This article has been sponsored by CEX.io.
There are many reasons you will want to invest in cryptocurrency; with multiple uses and endless possibilities, crypto is on the tip of everybody’s tongue. But how do you go about buying it? Where do you keep it? And where can you spend it?
This guide gives you a simple and easy to follow breakdown of how to buy Bitcoin or any other cryptocurrency and where to store it safely:
- Choose your cryptocurrency.
- Invest in cryptocurrency wallet.
- Buy Cryptocurrency.
- Move cryptocurrency to the wallet.
Decide Which Crypto Do You Want
The first step in your quest to owning your own crypto is deciding which currency you want. For the purposes of this guide, we will be looking at purchasing and storing Bitcoin. The steps are not that different for altcoins, so we will be referencing those along the way as well.
Deciding on your crypto should be a well thought out process. If, for example, you’re acquiring the crypto to use in e-commerce stores, then it’s best to make sure that the currency is accepted as a payment method.
If you’re looking to purchase crypto as an investment tool, then you will need to research the market and find out as much information as possible about the coin and then work out if it is a viable investment. Some tokens are fantastic for investment, others have some serious drawbacks, so work out carefully which token you want.
Read more in our guide How To Choose Cryptocurrency To Invest.
Get Yourself a Crypto Wallet
After you have decided which coin is for you, you will need to obtain the correct wallet. There are also different types of crypto wallets as well, which we will briefly give you an overview of.
The easiest way to obtain a wallet is to get a free software wallet. You will need a wallet in this instance that will be compatible with BTC. Ether wallets are slightly different, and you will need to download a wallet that supports ETH.
However, there are multi-coin wallets available as well. If you’re looking to buy, own or trade in many coins, Jaxx and Exodus are some of the wallets that hold multiple currencies.
Types of Wallets
Thus far we have mentioned only software wallets. They are downloadable, held on your desktop or mobile device and provide ready access. Because devices are often linked to the internet, there is a security risk with software wallets, and hackers work tirelessly to create new and innovative ways to steal from people’s software wallets.
Alternative wallet types are:
- Hardware Wallets – Often these are detachable hard drives or USB sticks that enable the user to store currency and not worry about an internet connection (a hacker’s window of opportunity) when they are removed from the device, e.g. Ledger Nano S or TREZOR.
- Paper Wallets – They work in much the same way as real money would, allowing you to assign a serial number to your currency and print it. The issue with paper wallets is twofold. Firstly, you have to keep it securely and not forget where you left it. Secondly, modern currency is often not printed on paper; it is printed on fabrics or polymers. Paper degrades easily, so make sure you’re printing to a high grade and durable paper.
- Exchange Wallets/Web-based wallets – This is the least secure type of wallets, and it is advisable not to leave crypto in an exchange or web-based wallet. There have been numerous raids on ‘online wallets’ over the years.
Buy Crypto
Once you have your wallet the simplest way to obtain crypto is to purchase it. This is where a Bitcoin exchange like CEX.IO comes to help. To make use of exchanging operations, you will need to undergo registration and create an account.
This means you will be able to readily access the CEX.IO exchange which supports crypto purchases using a credit card. Another useful aspect of this exchange is that they charge relatively low fees for their trading service.
There are other exchanges available online, all to varying degrees of reputability. If you are considering using an alternative exchange, then read up on it using online forums and review websites. Also, make sure you are aware of the exchange’s fees, as this should be a consideration.
Move Your Crypto Into The Wallet
This step is a crucial final step. Don’t keep your crypto in exchange as you’re leaving yourself exposed to hackers. Once you have moved your crypto to your wallet, you are then free to use it as you would do with fiat currency.
Be as wary and protective as you would with real money.
Don’t give any private information to anyone, and, of paramount importance, keep your private keys safe. Public addresses are fine to share and act as a location for people to be able to transfer crypto to you.
To summarise, every crypto has a wallet that it is compatible with, which you will need to acquire to store that currency. The most accessible route to get crypto is to purchase it on the exchange; although, there are other ways of making crypto.
Keep your wallet details private, write them down in a notebook if needed, and make sure you protect your crypto as you would do with any real-world currency.
We hope you found the article useful and enjoyed making your first crypto purchase! Stay safe.
Read more in our CEX.io review and open your account with CEX.io.
