How to Buy Cryptocurrencies?

So you want to delve into the interesting world of cryptocurrency, but you're not quite sure how to do it?

Do you live in the United States and hear your friends, co-workers, the news, and many other people talk about Bitcoin, Ethereum, and Dogecoin, but don't know how to start investing in these currencies?

Well, don't worry, in this article I will teach you how to buy cryptocurrencies in the USA.

1.How to buy cryptocurrencies in the USA?

If you are new to the world of cryptocurrencies, learning how to buy these digital assets can be confusing. Fortunately, and at least when it comes to the most common cryptocurrencies, this process is quite simple to learn. The process of how to buy cryptocurrencies can be summarized in these 4 steps:
  1. Choosing a broker or cryptocurrency exchange ( Crypto Exchange )
  2. Verify your identity ( KYC )
  3. Buy cryptocurrencies
  4. Store your cryptocurrencies

2.Do Your Own Research (DYOR)

Before delving into the four steps mentioned above, I would like to recommend the following. When it comes to buying cryptocurrency, well really, when it comes to buying any asset, I recommend doing your own research and analysis before making any investment.

In the world of cryptocurrencies there is a term that is used a lot, and it says in English: “ Do Your Own Research ” or DYOR . This term translates to "Do your own research." That is, it is important to use the information available on the internet to educate yourself well about the assets you plan to buy. Do not invest your money in any cryptocurrency simply on the recommendation of a friend and/or family member.

That said, let's continue with the guide on how to buy cryptocurrencies in the United States.

3.Choose a currency exchange

The most convenient (and profitable) way to acquire cryptocurrency is through a crypto exchange . A cryptocurrency exchange is a platform and business that allows its clients to exchange cryptocurrencies for other assets, such as conventional money or other digital currencies.

You can think of coin exchanges as the of cryptocurrency. That is, these are a place (market) where you can buy cryptocurrencies using your bank account and/or credit card.

Some of the best-known cryptocurrency exchanges in the US are Coinbase , Gemini, and Robinhood .

Personally, I prefer to use Coinbase and Robinhood to buy my cryptocurrencies, but the reality is that the 3 companies mentioned are quite good and very similar. Of course there will be some difference in the deposit and withdrawal processes, fees, and transaction speeds, but if you are just getting started in the world of crypto you cannot choose badly with one of these companies.

4.Verify your identity (KYC)

In the crypto world there is a term known as KYC which means “ Know Your Customer ”. This refers to the obligation of a financial institution to perform certain identity and background checks on its customers before allowing them to use its product or platform.

While it may sound like a complex process, the reality is that it is quite simple. Before buying any cryptocurrency, the exchange you are using will ask you to verify your identity. This can be done using a driver's license, passport, or some other legal identification.

Similar to when you open a bank account, you will only have to do this process once. KYC is nothing to worry about, it is simply a government-required process that helps prevent illegal use of cryptocurrencies .

5.Buy the cryptocurrencies

This process can vary a bit depending on the exchange you are using. However, any of the best-known crypto exchanges in the US will have a fairly simple interface to understand and use to make your purchase.

Most likely, the platform you use will first ask you to fund your account using a bank account and/or credit card. That is, the platform will ask you to deposit the amount of money with which you want to buy cryptocurrencies. The good thing about this is that many of these platforms do not have a "minimum" investment, and you can start buying cryptocurrencies with $10, $5 or even just $1.

Once you have funded your exchange account, you will be able to buy Bitcoin or any other cryptocurrency available on the exchange immediately and at the current rate of the asset. As I have mentioned before, buying cryptocurrency on an exchange is generally a very easy process.

6.Store your cryptocurrencies

It is important to mention that there are different ways to store your cryptocurrencies. The different storage methods in the world of crypto are often the subject of debate. Many prefer to move their cryptocurrencies from the exchanges where they were purchased to a hardware wallet for added security.

In another post I will explain in more detail about the different types of storage for cryptocurrencies. However, if you are just starting to buy your first coins, you don't need to worry about storing them, and you can leave them on the coin exchange where you bought them.

Also, if you want to sell your coins or exchange them for another in the near future, it will be easier to do this by already having your cryptocurrencies on the exchange .

Conclution: How to Buy Cryptocurrencies?

I congratulate you for having decided to learn more about cryptocurrencies and how to acquire them. The world of crypto can be quite complex, but it can also be quite rewarding. I believe that Blockchain technology and cryptocurrencies are here to stay. I invite you to continue learning with me more about cryptocurrencies and to read some of our other posts on the subject.

Disclaimer: The information and materials presented herein are intended to provide general information and guidance on the topic discussed only and should not be taken as financial advice(s). This information is not a recommendation to buy or sell certain assets. The information in this article is correct at the time of writing, but is subject to change. Some of the statements in this article are based on opinion. Always do your own research.

    Font Size
    lines height