How to Buy Cryptocurrency Stock: An Ultimate Guide
It can be difficult to figure out how to buy cryptocurrency stock if you are new to the crypto world. Maybe it gets confusing initially, but buying cryptocurrency stock is pretty simple. Investing in cryptocurrency is easy if you follow these few basic guidelines.
However, it would be best to remember that the crypto world is completely speculative, so all your money is at risk. It is possible to lose whether some or all of your money at once.
How To Buy Cryptocurrency Stock?
Here is how to buy cryptocurrency stock with an outline to help you. But before making your final purchase make sure to do specific research first.
1. Choose a Brokerage Or Cryptocurrency Exchange:
If you are interested in buying cryptocurrency stock, choose a platform first. Generally, there are two platforms, brokerage and crypto exchange, where you can buy or even sell your cryptocurrency stock.
Traditional Brokerage:
Many brokers tell you different ways to sell or buy cryptocurrency stocks. You can have fewer trading features on this platform, but you can also have lower trading costs.
Cryptocurrency Exchanges:
Various crypto exchanges exist now that offer a variety of features like cryptocurrency, wallet storage, interest-bearing accounts, and much more. Apart from that, different crypto exchanges have different policies, so some may charge asset-based fees.
In comparing both platforms, you should consider a few things it supports cryptocurrency, fees, storage, security features, educational resources, and withdrawal options.
2. Fund Your Account To Begin Trading:
The next step you will do after choosing between an online broker and a crypto exchange is to fund your account before starting to trade. Although what you will need to buy cryptocurrency stock depends on a different crypto exchange, some will let you buy stock using US dollars or euros. In this case, you can easily use your debit or credit card to purchase.
However, many experts consider buying cryptocurrency stock with a credit card risky. Moreover, some the exchanges like Coinbase don’t support card purchases. And also, some credit card companies don’t allow you to use your card to purchase cryptocurrency stock.
Another option to make cryptocurrency stock purchase is using ACH or more transfers. But there is also a disadvantage: accepting payments takes a long time to take deposits and withdrawals.
3. It’s Time To Place An Order:
Usually, it is the easiest step because many exchange websites or phone apps of any broker will let you place your order with a single click. To buy cryptocurrency stock, click on the “buy” button, choose the type of order, and enter the amount of cryptocurrency stock you will buy. Then confirm your order.
This was about placing your order to buy cryptocurrency stock, but now it’s time to make a transaction. Always remember the type of order you selected will affect the price of your order.
4. Selecting Storage Method For Cryptocurrency Stock:
To protect your cryptocurrency stock from scammers and hackers, store it in a safe place after buying it. This is where you will need crypto wallets. These wallets are physical devices or online software where you can safely store all your cryptocurrency stock with a private key.
Some wallets offer built-in wallet service to transfer all your cryptocurrency stock from the platform directly. But not all brokers or cryptocurrency exchanges will allow you to transfer your crypto stock directly to your wallet.
There are two custody options for choosing a digital wallet:
Hot Wallet Storage:
This wallet will use online software and protect your digital assets with a private key.
Cold Wallet Storage:
These wallets are also called hardware wallets, and they are offline electronic devices protecting your digital assets with a private key.
Things To Consider Before Buying Cryptocurrency Stock:
When you finally know how to buy cryptocurrency stock, it’s time to consider things that can make your crypto purchase safe. These practices will surely make you an expert in the crypto world.
- Before investing, you should research and scrutinize all digital assets. Typically you have to learn the history of the digital asset you will buy and know who is behind that asset. This will let you know who is profiting from you and whether it is a risk to buy this digital asset or not.
- Find a broker who is trustable, transparent, and safe to deal with. This will let you choose a broker who will keep you out of a compromising position, help you execute your trade, and keep your investment safe and secure.
- One thing you should always remember as a crypto trader is always spending what you can afford to lose. Never spent too much with leaving nothing behind. This is specially said for beginners.
- As a beginner or an expert in crypto trading, you should always trust your guts. Doing your research all by yourself is far better than trusting anyone else.
Can You Use A Credit Card To Buy Cryptocurrency Stock?
Some of the brokers let you buy cryptocurrency using your credit card. But using a credit card to buy cryptocurrency stock is also a bit risky. If you pay for your cryptocurrency stock using your credit card, you should also pay an advance fee. Sometimes, these fees are as high as 5% of your cryptocurrency stock. Another disadvantage is that you will be subject to major interest rates if you do not pay your bill.
Both disadvantages decide that buying cryptocurrency stock using your credit card is risky and expensive. That is why depositing cash directly from your bank account, or debit card is a safer and more money-saving option.
Conclusion:
Now you have learned how to buy cryptocurrency stock and what to consider while trading crypto. Hopefully, your trade will be safer and more secure. Wasn’t it that difficult, right? All you need is a bit of cash good trading platform, and you are good to go. But always remember never put what you can’t afford to lose. Have a safe trading journey.