How to buy cryptocurrency

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How to buy cryptocurrency[edit]

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Since early 2017, the capitalization of the blockchain market has been growing rapidly. Bitcoin, etherium and litecoin have on the average increased 15 times. Since October 2016, the Bitcoin rate shows 610% growth, litecoin - 1180% growth and the etherium - 2260% growth. Therefore, cryptocurrency can be a good investment.

Before buying a currency, you should create a wallet in which the purchased coins will be kept. Wallets are of several forms, but they all differ according to the kind of cryptocurrency you can keep in them. The wallets downloaded directly from the site of the currency are intended only for it.

For example, Bitcoin.org offers a large range of wallets for various devices (PCs, tablets, smartphones). They are available either in the form of downloadable software, or in the web version. Ethereium.org provides wallets for the Etherium, and so on.

However, there are also "multi"-wallets to keep several cryptocurrencies. They are provided by third-party developers (for example, Cryptonator.com) or sites where a purchase will be made directly: exchanger-sites and online exchanges. The most authoritative ones among them now are: Cryptsy.com, Coinbase.com, AlfaCashier.com, and you can see a list of all online exchanges at BitMakler.com.

The algorithm for creating a wallet is simple: registration is conducted by e-mail, followed by verification - and the system sends a unique number.

To purchase a crypto currency, you must have initial capital, which you can upload to your wallet account. The money can be withdrawn through bank transfer. Immediately after money gets the wallet account, it can be used to buy crypto currency.

However, some exchanges, like Poloniex.com, work with cryptocurrencies only. Therefore, the exchange sites, mentioned above will be useful for newcomers in the first place.

You can withdraw funds to your crypto wallet using a unique number (it was provided to the user when the account was created). Most often, exchanges charge interests for deposits and withdrawals of funds.

However, when funds are transferred from one server to a personal wallet and back there may be delays. This may be due to the congestion of the network, because about 288,000 transactions are conducted a day. And in order to verify the transaction success rate, there are Blockchain Explorers. Blockchain.info is most popular among them. A unique number of your wallet must be entered into the "Search" column, and then you can see all the transactions made and their status.

Cryptocurrency can also be bought informally on Internet forums. You need to take some precautions before making a deal and transferring a unique number of your wallet to the seller. First, you should buy coins from users who have links to previous successful transactions. Secondly, you must always be sure that the cost of the coins has not decreased while the discussion of the deal has been going on.

You must always remember that the crypto currency market is very volatile, and the coin's value can both grow and fall rapidly.

See Also on BitcoinWiki[edit]