Cryptocurrencies are the latest craze in the finance world, with Bitcoin (BTC) and Ethereum (ETH) dominating the space. As the number of cryptocurrencies in the market continues to expand, investors have more options than ever before to exchange their hard-earned cash for decentralized digital money. But how do you go about trading your favourite cryptocurrency? Realxposure has got you covered with this.
How do I buy cryptocurrency?
A crypto exchange is a platform that brings buyers and sellers together in order to trade cryptocurrency. Most exchanges support multiple currencies ranging from highly popular ones in the crypto community that you may not already know about, like Cardano, Ripple, and Tether, to Bitcoin, the oldest, best known, and most valuable cryptocurrency.
One can buy or sell cryptocurrencies through cryptocurrency exchanges. There are various online exchanges which often work similar to a stockbroker, giving you the tools to buy and sell digital currencies like Bitcoin, Ethereum, and Dogecoin. The crypto exchanges make it easy to buy and sell the currencies you want with low fees and strong security features. While these companies’ standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, they also offer user-friendly easy purchase options.
You open an account at any of these exchanges, deposit your funds, and then you can “exchange” your USD or fiat currency for the cryptocurrency of your choosing. Some cryptocurrency only have specific pairs they trade with, so depending on what you want to buy, you may need to buy something like Bitcoin, and then exchange the Bitcoin for another token.
How much money do you need to get started?
You can get started with most of these exchanges with as little as $5.
What’s the difference between a crypto exchange and a crypto wallet?
A wallet is designed for safe storage of your cryptocurrency. An exchange is designed to allow you to buy and sell cryptocurrency easily and quickly. A wallet will hold your private keys security, while when you use an exchange, you provide the exchange to your private keys. The exchange then acts as your custodian.
What online brokers offer cryptocurrencies?
Many people believe that cryptocurrencies are the future of finance. When you’re ready to leap into crypto, choosing a broker to trade or invest in cryptocurrencies is one of the most important steps to your success in the crypto market.
There are plenty of factors that will influence your decision: security measures, ease of use, trading fees and the number of coins available for trading all play a part in helping you determine the top crypto exchange for you.
To help you find the cryptocurrency trading platform that meets your needs, here are few options to choose from that will suit a variety of cryptocurrency investors:
|Crypto Exchanges||Available for|
|1. Coinbase||Access to buy and sell nearly 100 cryptocurrencies.|
|2. Binance||Access to buy and sell nearly 60 cryptocurrencies.|
|3. Robinhood||Seven cryptocurrencies including bitcoin, bitcoin cash and Ethereum.|
|4. Gemini||Ability to buy and sell more than 50 cryptocurrencies.|
|5. Kraken||Offers more than 90 cryptocurrencies.|
|6. eToro||Trading platform with access to 17 cryptocurrencies.|
|7. TradeStation||Offers trading for five cryptocurrencies, including bitcoin, bitcoin cash and ethereum.|
|8. Webull||Offers 10 cryptocurrencies for trading, including bitcoin, bitcoin cash, ethereum and litecoin.|
|9. SoFi Active Investing||Offers more than 20 cryptocurrencies for trading including bitcoin, ethereum and litecoin.|
Digital currency and the blockchain appear to be the future of finance. Despite their current typical volatility and lack of widespread acceptance as a payment method, cryptocurrencies seem destined to become increasingly used for online payments. They could therefore make an interesting long-term investment, especially if you have a strong appetite for risk.