Buying your First Cryptocurrency - Where to Start?
It's never too late to invest in digital currency. Being a beginner in cryptocurrency doesn't mean you can't make money. With an ever-changing market, each cryptocurrency gives you a possible "in" relatively quickly. However, careful planning is necessary for optimal (and positive) growth in the market.
As a general rule of thumb, do not purchase from the first cryptocurrency exchange you click on. Not every market has the same design, and some are outright scams. Finding the exchange that works for you and your digital currency needs helps build a solid foundation for your strategy. After all, your strategy will largely depend on the cryptocurrency exchange (your money is at risk) you decide on.
Before considering where to buy your first cryptocurrency, decide which cryptocurrency you want to purchase. You have many options, so choose the crypto that fits best with your strategy, even if you need to try more than one to determine which coin that is. This will play a monumental role in your future success in the digital exchange markets.
Know the Basics of Cryptocurrency Exchange Markets
Finding the right market requires time and effort. The key to your success is the thorough research of each company. Thanks to the growth of the internet, finding information on any relevant exchange shouldn't be too difficult.
Take your time when navigating through your options. Certain exchanges work best for specific types of cryptocurrency while others tackle several at a time. The larger and more diverse markets work best for beginners since the "whales" (heavy spenders) in the industry tend to stay away from them.
Being thorough in your research will help you find the markets that work ideally for you. Here are a few tips to help you weed through your options and find the best sources.
The Main Features to Look for
A successful exchange market for cryptocurrency works seamlessly to deliver reliable service to traders. This means keeping you connected to the market wherever you go. Only select an exchange that allows you to trade through both a mobile app and the web. A company confined to only the web will limit your potential to make money.
Choosing a Cryptocurrency
Each cryptocurrency works differently and requires some knowledge before jumping into it. Bitcoin is more volatile in pricing than other cryptocurrencies, given its huge market that attracts both beginners and advanced traders. For example, many use Bitcoin like online stock trades, which can be either beneficial or devastating depending on the conditions of the market.
Another option is Dash. While it still has a degree of volatility, like any investment opportunity, this volatility isn't as severe as others. Dash also sees a lot of use in Latin America as a payment for goods and services at many local vendors. This makes it more of a stable cryptocurrency because it also focuses on the usability of the currency.
It may be best to choose an exchange with many currencies on it for more flexibility, especially as a beginner. If you find that you don't like a cryptocurrency, you can likely sell it for other coins.
The Red Flags to Pay Attention to
There are several factors to avoid in a company to prevent a sour experience. While most exchanges follow legal compliance laws, others scam beginners outright. Identifying which exchange shows potential and which has red flags helps truncate your list of options.
Here are a few things to consider:
- Always purchase digital currency through direct exchange and never through a third party. Third-party purchases can lead to scams and losing currency. Unlike traditional banking, there is no way to receive a return on an exchange. Once you exchange crypto, it is gone for good.
- Be sure the exchange is secure. While it is technically legal to operate under an unsecured market, it's only suggested if you're an expert who has experience. This can be a trap for beginners who don't have enough experience to understand if a scam occurs.
- Identify the real-world identity of the operator transferring the funds for you. Since cryptocurrency is irreversible, knowing the real-world operator helps if you need to pursue legal claims later. This is the only way to get retribution for any injustice done through the exchange market.
Best Cryptocurrency Markets
Finding a company with multiple crypto purchasing options allows you the freedom to see which you prefer. CEX.IO is an example of one of the longest-running cryptocurrency exchanges in its industry that serves anyone from beginners to experts. It currently offers trading numerous altcoins and Bitcoin for fiat currency like GBP, EUR, RUB and USD.
Using such a long-running service as CEX.IO gives you comfort in knowing it enjoys a secure status without hacks. It also offers multiplatform support, so you can access its services wherever you go so you never have to stop buying or selling.
The exchange offers standard payment options, such as credit cards and bank transfers. Unlike some other exchanges, it also offers the option to pay in cryptocurrency when buying. This gives you a chance to buy and sell Bitcoin (your money is at risk) or altcoins in different areas both in and outside your chosen digital currency.
This exchange provides service to 24 U.S. states and 99 percent of other countries around the globe. This allows for a larger, more stable market since it has a higher volume of crypto traders buying and selling at once. It also offers advanced reporting, competitive commissions, high liquidity, and margin trading services to help you achieve success.
Always Research Before Purchasing
Choosing the best exchange market for cryptocurrency trading, buying, and selling is not something you should take lightly. Avoid falling prey to scam sites by looking into reviews and finding valuable information on the internet. The more research you do, the better you will understand the market.