How and Where To Buy Cryptocurrency in 2024- Completes Guide for Beginners
Cryptocurrency is the talk of the town, as every small and big investor is trying to make their way into the crypto world. However, several people still do not have an idea of what this cryptocurrency is.
Statistics reveal that there are over 81 million blockchain wallet users around the world. Globally speaking, these numbers could increase even more because of the great potential these cryptocurrencies have.
We are going to talk about everything there is to know about in the crypto industry. We will start with basics like what these currencies are and how many of these currencies are there. We will also discuss how people can buy and store these currencies.
What’s more, this piece has a short section for price prediction for cryptocurrencies.
What Are Cryptocurrencies?
Cryptocurrencies are digital payment systems that do not require a bank to verify transactions. It is a close system between peers, where users can send and receive payments to each other without third-party sources.
This allows users to exchange payments globally, and make profits out of them. The transactions made through these cryptocurrencies are recorded on public ledgers, which makes it easier for better security and protection.
How do Cryptocurrencies Work?
These digital currencies utilize a sophisticated system for payments that depends on a public ledger called a blockchain. This blockchain is a record of all the transactions made or received through these digital currencies. The backup data of these blockchain sources is highly secure and cannot be corrupted by users in any way.
Users need to create crypto units through complex mathematical calculations under a process called mining. However, other users can also buy these coins from brokers (more on this later). Owning cryptocurrency means you do not own anything physical.
Instead, you can move a unit in the blockchain to make payments to another person. Moreover, you do not need a third-party source for this payment either. The full applications of these blockchain currencies still require a lot of time to complete.
Experts suggest that the number of crypto users will increase shortly because it could be the primary source of monetary dealing soon.
How Many Cryptocurrencies Are There?
There are thousands of cryptocurrencies in the market. While the exact number of these digital currencies is still unknown, a study claims that there were around 1800 currencies back in 2018. This number has increased with the growing popularity of these digital currencies in recent years.
Their demand is so high that experts believe more currencies will join the market soon. While it is difficult to explain all the cryptocurrencies in the market. we will mention some of the top ones. We chose these currencies based on their popularity and valuation in the market.
Bitcoin
Bitcoin, developed by Satoshi Nakamoto back in 2009 is the leading cryptocurrency in the market. It is the most popular digital currency ever with only a few coins available in the market. People are trying their best to get their hands on Bitcoin because of its potential in the market for years to come. Bitcoin Price Today.
Ethereum
Ethereum or Ether (ETH) is the second most popular cryptocurrency you will find in the open market. It soars right next to Bitcoin in value and in popularity. It is best known for its volatility and extreme price range changes. Ethereum Price Today.
Ripple
Ripple became part of the crypto industry back in 2018. Although it is a relatively new coin, Ripple can be used to track different kinds of transactions. This means users can use it not just for cryptocurrency, but for other platforms too. This is because its creators have worked with many banking clients.
Additionally, non-Bitcoin currencies are collectively called the Alt-Coins to help differentiate them from the others in the industry.
How to Buy Cryptocurrencies?
The steps for buying cryptocurrencies are very simple if you break them down into sections. Therefore, we will talk about the best way to buy a cryptocurrency for your understanding.
Choose a platform
Investors need to choose a platform for purchasing their digital currencies before starting. You can choose between traditional brokers, and exchange platforms, depending on what you prefer. Both of these options have their pros and cons. For instance, the brokers may have a lesser transaction fee, but the crypto exchanges provide better security measures.
Fund Your Account
Buyers need to invest their money into their chosen platform. You need to make a wire transaction to the platform you choose. Remember, making crypto payments with credit cards is a bit risky considering several platforms do not support them.
However, there are other methods like AHC or wire transactions that fit well with these platforms. You should discuss the payment method availability with your source accordingly.
Place an Order
Once you complete the monetary transaction, it is time to request a cryptocurrency exchange. You should choose a currency you want to invest in, and choose how many you can afford.
Several brokers and crypto exchange platforms also have mobile-supported applications for users. These applications allow users to make transactions from anywhere, anytime.
While this is the method that most people use, there are a few other methods of making a crypto investment. These include the following:
- Bitcoin trusts: Invest in Bitcoin trusts with a regular brokerage account. This is a great option for retail investors who need exposure to crypto through stocks.
- Bitcoin mutual funds: Bitcoin ETFs and Bitcoin mutual funds are another great alternative to choose from
- Blockchain stocks or ETFs: Investors can invest their money in companies that work directly with crypto creation technology or mining.
Top Brokerage Firms:
Where to Buy Cryptocurrencies?
The first step potential buyers need to follow is to choose a platform to make the transactions. The following are the options buyers can choose from.
Traditional Brokers
Online brokers that buy and sell cryptocurrencies are the most common sources for buying digital currencies. These brokers can also help investors with other purchases like index funds, stocks, NFTs, etc.
Cryptocurrency Exchanges
Cryptocurrency exchanges are companies buying or selling options with storage, security, backup, and accessibility options for users.
There are various factors like the transaction fee, available security options, variety of currencies available to help determine the right exchange. The kind of crypto platform you choose depends on a wide variety of factors that you should consider.
For instance, users can choose between payment methods, transaction fees, security features, etc, while making a decision. We suggest carefully analyzing your options before making a move.
Top Cryptocurrency Exchanges:
How to Store Cryptocurrencies?
Investing in digital currencies is only half the work because owners need to think about storage options too. The most common storage areas for these currencies are an e-wallet. This includes physical backup or online storage spots for users.
These wallets have secured keys for access, which makes them a well-protected option for users. However, not all brokers or crypto exchange platforms provide these easy options for their customers. There are two primary storages that you can choose between for your digital currencies. These include the following:
Hot Wallet
Hot wallets include platforms that use online storage to store digital currencies on severs.
Cold Wallet
Cold wallets or hardware storage include electronic devices used to store digital currencies from investors.
The main difference between the two is their security. Generally speaking, the cold wallet is a more secure option for most people.
Price Predictions for Cryptocurrencies
Although the crypto market is highly volatile, we still have a few pointers on price prediction for cryptocurrency. Most experts suggest that Ethereum is a great investment area for people dealing in crypto. Its price could even soar as high as £8841 (or higher) if the market keeps progressing like this.
The other half of the experts believe that even though Bitcoin has faced fluctuations, volatility, and trend changes, it will bounce back. Various factors will contribute to this increased value, but some of these factors include the following:
- Decentralized Finance (DEFI)
- Non-Fungible Tokens (NFTs)
- Other Web 3 Applications
However, there is still no clear price prediction for cryptocurrency. Thus, we suggest investors keep an eye on market trends to make an informed decision.
Bottom Line
Cryptocurrency is one of the fastest-growing investment industries in the last decade. It comes with several storages and purchase options for investors globally. This makes digital currencies readily available for users around the world, and a promising investment area. We hope that this guide helps you with your crypto investment, and understand it better as a whole.
BWCEvent aspires to share balanced and credible details on cryptocurrency, finance, trading, and stocks. Yet, we refrain from giving financial suggestions, urging users to engage in personal research and meticulous verification.
