How to Buy Bitcoin and Other Cryptocurrencies: A Guide for New Crypto Investor
Once you’ve learned the lingo, accepted the risk, and met your other financial priorities
, the next step to crypto investing is actually buying in.There are thousands of different cryptocurrencies, but experts say you should take a hard pass on most of them. Crypto values fl
uctuate by the hour, and this can be especially true for lesser-known coins. Even more established cryptocurrencies like Ethereum and Bitcoin experience their share of volatility, but at least have a greater record of increasing in value over time.
The process for buying Ethereum — or any other altcoin — is the same as the process for buying Bitcoin, but we use Bitcoin as an example throughout as it’s the most valuable and most widely-held crypto on the market right now.
1. Choose an Exchange
Bitcoin can’t be purchased through your bank or investing firm yet — though some organizations are working toward that possibility in the future. For now, you’ll have to go through a cryptocurrency trading platform to exchange your U.S. dollars for Bitcoin or other digital currencies.
2. Fund Your Account
Depending on the exchange you choose, you may need to provide information like your Social Security number, ID, and your source of income when you create your account.
3. Place an Order
Once you’ve connected a payment method, you’ll be able to actually place your order for Bitcoin. This process can differ depending on the exchange you use.
4. Practice Safe Storage
Many exchanges allow you to leave your investment within your account, which is easiest for most beginners. But if you want to further secure your digital assets, you can transfer them into a cryptocurrency wallet.
While Bitcoin’s recent massive price swings highlight its volatility, many experts say a small holding of cryptocurrency li
ke Bitcoin can be a healthy (if speculative) diversifier in your overall investment strategy.
