choice of cryptocurrency. You must also read the reviews and search for exchange safety measures to make sure your investment is safe.
Definition of your account
To buy cryptocurrency, you will need to create an account with the exchange platform of your choice. Here are the steps:
- Create a new account
: Access the Exchange website and click on “Register” or “Join our community”. Complete the registration form with your email address, password and other details.
- Check your identity : The exchange must check your identity via a document ID issued by the government (such as a passport) or an address test. This is made to comply with the anti-money laundering rules.
- Deposit fund : transfer the funds required to finance your account. Most exchanges accept banking transfers, metal transfers and credit card payments.
Purchase of cryptocurrency
After establishing your account and checking your identity, it’s time to buy cryptocurrency!
- Select your cryptocurrency : Browse the list of cryptocurrencies supported by Exchange and choose what you want to buy.
- Defines a budget : Decide how much money you want to spend on the purchase of cryptocurrency. Consider defining a budget before making a transaction.
- Place a command : Click the “Buy” button next to the choice of cryptocurrency. You will have to select the quantity and price of the medal.
financing your account
To finance your account, you can use various methods:
* Banca Banca : Most exchanges allow you to transfer funds from a bank account.
* Payment of the credit card : Many exchanges accept payments by credit card via services such as Paypal or Stripe.
* ATM Sampling: Some exchanges offer ATM sampling services for a small tax.
Tax implications
As for any investment, it is essential to understand the tax implications of the purchase and the holding of the cryptocurrency. In most countries, cryptocurrency is considered property and subject to gains on capital gains. Consult a financial consultant or a fiscalist to determine your specific tax obligations.
Security precautions
To protect yourself from potential risks, follow these security precautions:
* Use strong passwords : Create unique and complex passwords for your account.
* Activate 2 factors authentication (2FA) : Add an additional level of security by activating 2FA to your account.
* Monitor the activity of your account : Regularly check the activity of the account to detect any suspicious transaction.