What is a Coin?
A coin is a type of cryptocurrency that is built over a blockchain developed to perform a specific task. For example, one of the most popular currencies Ethereum is a token or coin of a blockchain that’s created to execute smart contracts. Coins are usually denoted as three letter abbreviations; for example, BTC for Bitcoin, ETH for Ethereum, and so on.
Precautions Before You Buy Cryptocurrency
Well, first of all you need to ensure maximum security from your side. It’s a matter of money and you have to be cautious to keep your investment safe.
• If you are buying through an exchange, do your research and read reviews and traders’ feedback.
• Check out the features of the exchange before you buy; the most important being speed of transaction and fees.
• Make a unique email ID for registration and use strong passwords for both your email and when you’re registering on any platform. Don’t use same password.
• Use firewall and run an anti-virus scan on your devices before you trade.
• Always enable two-factor authentication for your email as well as cryptocurrency exchange account.
• You may also need a cryptocurrency wallet if you’re looking to purchase coins in large quantities and/or plan to trade for a long period of time. While the platforms and exchanges do provide you with a digital wallet, it’s more secure to transfer your cryptocurrency assets into a hardware wallet which is disconnected from all kinds of network. You can also use offline desktopwallets such as Exodus. Good hardware wallets include the Ledger Nano X and the Trezor One.
Buy Cryptocurrency through Exchanges
Cryptocurrency or virtual currency exchange is a marketplace where traders sell and buy crypto coins. Many exchanges today have built a strong reputation such as Coinbase and Coinmama but not all exchanges are like that. When you are looking to buy crypto on an exchange, you need to sign up on a website or an app and link your account or debit/credit card with your account. You have to go through a verification process and then you can buy cryptocurrency with the conventional one.
One of the most reputable exchanges is Coinbase, it’s the best way to purchase popular currencies such as BTC, ETH, LTC, and XRP. Especially for those traders who are new in this business. Registration can be a drag as you have to provide personal information including phone, address, and a copy of any government issued ID. Crypto exchanges are bound by law in some countries to vet each trader.
Once you have gone through the verification process, link your bank account or card to your exchange account. You can buy cryptocurrency with credit card but that’s comparatively expensive, so bank account is a better option. Always start small and then learn how to navigate through different phases. Just like any other type of trading, patience and vigilance are key.
There are a number of crypto exchanges offering different features and buying process can also be unique in terms of coins you can buy, payment methods, fees and other charges, and transaction duration.
Buy Bitcoin with Altcoins
ShapeShift is a protocol which enables you to purchase a coin with other coins. This way you can buy Ethereum with Bitcoin, Bitcoin with EOS, and so on. Altcoins is a term used to refer to the coins other than bitcoin. So, if you have altcoins, you can buy other cryptocurrencies saving quite a bit in the way of fees and charges. Many desktop wallets such as Exodus, feature built in ShapeShift system so you can purchase cryptocurrencies directly from your wallet.
Buy Bitcoin with LocalBitcoins.com
If you are looking to purchase bitcoins, then Local Bitcoins provides you with an easy and quick way to buy bitcoins in your country. On the website, you can buy bitcoins in 240+ countries in more than 7,500 cities. All you have to ensure is that you are dealing with a seller who has great reputation. If your gut feeling says no, listen to it.