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Cryptocurrency is the nee wave right now, and lots of people are still looking for ways to jump on the bandwagon. If you are one of such people, you might want to take a little time out to read and and learn a little about it before you get started.
This post explains what cryptocurrency is as well as how to get started and buy your first crypto on CEX.IO.
Cryptocurrency is a digital form of payment that can be used for transferring wealth and for exchanging different goods and services online. Cryptocurrencies use peer-to-peer systems that allow sending and receiving payments anyone, anywhere. They don’t use banks or other centralized third parties for transaction verification, all transactions are recorded on distributed digital ledgers like blockchain.
In cryptocurrencies, blockchain stores transaction history and other details about interaction in the network. All the information is recorded on the “blocks” that are firmly connected to each other and use complex encryption, so it is difficult for hackers to break through such a system. It means blockchain technology makes crypto transactions secure and trusted without a need in the middleman.
Cryptocurrencies are stored in users' digital wallets and only coins’ owners control them. Just like cash in your pocket. Also, as well as cash, crypto transactions can be anonymous since addresses for sending and receiving money are just collections of numbers and letters.
So, if you own crypto, it’s only your own money and you don’t need to rely on some middleman to verify transactions. That’s one of the reasons why it’s so popular. Cryptocurrencies allow unbanked people and those who live in countries with underdeveloped banking systems conduct international transactions fast and easily. In advanced countries, cryptocurrencies are most widely known for their investment and trading attractiveness due to the high volatility. Some even use cryptocurrencies, for example bitcoin, as a store of value to protect from inflation in the long term.
There are more than 8000 different cryptocurrencies and they are not the same. Each cryptocurrency is the whole world with its own rules, addresses, and opportunities for users. For example, you can stake some cryptocurrencies and receive a reward for that, while others need to be mined to get a reward. Before deciding whether to buy a particular cryptocurrency, you should familiarize how it works and can be used.
Crypto market share in investing is gradually increasing but cryptocurrencies are good not only for investments and transferring funds. They also can be used for performing various actions within the network. For example, you can buy Tron coin (TRX) to pay for the content available on the Tron network. Plus, owning a certain amount of cryptocurrency can even open up new opportunities for users. For instance, users can freeze 1000 Dash coins to become a masternode and receive a reward for verifying transactions.
Some platforms have their own blockchain and native cryptocurrency to serve this network, while others create their own platform based on the existing one. Just like Ethereum-based protocols with their own cryptocurrency. Thus, the situation in one network can affect the situation with another cryptocurrency and network.
Before buying cryptocurrency, it’s important to define what you will do with it and find a place to store it. If you want to buy cryptocurrency for trading, evaluate whether buying it fits your strategy or not.
It is one of the most common questions crypto newcomers ask and try to find the answer. People are arguing about which crypto to buy now all the time but it is the same as trying to find out what is the best dish for dinner. Since each crypto has its own purposes and abilities, there is no such thing as the best crypto. That is why we have a crypto market and a choice.
In the case of investment attractiveness, it’s also difficult to say without understanding the perspective. For example, bitcoin has already established itself as a good asset for long-term investments. Until now, those who held bitcoin for a few years were rewarded for their patience. At the same time, bitcoin doesn’t always experience high volatility and it may disappoint some short-term Bitcoin to Dollar traders.
The situation in the crypto market changes every second. If the price of some cryptocurrency is surging at the moment, it doesn't mean that it will continue surging tomorrow. Some cryptocurrencies that were on top in trading volume and market capitalization a couple of years ago lost most of their value. They may experience long-term correction or just be a one-day wonder. On the other hand, a lot of new coins gain momentum but nobody knows how long their rally will keep going.
Let’s say that you finally decided which crypto to buy and how to use it. The next step is finding a good place to buy it. The most common place to buy and sell cryptocurrency is a cryptocurrency exchange. Crypto exchanges can be centralized (CEX) or decentralized (DEX), the latter ones are most often located on the blockchain and use smart contracts for operations.
On decentralized crypto exchanges, you can buy crypto only for another cryptocurrency, while CEXs can be both crypto-to-crypto and crypto-to-fiat. CEX.IO is a regulated crypto exchange that supports both cryptocurrencies and fiat currency to buy and trade crypto and allows you to buy bitcoin with a credit card instantly, as well as other cryptocurrencies.
Before using the platform, the first thing you should figure out is whether it supports your country or not. CEX.IO is a global crypto exchange that is available in most countries, but there are territories where a crypto exchange cannot provide its services due to government restrictions. You should also be prepared for going through the KYC procedure if you want to use a regulated and reviewed exchange like CEX.IO.
A large selection of payment options is also an important aspect when choosing a cryptocurrency exchange. For example, at CEX.IO, you can buy Litecoin with credit card, debit card, international (SWIFT) or domestic (ACH, SEPA, Faster Payments) bank transfer, and even using online wallets like Skrill and Epay. That applies to all other cryptocurrencies on CEX.IO.
At CEX.IO, it is even possible to use payment cards in any local currency to deposit funds and buy crypto. Just select the currency on CEX.IO (USD, EUR, GBP, or RUB) and make sure that your Visa/Mastercard payment card supports conversions and international transactions. The funds will be automatically converted to the required currency at your bank rates.
Fees can be the determining factor, deciding where to buy crypto. Keep in mind that fees depend on the payment option and service you have used. There are even commission-free payment options available on CEX.IO. Also, if you are an active trader, you can get lower maker/taker fees that may improve or give access to some trading strategies.
With CEX.IO, users are not limited to only one service or payment option to buy crypto. For example, if you want to buy crypto as fast as possible, then you can consider using the Instant Buy service. It allows you to use a payment card or CEX.IO balance for buying crypto in a few seconds. So, if you want, for example, to buy ETH with credit card quickly, Instant Buy is one of the best options.
The whole process of buying crypto using Instant Buy is pretty simple:
1. Open the Buy/Sell page on the CEX.IO website or in CEX.IO mobile app;
2. Select the crypto you want to buy from the dropdown list and fiat currency to use;
3. Choose the pre-calculated pack or enter your own amount;
4. Opt a payment option — debit/credit card or CEX.IO balance;
5. Double-check the details you entered and confirm the transaction.
In the CEX.IO mobile app, there is also an Instant Sell option that allows you to sell crypto in the same way and withdraw the fiat funds to your payment card instantly.
On the other hand, if you want to expand your crypto experience and start trading cryptocurrencies by placing limit and market orders, you can visit the Trade page. Check it out on the CEX.IO web or use CEX.IO mobile app. CEX.IO supports more than 100 crypto-to-crypto and crypto-to-fiat markets. You can use a search field to find the appropriate market faster. Also, you can always swap between currencies using the Exchange service in the CEX.IO mobile app.
There are two order types available for trading on CEX.IO Exchange — market and limit order. Market orders have instant execution and are used to buy or sell assets for the best available price in the order book. At the same time, limit orders allow you to set the price you want to buy or sell at. But their execution may not be instant since the price must reach the specified level or there should be opposite orders in the order book that can fulfill your limit order.
CEX.IO strives to make your first steps in crypto easy and give you multiple options to find your own crypto way. Discover the platform, find the service and payment option that suits you most, and benefit from opportunities that the crypto world can provide.
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