Purchasing Cryptocurrency Using Cryptocurrency

Many new investors find a legitimate project to buy into, but then become confused about how to obtain the desired coin. Because most coins do not offer USD pairing, people cannot purchase them with money.

The best way to acquire coins in this situation is to sign up for an exchange such as Binance, KuCoin or EtherDelta, which allow trading between cryptocurrencies and Ethereum. You buy Ethereum with money, and then send it to the ETH wallet on any of the previously mentioned exchanges, which will let you trade it for the desired cryptocurrency. Ethereum is recommended over Bitcoin, as Bitcoin has long transaction times and prohibitive fees.

The last step of investing in cryptocurrencies is securing your investment. This step is crucial, as leaving your coins on an exchange or a poorly secured wallet can result in the loss of all of your money. In 2014, a large number of people lost all of the coins stored on the Mt. Gox exchange. The scandal, which was enormous for the market at that time, led to a crash that lasted two years.

To secure your investment, you need to download a trustworthy wallet that can store your coins. You can often find recommendations on the online communities of fellow investors of the coins you bought.

Follow the instructions on the official website to set up your wallet and then transfer the coins from your exchange to your wallet. To ensure your investment is safe, you need to remember your public and private keys (especially the latter) or the passcodes you received when setting up your wallet. If you lose them, you lose access to your coins.

Once you are secured, you can sell the coins whenever you want by reversing the process.

Initial Coin Offerings Details
Lastly, every crypto investor should be aware of the ICO, which stands for Initial Coin Offering and is akin to crowdfunding a new cryptocurrency. A legitimate ICO usually ends up doubling or tripling its value once the coin is listed on its first exchange, and when held for a long time can turn investors into millionaires.

However, as with any investment, ICOs pose the risk of illegitimacy. The team behind the coin, who might be running a scam, can run away with the money. One recent example is Prodeum, a coin purportedly created for buying vegetables and fruit. Instead, the team disappeared with the funds, wiped all related social media accounts, and left the investors with nothing.

Buying into cryptocurrency is a somewhat complicated process that is worthwhile for serious investors. However, participation is not worth taking a bank loan. Do not let emotions drive your actions, and don't spend more than you can afford to lose. It may be wise to consider the money gone as soon as you invest.