The purchase of cryptocurrency in different ways. How to buy it economically?
Want to buy some cryptocoins?
"Where, how, and what cryptocurrency to buy?" is the question you are most likely asking yourself right now as more and more people talk about Bitcoin and its value rises. You want to «eat your piece of the crypto pie» but have no idea where to start?
"Cryptopie"
In this article, you’ll learn how to buy Bitcoin, Ripple, Ethereum, Nem, or any other cryptocurrency for that matter, as quickly and economically as possible.
Content:
The rise of the crypto industry
How do cryptocurrencies work?
Where to buy cryptocurrency?
What to do with cryptocurrency after purchase?
Why should I buy cryptocurrency?
The rise of the crypto industry
Before you start buying cryptocurrency, you need to learn when and how it came into being and what kind of future is ahead of it.
The starting point of all cryptocurrencies is believed to be January 9, 2009. On that day, someone named Satoshi Nakamoto launched Bitcoin 0.1. In December 2009, ver. 0.2 came out, and in the summer of 2010—ver. 0.3. In the end of 2010, Satoshi released ver. 0.3.9 and left the project for good, but it continued to grow with the help of avid crypto enthusiasts.
Not every single idea could be implemented in the Bitcoin project, which was the reason why people started leaving—to create their own, their own cryptocurrencies. This is when the crypto industry started to grow exponentially.
Differences in opinions lead to the emergence of new projects
Cryptocurrency is gradually becoming a part of people’s everyday lives across the globe: in 2017, Bitcoins are accepted as a payment method in some stores, restaurants and cafés, “the new money” is a hot topic on radio, tv, and in newspapers. The price of one coin is headed for 3,000 USD, although in the very beginning, 1 cent could buy 10,000 bitcoins.
BTC/USD rate all-time chart
One fact needs to be mentioned: there are 750 cryptocurrencies in the world right now. This many have sprung up in just 8 years!
It is impossible to pinpoint what the future holds for this innovative money, but most people will surely say that «cryptocurrency is the currency of the future». But it is not that simple. Not all of the 750 existing cryptocoins will make it, and the values of those who do, can both suddenly skyrocket or plummet. On the flipside, there are no indicators pointing to an imminent fall of cryptocurrencies. Such well-established cryptocoins as Bitcoin, Litecoin, Dogecoin, Ethereum, Ripple, are only rising in price, and that makes them really attractive from an investment standpoint.
How do cryptocurrencies work?
When we hear the word «cryptocurrency», Bitcoin comes to mind immediately. This is why we will use Bitcoin as an example to describe the way all cryptocurrencies work.
A bitcoin wallet is a special application that is installed on a computer or a smartphone. The wallet generates bitcoin addresses, that transactions are sent to and from. It has a publicly displayed name and a secret key. Users can create an unlimited number of bitcoin wallets. In this instance, Bitcoin is like E-mail.
Bitcoin wallet
The heart of Bitcoin is in its blockchain. The blockchain is a chain of blocks and a public collective registry where all confirmed bitcoin transactions in the world are registered and where all user balance information is stored. Cryptography enforces the integrity and chronological order of the blockchain.
A single instance of transferring funds from one wallet to another is called a transaction, and every single transaction is publicly visible in the blockchain. During the processing of a transaction, a secret key gets involved—it acts on behalf of the wallet’s owner. The key provides mathematical proof of the transaction’s authenticity and prevents manipulations after the transaction is sent into the network.
Chain of blocks
In order to confirm transactions and embed them into the blockchain, the process of mining is employed. The process assures transactions’ chronology within the chain as well as the network’s neutrality, it brings thousands of computers into harmony. Transactions are confirmed after their inclusion into a block and a network check. Mining eliminates the possibility of alterations of previous blocks and basic addition of blocks driven by anyone. As the result, nobody can manipulate the blockchain in their interests. Mining participants get some amount of cryptocurrency as a reward.
Where to buy cryptocurrency?
There are 3 main ways of buying cryptocurrency (not including such extraordinary ones as bitcoin ATMs or payment terminals).
Bitcoin ATM
You can buy cryptocurrency by using the good ol’ natural economy practices—find someone who’s selling bitcoins, litecoins, etc. on the internet, it is not difficult in today’s world. The easiest route is to register an account on an appropriate forum, e.g. Bitcoin Talk, and express your willingness to buy cryptocurrency.
The drawback of this method is security. Entrusting an internet stranger with your money is risky, for this reason there are guarantors on such forums. They make sure that both parties get what they expect. But of course, a guarantor will help for a fee.
Buying cryptocurrency on a forum
A cryptocurrency exchange will suit those who like stock trading and understand the entire process. You open an account with an exchange and replenish it, then create an order to buy/sell a certain amount of cryptocurrency at a certain price. In such a case, the cryptocurrency exchange rate would be the negotiated price. An account on an exchange can be topped up with special codes, for example BTC-e Codes.
The drawbacks of exchanges are sporadic withdrawal delays, technical glitches, inability to access accounts, and cyber attacks.
Cryptocurrency exchange EXMO
An easier, faster, and safer way of buying currency is electronic currency exchangers. In order to buy it with their help, all you need to do is specify your wallet number and transfer the required amount in the source currency to the exchanger’s wallet. Most exchangers conduct operations in automatic mode, this is why funds are usually credited in a couple of minutes.
Electronic currency exhanger F1EX
But not all exchangers are to be trusted. Some of them might just collect payments from unsuspecting clients and not give anything in return. This is when exchanger monitors come in handy. Monitors are basically services where information from hundreds of exchangers gathers: exchange rates, reserves, operation mode, customer reviews. Monitors enable users to compare and find the best cryptocurrency exchange rates on the most popular and reliable exchangers globally. This is the best way of buying Bitcoin, Litecoin, Dogecoin, Ethereum, Ripple, and so on.
Bitcoin purchase on exchanger monitor OKchanger
What to do with cryptocurrency after purchase?
After you’ve purchased some cryptocurrency, the following question ensues: «What am I supposed to do with it now?». Cryptocurrency is a powerful tool that should be used responsibly and with care. This is why you need to think about how you are going to use the cryptocurrency you bought. You have 3 options:
- Wait for the moment when the price of your commodity reaches a certain level to sell it for profit. You can decide to buy some more at a later time and repeat the procedure.
- Use the cryptocurrency as a long-term investment. Bitcoin rose from 600 dollars to 3,000 dollars in just a couple of months. What if your commodity will reach a million?
- Today, cryptocurrency is a legitimate form of money that can be spent. People buy houses, cars, food and drinks and send payments with bitcoins. You can do the same.
Bought some cryptocurrency? What to do next?
Why should I buy cryptocurrency?
The crypto industry came into existence not a long time ago but is already blooming. Crypto money can be spent in stores and its value is rising relentlessly with no end in sight. This new cutting-edge technology translates into more secure money deposits, because no government is able to reach them. Additionally, cryptocurrency is immune to manipulative tactics of central banks. Freedom and possibilities that come with crypto cannot be ignored. This is why you should definitely invest in cryptocurrency, and you better start doing it right now.
