There are so many ways to buy cryptocurrency, especially with USD. It could be through exchanges, trusted vendors, peer-to-peer, or several other methods. In this post, I will focus on the best and most secure ways to buy cryptocurrency in USD.
First off, trading cryptocurrencies come with so many risks. It is advisable that you know all of these and have full knowledge about how the blockchain works before investing in any digital asset. If you are looking to buy Bitcoin, for example, you must know the risks involved before going in.
Once you are comfortable with the risks and can afford a potential loss, that might be the best time to invest in any crypto.
However, many people across the world wish to invest in cryptocurrencies but have no idea about how to buy them. Do you want to learn how to trade cryptocurrency in greenback? Here is the right place.
How do I buy cryptocurrency with USD?
Before you go ahead to invest in any cryptocurrency, kindly note that these assets are highly volatile, and price changes can literally make you lose your investment in the blink of an eye. You should only invest an amount into cryptocurrency you are prepared to lose.
If you are really interested in buying cryptocurrency, follow the simple procedure below;
Step 1: Choosing an Exchange
Investing in crypto begins with choosing an exchange to buy and sell your assets. Although some fintech companies already allow users to purchase cryptocurrencies, many banks still do not support the whole concept. For this reason, it is impossible to buy cryptocurrency through your bank.
To buy or sell any crypto, the first step is to find a reliable exchange. There are hundreds of crypto exchanges today, but only a few of them are trusted and reliable. They include Coinbase, Binance, Snappy Exchange, Gemini, Kraken, etc. These are platforms where you can buy and sell cryptocurrencies.
Step 2: Fund your account
Not to skip a step, but before you can fund your account, you have to create one first. When you find a cryptocurrency exchange that suits you, go ahead and create a user profile for yourself. You will only be able to buy a cryptocurrency when you have a profile on the exchange.
Although some exchanges do not need you to create profiles (decentralized exchanges), you need them for others (centralized exchanges). After creating an account, most exchanges will ask that you verify your information using a government-issued ID such as Driver’s License, Voter’s Card, etc.
In most cases, you should be able to fund your account after providing the necessary information. You will have to connect your bank account or a debit card to transfer USD into your exchange account. Please bear in mind that fees may apply, so you know exactly how much you buy or sell. Usually, bank transfers cost less than card payment options.
Go through the payment options and choose which is most convenient for you. Funding your account is not the last step to getting cryptocurrency — you also have to purchase the assets. Once you can fund the account, exchange it with the particular cryptocurrency you want.
Step 3: Place a buy order
Depending on the exchange, you will find the option to purchase cryptocurrency even before funding your account. I advise that you find this option before depositing to your exchange account. Remember that this process may differ depending on the exchange you use.
If you are using an exchange like Coinbase, you can easily enter the amount of cryptocurrency you want to buy in dollars and confirm the transaction. However, you have to take note of the current rate before confirming the transaction. If you wish to buy it at an exact rate, you must set a limit order.
Some cryptocurrency exchanges like Binance will allow you to set limit orders to the particular price you want to buy a cryptocurrency. Buying or selling at the current price is known as a market order while buying at a particular price is known as a limit order. Once the value of the cryptocurrency reaches that point, it will automatically be purchased.
Step 4: Store the purchased asset
After buying a cryptocurrency on an exchange, the asset is moved to your exchange wallet. You can either leave it there or transfer it to another wallet. I do not advise leaving your assets on an exchange for too long. I recommend you withdraw your assets immediately after making the purchase.
If you do not already own a private crypto wallet, then you need to get one for yourself. All you have to do is download a crypto wallet on Google Play or the App Store. After downloading the wallet, create a new wallet and ensure you store your seed phrase so you can get back into your wallet anytime.
If you have purchased a cryptocurrency like Bitcoin, go to the private wallet, copy your Bitcoin wallet address and enter it on the exchange. There will be an option to withdraw your cryptocurrency. Ensure you copy the specific wallet address for the right cryptocurrency, so you don’t lose your assets permanently.
3 Things to consider when choosing an exchange
Before you trust a cryptocurrency exchange with your funds, there are some things you need to consider first. Knowing about these will make it easier for you to choose the best exchange for you.
Of course, this is the most important thing, even when it comes to banking itself. A central institution like an FDIC-insured bank account does not back cryptocurrency investments. If your account gets compromised, you might lose all your assets permanently. This means you won’t have access to it anymore.
If you are okay with leaving your asset on your exchange account instead of withdrawing it to a personal crypto wallet, then you should go with a reputable exchange like Coinbase, Snappy Exchange, or Binance. These exchanges have strong protections against theft, with some insurance policies for users.
Cryptocurrency exchanges make their money from the fees they charge in trading digital assets. If you are buying or selling an asset on a cryptocurrency exchange, there will be a separate fee that will be deducted from your account. You should know how much an exchange charges before trading on them.
Of course, not all exchanges have all the cryptocurrencies in the world today. Even reputable and well-established exchanges like Coinbase and Binance do not have every cryptocurrency that has been launched. This is something you must consider before making that purchase.
As a result, you should check the exchange you want to trade on if the cryptocurrency you wish to buy is available. If it isn’t, then you might have to try another one. It would help if you kept trying until you found a reliable exchange with the asset you want to buy.
Before buying any cryptocurrency on any exchange, I advise that you do thorough research on the project. This is to ensure you know all about what you are putting your money into and are bold enough to take the risk. Cryptocurrency is full of risks, as I mentioned, and you must be careful taking it.
If you don’t wish to buy cryptocurrency on exchanges, don’t panic, there’s another way you can go about it. Peer-to-peer transactions are becoming widely accepted by the day, and you can also engage if you are okay with it. Worried about how to get started with peer-to-peer? Let me show you around.
Peer-to-peer involves a transaction between two people, which may/may not involve an escrow. To get started with peer-to-peer, find a trusted vendor to buy cryptocurrency from, and go on with the transaction. You might have to make a payment to the escrow before receiving your assets. Please ensure you are buying from a reliable party.