More and more people want not only to know what cryptocurrency is, but also to learn how to buy cryptocurrencies and make money on crypto. We will answer these questions as broadly as possible in this article.
Learn all the available information
The first thing to consider is that cryptocurrency is not that complicated, but for a successful purchase, you need to study as much available information as possible. Learn the basic concepts of cryptocurrency, the current situation on the market, the behavior of large investors, and news related to crypto. If your goal is crypto trading, then you should study popular trading strategies, mechanisms, indicators that you should pay attention to, etc.
Unlike financial institutions, cryptocurrency opens up wide opportunities for earning, but it is a high-risk asset. It is recommended to adhere to a few simple rules, thanks to which you can minimize risks and protect yourself from serious losses:
- Diversification of the investment portfolio. It’s better to invest funds into several assets in order to protect yourself from large-scale losses if one asset falls.
- Regular review of the portfolio and taking new trends and changes in the market into account;
- Using the tools that give an opportunity to sell the asset when it reaches a certain value.
Choose the cryptocurrency
There are more than 10,000 cryptocurrencies in the market already. Of course, it is quite difficult to choose from this variety now. In addition, due to the volatility of the market, there cannot be a universal tip.
It all depends on the market situation and the actual state of affairs of a particular currency. In order to eliminate the excessive risks of buying an obviously unpromising asset, the following factors should be taken into account:
- reputation, experience and success of developers;
- innovativeness of proposed technologies;
- competitiveness;
- market capitalization, trading volume;
- fees (transact value);
- price history, charts;
- supporters are among well-known individuals and organizations.
Choosing an exchange
There are many ways to buy crypto, but the most popular one is to do it on cryptocurrency exchanges. Exchanges are divided by the type of management model into centralized exchange (CEX) and decentralized exchange (DEX).
DEX has a higher level of anonymity and such exchanges do not have access to assets and transactions. Private keys are stored by the user. In turn, CEXs act as an intermediary between the parties and a secure storage for assets. They have higher liquidity, a convenient interface, many trading instruments, support for fiat and credit/debit cards. Due to the combination of these qualities, CEXs are considered to be a better solution for beginners.
Choosing a CEX is also a very important step. Most people prefer to choose a large online platform with a good reputation.
Where to buy crypto?
WhiteBIT, the largest European cryptocurrency exchange from Ukraine, with more than 3.5 million users worldwide, is a great example of a crypto exchange.
In addition to standard tools such as two-factor authentication, the WhiteBIT team implemented the following cybersecurity measures: Web Application Firewall (WAF) for filtering external traffic and blocking possible attacks, insurance protection, storing more than 96% of user assets on cold wallets (physical devices without access to impossible access to assets), etc. According to the audit of the CER.live platform, the exchange is among the TOP 3 exchanges in terms of reliability.
More than 270 cryptocurrencies and several fiat currencies (USD, EUR, etc.) are available for users to choose from. Crypto trading is available in spot, margin and futures trading modes. In order to get access to buying cryptocurrency on WhiteBIT, only two conditions must be met:
- you must be registered on the exchange;
- pass KYC verification with your Government-issued ID.
Next, you need to deposit fiat money to the exchange. To do it, go to the balance section and click “Deposit” next to the desired asset. Various payment methods are available for fiat deposits depending on the currency.
All that is left to be done is to place a buy order. Depending on the characteristics of the order, there are several types of orders:
- Market: the purchase is made at the market price;
- Limit: the purchase is made at the set price at the time of the appearance of a counter order to sell at the specified price;
- Stop market: the purchase is made when assets reach the pre-set price.
- Stop limit: the purchase is made when the stop price is reached, the order is activated and executed like a normal limit order.
The process of buying cryptocurrency takes place in the Trade section:
- choose the trading pair;
- set the type of purchase order suitable for your strategy;
- fill in the necessary fields and confirm the purchase.
After your order is executed, the funds are transferred to the user’s Basic balance. As easy as bank transfers!
As you can see for yourself, cryptocurrency opens up many new opportunities for its owners. Depending on your goal, crypto can become your hobby, a way to store wealth, additional or even main income tool.
