How to Buy Crypto Coins? In Simple Words About Complex Issues

 

The first mention of cryptocurrencies appeared in October 2008, it was then that the unknown creator of Bitcoin, Satoshi Nakamoto, published his legendary article. Three months later, namely in January 2009, the first block was mined in the Bitcoin network, marking the beginning of the era of decentralized finance.

Among the most popular cryptocurrencies are Bitcoin, Ethereum, Binance Coin, Ripple (XRP). The crypto coin market is unique because there is no such financial instrument that would offer high incomes in the shortest terms. All this is achieved due to increased volatility. Look at any large cryptocurrency website – some coins can change their rate by tens or even hundreds of percent within one trading day. This means that in the cryptocurrency market, you can both earn quickly and lose everything shortly. Therefore, in this article, we will talk about how to buy crypto coins correctly and how to protect yourself from negative consequences as much as possible.

Should a Novice Trader Buy the Most Popular Cryptocurrencies?

So, Bitcoin is the irreplaceable and undisputed leader in the market. However, its dominance has also begun to decline lately. As of the end of December 2022, it occupies only 39.9% of the total market, and another popular cryptocurrency, Ethereum, literally breathes down its back and already occupies 18.4% of the total market capitalization.

Bitcoin, the leader in market capitalization, has experienced ups and downs more than once. In May 2021, the coin cost $58,803, and after 2 months it lost half of its value — its rate was $29,807. Another rise occurred in the autumn of the same year — in November, the Bitcoin rate reached its historical maximum of $67,566.

The unstable situation in the world, not least associated with russia’s military aggression against Ukraine, inevitably pushed the cryptocurrency market down. In July 2022, the rate of all altcoins collapsed. The most notable was the fall of Bitcoin, and now its rate is only $16,218 per coin. Despite such instability, interest in cryptocurrencies does not fade away. On the contrary, experienced investors and traders say that now is the best time to purchase cryptocurrency. If you are a novice and poorly versed in financial instruments, then start your acquaintance with digital assets with the most traded cryptocurrencies.

Web 3.0 is The Future: Are there Chances for Crypto?

Experts have been discussing the imminent transition to the next version of the Internet space, called Web 3.0, for several years now. Its difference from the current one, Web 2.0, is total decentralization. The best example of this approach now is blockchain technology and cryptocurrencies based on it. IT specialists suggest that, in the near future, one user account will serve as an electronic wallet, online banking, and personal identifier in the virtual space.

As for forecasts, there are some opinions. According to the optimistic scenario, Bitcoin will get out of the abyss and rise in price to $100 thousand and more.

Many analysts argue despite the bearish trend lasting over the past few months, Bitcoin is still moving to new heights. They believe in the near future, it will be possible to purchase crypto for $100,000. Other analysts claim the current collapse is not the limit, and one should be wary of depreciation to $10,000. The truth is that no one knows the future.

Where to Buy Crypto in 2023?

Everything goes to the fact that in many countries cryptocurrency will soon become an official investment. So far, the only country that has recognized Bitcoin at the legislative level is El Salvador. A fairly loyal policy towards digital money is pursued by Denmark, Germany, France, Canada, and Iceland, as well as several other states.

Novice users are wondering, where to buy crypto? Today, you can buy digital coins with fiat money and swap them back on several types of resources.

Most often, people turn to crypto platforms and P2P. Both of these options are intermediaries connecting buyers and sellers. Their difference lies in the model of transactions. On online exchanges, this happens automatically. And on P2P platforms, users must communicate and agree on purchasing and selling crypto. Regulated centralized services are most common, they help to buy and sell crypto and convert currencies quickly, safely, and profitably.

What Does Crypto Exchange Service Mean?

A regulated cryptocurrency exchange resembles a security platform or regular currency exchange. It is a place for buying and selling digital coins. Here, cryptocurrency can be safely stored, converted, and cashed out to personal wallets.

Any large cryptocurrency platform requires the clients’ personal data (passport, photo, etc.). Without providing this information, you can only trade cryptocurrencies in a limited format. Therefore, all transactions on such platforms are maximally protected from fraudsters, but users cannot remain anonymous.

For a standard purchase of cryptocurrency, you need to create an application or order and indicate the sum you are ready to spend for purchasing crypto, for example, Ethereum. Orders from placed in the order book, where matches are searched for by amounts. If the system finds the right buy order that matches the sell order, they are removed from the order book and turned into a closed trade. The buyer receives the claimed number of assets in the wallet, and the seller receives money.

Sometimes submitted orders are redeemed or partially sold after several trades. It often happens due to a discrepancy in the volume of coins sold or purchased for a specific amount. All these operations occur automatically.

Trusted Crypto Exchanges

There are many different trading exchanges on the Internet, but only a few are safe. Below we will leave a few popular sites, but if you wish, feel free to pick other options.

• Binance

This platform is well-known around the world, for it is the biggest. It operates in 160 different currencies and has a built-in P2P platform and an NFT store.

• WhiteBIT

The WhiteBIT platform is the biggest service for trading crypto in Europe. Despite the fact that it is pretty young, it boasts two million registered clients and a wide range of digital assets presented for trading. Among other functions, smart staking is available – a deposit in cryptocurrency for which the user receives interest.

• Huobi

Like Binance, the Huobi cryptocurrency exchange is rich in tutorials for beginners, as well as helpful tutorials and educational content. In addition to trading, Huobi has its own P2P platform, margin, and deposits like WhiteBIT.

Other Options for Buying Most Traded Cryptocurrencies

Here are some other ways to become the owner of crypto:

• Cryptomats

Residents of large cities have the opportunity to buy crypto in special terminals – cryptomats. So if you have a specific terminal in your city, you can search for the needed asset and purchase it with cash. Outwardly, it looks like bank terminals. The purchase scheme looks alike- select the desired cryptocurrency, insert paper money into a special slot and receive digital money in your virtual wallet.

• Online exchangers

Such websites have the simplest design where users can give electronic fiat money and receive digital funds in return. The operation uses bank cards and resembles a regular currency conversion. Such services are suitable for one-time purchases or occasional cryptocurrency conversions. It is worth highlighting such well-known services as Coin24 and Changelly.

• Offline exchangers

Visually, they resemble the usual money exchangers. These are small premises with one or more employees. Here users pay paper or electronic money and get the necessary digital coins in return, which will arrive in their wallets.

• Middlemen

Perhaps the most unreliable option for buying crypto is to work with an intermediary. It is a real person who purchases the necessary cryptocurrency in his wallet at your request and for your money. Then he transfers it to your wallet and keeps the interest for himself. Finding a trusted person who will not deceive and  disappear once the operation is done is crucial. The human factor plays the main role in the reliability of this option.

Conclusion

With all that said, we can conclude that there are many different options to become an owner of digital assets and sell them. The most unreliable is working with intermediaries, and the most trusted way is to register on a regulated crypto platform. The reason is that by using such reliable services, you will address its customer support if you face troubles. Also, if there are some problems with currency delivery, your rights are protected, for you are an official client.

On the part of regulated platforms, they do their best to ensure robust security for their clients and implement complex mechanisms to protect against hackers. Centralized platforms regularly undergo audits to comply with all the laws and requirements. Clients additionally protect their accounts by installing a two-factor authentication. Large exchanges with regulation have much more trading tools to offer, along with the variety of traded pairs and one essential element required by most traders – the opportunity to convert fiat assets with crypto and cash out real money to bank cards.

There are some time-tested sites on the Internet that deserve your attention and comply with all the regulator’s requirements. The top three are definitely Binance, WhiteBIT, and Huobi. Look for their websites and reviews on the Internet.