It’s 2021, and cryptocurrency is more popular than ever. One of the main reasons for its popularity is that cryptocurrencies offer immense short-term benefits, making them an ideal option for investments, but it comes with its own risks. If you also want to buy cryptocurrency, we can help. In this guide, you will learn how to buy cryptocurrency in 2021. Let’s get started.
What is cryptocurrency?
Let’s start with the very basic questions: What is cryptocurrency? Cryptocurrency is basically digital currency that you can use like regular currency, but what makes it unique is that it is controlled by any central authority. This means that the value of the cryptocurrency is mainly dependent on demand and supply.
How many cryptocurrencies are available?
Cryptocurrencies are quite popular, and according to one estimate there are over 10,000 cryptocurrencies available, but the point is, a large portion of them have no real value. However, there are some that are valuable, and according to one estimate the combined value of cryptocurrencies is over $ 1.9 trillion, which is higher than the GDP and federal reserves of most countries around the world.
What are the most popular cryptocurrencies?
When it comes to cryptocurrencies, there are tons of them, but these are some of the more popular cryptocurrencies.
1. Bitcoin is arguably the most popular cryptocurrency, with a market capitalization of over $ 850 billion. It is also one of the most popular cryptocurrencies, as it is currently valued at over $ 46,000 per Bitcoin.
2. Ethereum is another very popular cryptocurrency, and it is the second largest cryptocurrency with a market cap of over $ 390 billion. It is also the second highest cryptocurrency with a value of $ 3,300.
3. Cardano is one of the most popular cryptocurrencies, with a market cap of over $ 75 billion. It doesn’t have a high value like the others on this list, but it is quite popular and can offer good returns without risking a lot of money.
Are cryptocurrencies a good investment?
Cryptocurrencies have become one of the most popular options for short and long term investments, but like other investments, they also come with their own risks.
If you have a good understanding of how cryptocurrencies behave, you can definitely invest in them and make huge profits. But, you should also note that if you are unfamiliar with the behavior of cryptocurrencies and invest your money in the wrong cryptocurrency, you can lose your entire investment in a day.
For example, if you take the example of bitcoin, it was trading over $ 50,000 on September 7, 2021, but crashed to $ 45,000 within 24 hours, and investors lost $ 5,000. in one day. However, there are chances that Bitcoin will recover, and if it does recover, investors could get a good return on their investment.
Ultimately, investing in cryptocurrency is surely very risky, but if you have the right information, you can surely make good profits on your investment.
How to buy cryptocurrency?
Now that you know about cryptocurrency, let us walk you through how to buy cryptocurrency. If you want to invest your money in cryptocurrency, you can do it in 4 easy steps.
Step 1. Choose your cryptocurrency exchange
Like common stocks, cryptocurrencies also have their exchanges where you can buy and sell your cryptocurrencies. When it comes to crypto exchanges, there are tons of them available, and their availability varies from region to region.
For example, if you want to buy cryptocurrency in the United States, popular crypto exchanges are Coinbase, Gemini, Binance.US, and Kraken. These are the 4 most popular and trusted crypto exchanges in the United States.
Once you have chosen the exchange, you will need to register and provide all the relevant documents to get your account approved. When selecting the exchange, make sure that the cryptocurrency you want to invest in must be available on the selected crypto exchange.
Step 2. Connect your payment method
Once your account is approved, the next step is to connect your payment method to your account. Most crypto exchanges support debit / credit cards for payments, but they also offer other methods like bank deposits and other regional payment options.
Once you have selected the payment method, it is also important to check the fees associated with each payment method. Usually the fees for debit / credit cards are lower than bank deposits, and you also get money in your account quickly compared to a bank deposit. Once you’ve added the payment method, the next step is to add the funds to your account.
Step 3. Buy your cryptocurrency
Once you have funds in your account, you can use them to buy cryptocurrency. When choosing cryptocurrency, make sure you choose the one that has a good reputation and is trusted by other sellers in the community.
We also recommend that you join the Cryptocurrency Communities on Facebook and Reddit for Crypto Signals which will basically provide you with information about the ideal cryptocurrencies for investing, and you can use that information to get good profits.
Step 4. Store your cryptocurrency
Most crypto exchanges come with built-in wallets, but the point is, they’re prone to hacking, and we don’t recommend storing your cryptocurrencies on an exchange. Alternatively, you can use a mobile crypto wallet to store your cryptocurrencies. There are tons of great cryptocurrency wallets available, and you can choose the one that’s right for you. If you are interested, you can check out these guides where we have shared cryptocurrency apps (including crypto wallets) for Android and iPhone.
That’s all. In this guide, you’ve learned how to buy cryptocurrency in 2021. We’ve also shared popular crypto exchanges and some tips you can use when investing in cryptocurrencies. If you have any questions let us know in the comments. Also consult this guide where we have shared the best cryptocurrency apps for Android.