In continuation to my previous article(https://moneybingos.com/2022/11/02/5-of-the-best-cryptocurrencies-to-buy-immediately-in-2023/) Today, I will let you guys know “how to invest in cryptocurrency“. It can be very challenging for a rookie investor or buyer to understand how to purchase cryptocurrencies. Through an exchange like Coinmama, eToro, Kraken, Binance Coinbase, Changelly, and Gemini, there are many options to purchase bitcoin in the USA. The crypto exchanges mentioned above are the safest and most trusted exchanges in the world. I will discuss the top crypto exchanges in my future posts so today let’s find out “how to invest in cryptocurrency in 2023”.
The classification of cryptocurrencies by US federal regulators as commodities, assets, and securities implies that buying, trading, mining, and other interactions with cryptocurrencies are all legal in the US. There are many options, so it is best to compare the fees, transaction speeds, and deposit and withdrawal methods of each exchange before deciding which is ideal for you. I’ll go over the five simple stages to getting started with how to invest in cryptocurrency in this article.
Process to Buy Cryptocurrency in the USA:
In the US, purchasing cryptocurrencies is simple. You must choose a broker or cryptocurrency exchange first, and then an exchange to buy from. The next step is to complete a KYC (Know Your Customer) process to verify your identification. This includes giving the exchange your full name, birthdate, and address. They will then need a copy of your government-issued ID card to confirm your identity. Once your identification has been confirmed by the exchange, you can effortlessly purchase and sell cryptocurrency.
Basic steps of investing:
Let’s quickly go through each step in the process of investing in cryptocurrencies:
- Process to Buy.
- Choose a broker or Exchange.
- Identity Verification (KYC).
1. Choose a Broker/ Exchange:
Discovering a platform to purchase a cryptocurrency is the first step in the process. An exchange is the most practical and economical option to buy cryptocurrency for the majority of consumers.
When buying a cryptocurrency, there are a few key elements to take into account, such as security and reputation, software or user interface, fees, and exchange costs. Exchanges for cryptocurrencies such as eToro, Coinbase, Gemini, and Binance are some of the most well-known. Always research properly all the exchanges and consider security and fees because all the exchanges have their parameters for transaction fees. Exchanges such as Binance and Coinmama has very low transaction fee, so you can go with these by researching on your own.
2. Identity Verification:
Cryptocurrency purchases require some sort of authentication, like KYC. They’ll probably need a combination of your bank account information, your driver’s license or passport, your address verification, and a recent photo. Do not be afraid of this procedure because it is necessary by law for the most secure and regulated cryptocurrency exchanges to collect that data. KYC process to buy cryptocurrency is very important as this prevents crypto crimes like money laundering etc. There are other ways also in the market to buy cryptocurrency without following the KYC process, but I will not recommend these to my users, as that is not safe.
3. Purchase of Cryptocurrency ( Bitcoin, Ethereum etc.)
After completing your KYC, you should be able to buy Bitcoin, Ethereum, Tether, or any other cryptocurrency at the going rate right now. In general, buying cryptocurrency on an exchange is a relatively simple process. But in this case, you need to be cautious of the following:
Using a credit card to deposit money is very risky and expensive. You have to pay the extra advance fee using credit cards, so you need to consider this thing while using a credit card to buy cryptocurrency.
4. Storage of Cryptocurrency:
There are various ways to store cryptocurrencies. For increased security, many people prefer to shift their cryptocurrency from exchanges to hardware wallets. Since this is dependent on your technical proficiency, if you lack it, your cryptocurrency may be safer on an exchange. Making several transactions from an exchange account is ultimately up to you.
5. Management of Cryptocurrency:
So, congrats for finally getting some cryptocurrency in your pocket and it is totally up to you what you choose to do next with your crypto. You can simply leave it alone, hoping that it will increase in value, or you can stake it with crypto loan companies to attract attention.
The information mentioned in this article is purely based on our research and thought. As an investor, it must be the responsibility of all individuals to do thorough research because it is a matter of your hard-earned money. Nowadays, a lot of scams happened in the world in the name of cryptocurrency. So, always do buy crypto from trusted exchanges and brokers. This site is not sponsored by or has any relationship with any kind of exchange and broker, so we insist our users to invest wisely as per your knowledge and risk.
So, Friends, this is the simple process to invest in cryptocurrencies. Thanks a lot, if you shared and rated my work, it would make my day 🙂