Yeah, it is the crypto era, everyone wants to trade their first crypto and more than trade their first crypto, make money in the sector. If this is your first time and you are excited to delve into the crypto space and hit the ground running or you just want to explore the requisite knowledge, let us go.
How can I Buy my First Crypto?
You can buy the leading cryptocurrency, bitcoin, directly from your peers, friends, hodling families or via recognized cryptocurrency exchanges (trade platforms). You can get close with an individual and purchase bitcoin from them directly with hard currency, and you may choose to pay up via bank transfers or even with other cryptocurrencies and tokens.
Just before you purchase your first bitcoin, kindly note that you have to prepare where to safeguard it.
Since bitcoin is a digital coin, store your virtual wallets regardless of whatever medium you used to purchase the digital gold. Your virtual wallet may be a custodial wallet (accessed via a cryptocurrency trade platform) or a non-custodial wallet (a digital wallet provided by an independent wallet service provider). Store them in a hardware device, desktop wallet, or even a mobile wallet, etc. The same way you use a bank account number to identify a traditional bank account, your wallet address is your crypto wallet identifier. It is what you send to traders as your digital storage address for crypto transactions.
Before transferring any unit of bitcoin to your wallet, make sure the entire wallet address, which is a mix of letters and numbers just like this xFgFh1ghG35fvs4KjHFSB is correct and intact. Also, please safeguard your private keys and password as properly as possible. You do not want to lose them.
One way to purchase your first bitcoin is to open an account on a crypto trade platform or exchange. Please conduct your due diligence research before choosing an exchange as many have either proven to be shams or have just become insolvent and could not remain a going concern despite the vast amount of money stashed on the exchanges.
Examples of recognized Crypto exchanges are Binance, Bitfinex, Poloniex, Coinbase, Bitstamp, Gate.io and FTX. Be ready to provide details that will identify your person and physical address as extant regulatory trends demand that these trade platforms comply with Know-Your-Customer (KYC) and Anti-Money-Laundering (AML)/Counter-Financing of Terrorism (CFT) rules. These rules require that customers of crypto trade platforms verify their identity.
After setting up your account on a trade platform of your choice, you are ready to purchase your first BTC. Take not that crypto exchanges charge fees for each transaction-buying and selling. You may purchase your first crypto directly from the exchange or via peer-to-peer options or services. In either of the two options, you may have to transfer fiat currency via bank transfer, etc., as payment for the units of bitcoin that you purchase.
Crypto exchanges usually act as an escrow when you purchase BTC or other cryptocurrencies from their peer-to-peer platform- holding trader’s token till you wire funds into the trader’s account, the P2P trade platform then releases the crypto to you. Once you pay, the exchange deposits the unit of bitcoin that you bought into an auto wallet on the exchange. You may also buy bitcoin offline and with cash via services like LocalBitcoins. Apps like Paxful and BitQuick enable customers to make cash deposits to the traders accounts and receive bitcoin.
Should your country have BTC ATMs, you may also use a bitcoin ATM just the way you use traditional ATMs. This time, pay in fiat currencies; hold up your digital wallet QR code and boom you get the crypto into your wallet.
How to Sell Your Bitcoin
If you can buy bitcoin, you are already halfway through the knowledge of selling your first bitcoin. You may also register on platforms like Paxful, LocalBitcoins, and Localcryptos as a direct crypto vendor. Should buyers like your rates, they may reach out to you to purchase bitcoin. While you do your part by remitting the units of bitcoin to the buyer’s wallet address, expect the trader to wire the payment to your bank account (or payment method).
Please take note this piece is merely for informational purposes alone and not business or investment advice. When choosing what service to subscribe to for your custodial or non-custodial wallet, please conduct your due diligence research before the execution.
If you have come this far, congratulations on your journey to purchasing and trading your first bitcoin. Let us know your experience via the comment section below.
The Author is a transactional legal practitioner in the Tech and IP space. She is glad to answer your questions and know your experience via the comment section below.
Originally published on CryptoCurrency Academy.
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