If you have ever wondered how it feels to be your own bank, buying and trading cryptocurrencies is a great way to do just that. With the growth of cryptocurrency worldwide, buying Bitcoin, Ethereum or Litecoin, among other alternative coins in the US, has never been easier.
Cryptocurrencies give you the power to become your own bank and store your money in a digital wallet that you control. In an age of increasing inflation and a dollar removed from the gold standard, buying cryptocurrencies can be an attractive (if volatile) way to store value.
If you’re located in the US and want to buy cryptocurrency, there are several ways to do it. Cryptocurrency exchanges are a popular way for those interested in purchasing coins quickly and with relative ease. RockWallet is a great self-custody solution and Coinbase is a major exchange in the US and is a great place to start.
A Unique Multi-Asset Wallet With Exchange Utility
Another popular way to buy cryptocurrency in the US is through peer-to-peer (P2P) marketplaces like LocalBitcoins. When you buy through these sites, you can purchase coins directly from other users who are willing to sell them. This is a great way to get involved in the cryptocurrency community as well as meet people interested in similar subjects.
However, before we get into the details of what platform is best for you, we recommend you take a few moments to understand the basics of cryptocurrencies ranging from advantages to some risks to beware of.
Why Buy Crypto in the First Place?
One of the primary reasons people choose to buy cryptocurrency is the increased security it offers. Using cryptocurrency, users can securely store and transfer their funds without worrying about the potential for fraud or identity theft that can come with traditional banking methods.
Additionally, since cryptocurrencies exist on a decentralized network, they are not subject to government regulations or fees associated with traditional banking methods. This makes them an excellent option for those who want to avoid paying high fees or harsh government regulations.
Finally, cryptocurrencies are fast and efficient. Transactions are completed quickly and without the need for go-betweens like banks or money transmitters. This is important if you want to make a quick transaction or send money internationally.
Steps for Buying Cryptocurrency
Purchasing cryptocurrency in the US is quite simple, but it requires a few key steps. Firstly, an individual must create an account with one of the top crypto exchange platforms, such as Coinbase.
Once the account has been established, the buyer can transfer funds from a bank account or a credit/debit card into their exchange wallet.
With money on the user’s exchange account, the crypto buyer can then begin to browse and select which type of coin/token they wish to purchase.
Different coins/tokens have different values, so you must take time to find the one that best suits your needs and budget. Then, once a decision has been made, place an order and wait for your crypto assets to arrive at your exchange wallet.
Transaction Fees and Other Charges
It is important to note that there are usually transaction fees associated with buying and selling cryptocurrency. These fees vary from exchange to exchange, so it’s important to shop around and find one that offers the lowest fees. In most cases, you will be required to pay a transaction fee in the range of 0.5% to 3%.
You may also be charged other fees like withdrawal fees, but these are usually minimal and much lower than what you’d pay with traditional banking methods.
Also, make sure you read any exchange’s terms and conditions before buying or selling cryptocurrency on their platform, as some exchanges come with hidden fees.
Some exchanges offer spread-based pricing instead of a flat fee. This means that you’ll be charged a percentage of the total purchase amount.
Becoming a crypto native doesn’t stop at buying and trading but also includes safekeeping.
When storing your crypto assets, choosing the right storage option is important. The two main options are hot wallets and cold wallets.
Hot wallets are connected to the internet and can be used for active trading, while cold wallets store cryptocurrencies offline and provide extra security for long-term storage.
The crypto space is full of all sorts of malicious actors looking to steal your hard-earned money. Therefore, you must take the necessary steps to protect yourself and your investments.
Make sure to use strong, unique passwords for all of your accounts and never share them with anyone. Also, remember to enable two-factor authentication on all of your accounts. This will add an extra layer of protection. It would help if you used apps such as Authy and Google Authenticator, as they don’t need phone service or a data connection to generate secure authentication codes.
Finally, double-check that you are on the correct website or network when sending and receiving coins or trading crypto. Also, keep your private keys safe and backed up.
Cryptocurrencies can be an excellent option for those looking to enter the digital asset space. Still, it is vital to research and understand the risks before investing or trading.
Apart from cyber attacks on your wallet or making the mistake of sending the wrong coins to the incorrect address, volatility is another risk you should be aware of.
The best way to manage volatility is to use stablecoins, which are coins pegged to the US dollar and other fiat currencies. This way, you can store your crypto assets without worrying about their value decreasing over time.
Buying cryptocurrency in the US is a relatively simple process that requires an account with one of the leading crypto exchanges, funds for transaction fees, and secure storage options.
Investing in cryptocurrencies can be a thrilling and rewarding experience, but it is crucial to ensure that your crypto assets are always secure. To do this, you should use strong and unique passwords for all your accounts and enable two-factor authentication with apps like Authy and Google Authenticator.
Double-check that you are on the correct website or network when sending and receiving coins or trading crypto. Private keys should also be kept safe and backed up in case of theft or loss.