You can buy a relatively new cryptocurrency using just a few clicks on various exchanges.
But do you want to? And if you do, how do you actually buy and store cryptocurrencies in 2020 — a decade after the first one, Bitcoin was invented.
This article will answer those questions and then, if you’re so inclined you can learn where to buy cryptocurrency.
Why Buy cryptocurrencies?
Supply and demand are driving crypto. Since the Bitcoin halving in early 2020, more media attention has been paid to Bitcoin and other cryptocurrencies.
This is because the Bitcoin halving cut the supply of new bitcoins in half. This leads to lower supply, which tends to push prices upwards and this could lead demand to grow in the years ahead — and more cryptocurrencies will follow.
Of course, speculation and investment are only one of the many reasons you might be looking to buy cryptocurrencies.
Another reason is utility — the usefulness of a cryptocurrency.
Gold is also more than speculation and hedging and investment. Gold can also be used to make jewelry, circuits, and other items.
Bitcoin cannot be used to physically do anything since it’s a digital cryptocurrency, but it is being used to secure DeFi loans. Combine this with the fact that other cryptocurrencies exist that have solid utility use cases — and you have a few more strong cases to buy cryptocurrencies this year and beyond.
Another few reasons still to buy Bitcoin and other cryptocurrencies is that unique properties they offer over standard currencies and investments.
1.Cryptocurrencies can be used to keep your financials private. If you use private coins then your transactions will remain known only to you.
2.Bitcoin is uncensorable. One aspect of bitcoin that other investments don’t have is that no one can censor bitcoin. Like gold, bitcoins are not controlled by a central entity. A government or bank can no more arrest or sanction the CEO of Bitcoin (there is none) than they can arrest or sanction the CEO of gold.
3.Bitcoin and other cryptos are unconfescatable. Your gold can be taken away from you by force. Your bitcoin, however, if you have it memorized or on a multi-signature wallet, cannot be taken from you.
With all these factors in mind, let’s take a look at the next step.
How to Buy cryptocurrencies.
There are plenty of options for buying cryptocurrencies. Some are easier than others but at the expense of things like privacy or fees. And take note, if privacy is important to you in your financial transactions, then be aware that governments are paying big money for tools that track users on public blockchains.
Also keep in mind that you don’t need to buy a whole Bitcoin — which costs several thousands of dollars per coin right now.
Bitcoin is divisible up to 8 decimal places. So you could buy $10 worth or, like one CNN Business writer, you could buy $250 worth and see what you can do with it. Either way, try not to buy more than you can afford to lose, that way you won’t feel stressed or anxious.
Now then, here’s a few ways:
1.One option is purchasing with a credit card. You can often do this if you pass KYC requirements which need you to verify your identity.
2.You can buy it in person by finding someone willing to sell. Try to meet in public places and not buy so much that you carry a worrisome amount of cash.
3.The easiest way is to buy from an exchange. There are many exchanges around the world now giving access to almost everyone on the planet. Do some research about which one is the safest with the lowest fees.
There are other options but they may be too obscure, advanced, or simply non-existent in your area. The options above are the best and the most common.
After you’ve researched the best option for you to buy cryptocurrencies, make sure you have a way of keeping them safe. There are pros and cons to all the methods. Here are the top ones:
1.Hardware wallet. Buy a hardware wallet and store your crypto there. This will keep your funds safe offline. It’s a bit inconvenient, but it’s one of the safer options.
2.Keep in on the exchange you bought it from. This is the most convenient option but at the same time one of the riskiest. Big exchanges like Coinbase make supreme efforts to keep your crypto safe while it’s in their custody. But smaller exchanges could get hacked or run away with your money.
3.A paper wallet. By far the safest option but also the most inconvenient. If you put your funds on a paper wallet you can store it in a bank, vault, or elsewhere. But you won’t be able to use it so easily for purchases or sending.
Now that you’ve read the article, it’s time for more digging! The best tool you can have in the cryptocurrency space is knowledge. So keep learning!