Are you new to crypto? It can be challenging and sometimes confusing when buying your first cryptocurrency. First of all, how do you safely store your assets? And where is the best place to purchase? These are both excellent questions. In this article, we will discuss the best options for keeping your crypto assets safely as well as the best exchanges to purchase.
In order to safely store your crypto you will first need to get a wallet. Crypto wallets come in two forms: hardware and software. Hardware wallets are known as the safest option. However, these cost money while software wallets are totally free.
The importance of sett ing up your wallet properly
It can seem really intimidating for newcomers to understand the technology of wallets. What you need to understand is that they are encrypted technologies that protect your crypo through public/private key encryption. Public key encryption was first invented in the 90s, but you don’t need to know all the details. It is important that you set up and store your wallet properly so that you can easily recover it when you lose your login or password. Hence, there is a key phrase that comes with setting up a hot wallet, that needs to be kept safely stored.
When you want to receive funds into your wallet, all you need to do is share your public key. This can be shared freely without compromising your private key.
What is the best exchange?
Now that you know how to store your crypto safely, it is time to buy. Buying crypto is done o n exchanges. But which exchange should you use you ask?Now this varies per individual. See, the thing you must understand is that every exchange is different. Not all exchanges offer the same crypto assets for sale. So, for example, let’s say you want to buy the new cryptocurrency Internet Computer (ICP). Well, you won’t be able to find this on the Kraken exchange. But you will be able to find it on Coinbase. But how does one figure this out?
Find out which exchange offers which cryptocurrencies
It is simple. There are tools that you can use that will help you find out where to buy which cryptocurrencies. Coingecko.com and Coinmarketcap can help you with that. They show most of the cryptocurrencies and tell you where you can buy them. You can go to Coingecko.com and type in the name of the crypto you want to purchase in the search bar. When you get to the page you want to find on Coingecko.com, you will see following menu bar:
You will want to click on the markets option, and then a list will appear of all the various markets and exchanges that sell the crypto you’re looking for. Choose a market ideally with a high trust score. Additionally, you should know some exchanges will not allow you to register if you’re from a certain territory in the world. For example, if someone lives in New York, they cannot use Kraken Exchange. Although, this is only true for centralized exchanges.
Other ways to buy crypto
On a decentralized exchange, there are no such limits. One example of a Decentralized Exchange is Uniswap.
When first purchasing crypto, for many it can be best to go to a centralized exchange first. Then when you get more experience, it can be good to move to DEXs (decentralized exchanges).
However, there are other ways to buy crypto as well. In some places you can even go buy Bitcoin in person at a supermarket. But, the best place to do this is generally online on an exchange. Likely the first time you’re buying crypto, you’ll be looking at a major alt like Ethereum or Bitcoin. Most of these should be on almost all centralized exchanges so you shouldn’t have an issue here.
Finally, when you buy crypto on a CEX (centralized exchange) you will first need to register on the exchange. This is a short process which should take no longer than half an hour. And you should be verified by the exchange to buy and sell within the same day as registration.
To find out more about centralized exchanges and which one to use you can find out more in this article: How to buy crypto – 3 easy ways.
Once you have opened your own personal crypto wallet and found the exchange you want to purchase on, then you’re good to go and will be a cryptocurrency investor in no time. Trading crypto for the first time comes with a learning curve. As the market is still so new there is still not alot of transparency. We therefore recommend you to read up on every tool and platform you use and test them out with small investments to mitigate your risk.
Aaron is passionate about blockchain and has been an investor in cryptocurrencies for the past years. He enjoys engaging with other people in the cryptocurrency community online, particularly on Telegram, and learning from experts.