Cryptocurrency has gained massive popularity as a medium for private transactions and an investment vehicle. This is largely thanks to the many benefits it offers as a decentralized currency and its potential to provide lucrative gains. However, as a beginner looking to venture into the world of digital currency, you probably have a lot of questions, especially about how to buy cryptocurrency. In this piece, we take you step by step through some of the ways you can go about acquiring your virtual currencies.
Choose a reliable option
First things first, you need to choose a reliable method through which you can buy cryptocurrency. There are several ways you can buy digital currencies and these include:
- Crypto exchanges
- Bitcoin ATMs
- Peer-to-peer platforms
- Over-the-counter brokers
As you choose how to buy your cryptocurrency with cash, consider several factors such as regulatory compliance, security, transaction charges, speed of transaction, and user-friendliness.
Set up your crypto wallet
Before you buy your cryptocurrencies, you will need to have a digital wallet that you will use to safely store your virtual currencies. There are hot (online) and cold (offline) wallets and it’s up to you to choose the one that works best for you. You can even have both, so you keep the cryptocurrency you need to transact regularly in an online wallet and the balance, that you do not intend to trade immediately, in a cold wallet.
Open an account and validate your identity
As you explore how to buy cryptocurrency with cash using crypto exchanges and other platforms, you need to open an account—which is a fairly easy process. You just need to provide your name, email address, and contact details. After that, you need to validate your identity, as it is often a requirement of many platforms to prevent fraud. You will be required to provide a government-issued identification document like a driver’s license, passport, or ID card. If you’re opening the account online, you may be required to take a selfie for verification.
Initiate the transaction
Depending on the method you’re using to buy cryptocurrency, you can initiate transactions in different ways. If you’re using an online platform, you browse through the listings to find sellers who will accept cash and have a good reputation. You can then initiate the trade by engaging them and agreeing on the terms of the transaction. You may arrange to meet with the buyer or how you remit their payment so they transfer the crypto to your wallet.
If you’re buying digital currency at a physical exchange, you hand over the money after agreeing on the exchange rate and the exchange staff transfer the coins to your wallet on the exchange. When buying from an ATM, you locate the nearest machine and visit it. You then follow the instructions on the screen to deposit cash and get cryptocurrency in your wallet.
Complete the transaction
You must quickly confirm that you have received the cryptocurrency in your wallet and that the transaction is completed on the blockchain. Where possible, use an escrow service to safeguard your funds, because the escrow service only releases funds to the seller after you confirm receipt of the digital currencies.
Secure your cryptocurrency
After you complete the transaction, take some sensible steps to secure your digital currencies. You can do the following to secure the cryptocurrencies:
- Transfer your crypto to a secure wallet if you had them on the exchange wallet
- Activate two-factor authentication for your wallet
- Consider holding your digital currencies in a hardware wallet, especially for long-term storage
Conclusion
If you have been looking for ways to buy cryptocurrency with cash, the above steps can help you maneuver through the process safely. Always, use reputable platforms and methods, and be cautious about the security of your assets.