Although the numbers of cryptocurrency users are still relatively low – with only 2% of American adults owning Bitcoin in 2017 – more and more people are seeking out opportunities to purchase cryptocurrencies.
Which cryptocurrencies to buy
Before purchasing cryptocurrencies, it is important to consider which cryptocurrency to buy. While smaller and newer cryptocurrencies (such as ARK or Siacoin) might seem like a better investment – since they have more potential for expansion – larger cryptocurrencies, such as Bitcoin, can be used much more widely; Bitcoin can even be used in certain stores, and an increasing number of BTC ATMs exist worldwide.
Additionally, potential users should research the cryptocurrency they wish to purchase in terms of its approach to security, its focus on decentralisation, its use of smart contracts and so on, as this can vary from currency to currency.
When to buy cryptocurrencies
Since cryptocurrencies are much more volatile than traditional currencies and can rapidly rise and fall in price, first-time buyers might find it hard to decide when is the best time to buy. It might be a good idea in this regard to track the development of a particular currency for a while before buying, in order to see the trajectory it tends to follow.
How to buy cryptocurrencies
In order to buy cryptocurrencies, users must first acquire a wallet, which is an application that generates and maintains a user’s cryptocurrency addresses, and which the user will use to make transactions.
Secondly, an exchange has to be chosen, a website where traditional currency can be exchanged for Bitcoin. A wide range of exchanges exist and users should consider a number of factors when choosing one, such as the number of different cryptocurrencies the exchange sells, the payment methods it accepts, and last but not least, the fees it charges per transaction.
Once the exchange is selected, the user has to register, by submitting personal information to the system, depending on the jurisdiction involved. At this point, the user can start purchasing coins. Generally, it possible to either buy full coins or fractions of a coin; many cryptocurrencies can be subdivided to multiple decimal points.
Whatever funds a user purchases are initially stored within the user’s account on the exchange system. It is crucial, then, to transfer these coins from the exchange to the user’s wallet’s address, so the coins can no longer be stolen if something were to happen to the exchange. This transfer may also incur a fee, but from this point onward, the Bitcoin are entirely owned and controlled by the user, protected by whatever security systems are operative on the wallet.