Investing in cryptocurrency always seems difficult, especially for first-timers. However, it becomes easier and straightforward once the process has been broken down into steps or a Guide to Purchasing Cryptocurrency. Before investing in cryptocurrency, you need a secure platform to store it. In the crypto world, this secure platform is a crypto wallet and they come in different forms.
Types of Crypto Wallets
Here are the five different types of crypto wallets and how they function.
Desktop Wallets
Desktop wallets are installed on the crypto trader’s system, providing them control over any funds sent to that wallet. There are two types of desktop wallets; thick and thin.
Mobile Wallets
The primary advantage of using a mobile wallet is that the crypto trader’s funds are on hand every time. As a result, it makes it a suitable means of paying for products by scanning the QR code.
Online Wallets
When using a web-based wallet, the crypto trader’s private keys are safeguarded on an online server that is linked to the internet and controlled by another individual. This allows you to access your funds from anywhere in the world and from any device.
Hardware Wallets
These are exclusive portable devices that store your private keys offline. Hardware wallets come in different forms, but they all allow you to carry any amount of crypto funds in your pocket.
Paper Wallets
Paper wallets function as two individual pieces of information which are expressed in characters generated via a designated service. The first piece of information is your wallet address used to receive cryptocurrency, while the second is the private key which is used to spend the stored crypto.
Buying Cryptocurrency Here is Guide to Purchasing Cryptocurrency
There are a number of channels to cryptocurrency ownership, allowing individuals to buy crypto in the way that suits them best. However, for beginners, follow these four steps to invest in cryptocurrency.
Step 1: Select a Crypto Exchange
Every new crypto trader is usually faced with the problem of getting the right crypto exchange to begin their journey. There are several factors to consider, with the most essential being its location. Exchanges in different parts of the world fall under distinct government jurisdictions, requiring several KYC and anti-money laundering operations, depending on the region involved. A crypto exchange is a platform where buyers and sellers come to trade their cryptocurrencies.
Step 2: Choose a Payment Option
Different exchanges offer different payment options. For instance, most major exchanges allow crypto traders to link their bank accounts for wire transfers, as well as their credit cards or debit cards, while others allow PayPal payments. When you initially create your account and select your payment method, you have to also authenticate your identity regardless of the payment option you chose.
Step 3: Order Your Crypto
After verifying your identity and depositing money into your crypto exchange, you can now start purchasing crypto. If you don’t wish to invest in Bitcoin, you can try purchasing Ethereum which has evolved to become a great Bitcoin alternative. The process for purchasing crypto varies for different crypto exchanges, with many platforms allowing you to sell or purchase crypto by pressing the ‘Sell’ or ‘Acquire’ buttons.
Step 4: Store Your Crypto
While larger exchanges are trying to improve their safety, the crypto industry is still plagued by fraud and hacking. This is why your research on which crypto wallet to use is essential. To avoid losing all your crypto investments, it is recommended you use a crypto wallet.
Just like any other investment, crypto investment requires you to analyze your investment objectives and financial status before making any move.
