People are becoming more aware of and interested in cryptocurrencies, which bodes well for the future of digital money. More individuals are interested in learning how to acquire bitcoin as a result of this growing interest, particularly those that deal in the stock market.
For those who wish to understand how to acquire cryptocurrencies, whether for personal transactions, investments, or even if you think you might be able to make purchases from stores, here is what you need to know.
Cryptocurrency may be defined as a type of digital currency. It is a digital form of money that has grown in recent years due to new developments in science. Unlike traditional currencies, it doesn’t rely on any central authority, like a central bank, to authenticate its authenticity.
Tokens (coins) and cryptography are used to verify transactions instead of cash. A decentralized public ledger known as a blockchain is used to send and receive cryptocurrency.
Fiat currencies, on the other hand, are backed by the government, but cryptocurrencies are not. The US dollar, for example, is a fiat currency that is backed by a single authority—the government of the United States.
Cryptocurrencies are digital and do not need a central source since they are protected by a network of computers.
A cryptocurrency that does not use the blockchain of Bitcoin is referred to as an “altcoin,” or an alternative currency. However, the surge in popularity of Ethereum and its linked blockchain might change this.
In certain cases, such as Robinhood, cryptocurrency offerings are divided into the Bitcoin and Ethereum families, while the remainder of the products is labeled “altcoins.”
There are stable coins, which are connected to certain assets, in addition to the primary coins and altcoins. As an example, a stable coin may be connected to the US dollar. The coin is backed by dollars in a bank to keep the value constant in a one-to-one transaction.
There are also stable coins that are tied to other currencies or commodities, such as gold. For those who are learning how to invest in cryptocurrencies, understanding the distinctions between fiat currencies, altcoins, and stable coins is essential.
Crypto on Webull
Webull is a popular trading platform for crypto. They also deal with the stock market. Webull users have access to real-time cryptocurrency statistics. You can use their online website (available here) for crypto, or the Webull app.
Getting Crypto Buying Power on your Webull Account
Your maximum buying power on Webull depends on your account value, what kind of Webull account you have, your available cash balance, the market value of your positions, how much your pending incoming electronic transfer is, and your credit score, among other things.
The limit for a new user is usually around $1000, depending on the above variables.
You will need to increase or improve the listed facets of your Webull account in order to get more instant buying power.
Commonly Used Cryptocurrencies
It is expected that in the first six months of 2021, Visa cardholders spent $1 billion on purchases made with cards connected to cryptocurrencies. Cryptocurrencies are becoming more widely accepted, and more individuals are learning how to invest in digital assets.
According to the CoinDesk20 as of July 12, 2021, some of the most popular cryptocurrencies are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Cardano (ADA)
- Stellar (XLM)
- USD Coin (USDC)
- Uniswap (UNI)
- Chainlink (LINK)
- Polkadot (DOT)
- Litecoin (LTC)
In the early days of cryptocurrency, some coins like Dogecoin (DOGE) were extremely popular, but that has since waned.
How to Purchase Bitcoin
There are several things you need to know before you buy cryptocurrencies, such as:
The Laws and Regulations of Your Nation
Consider that your primary concern should be determining the rules that apply to cryptocurrencies in your nation. You can find out if you’re authorized to purchase, sell, and own cryptos by contacting your country’s major financial regulatory authority. Analytics Insight’s summary of bitcoin legislation is a good place to start.
Iran and Bolivia, for example, have outright prohibited the use of cryptocurrency. Bans on privacy currencies like monero (XMR), which obscure some transaction details and might be used in money laundering, are peculiar to nations like South Korea.
How do you intend to pay for your cryptocurrency?
It’s time to think about how you’ll pay for your cryptocurrency once you know whether it is legal in your nation. Certain payment methods are not accepted by all cryptocurrency exchanges and platforms. There are certain exchanges that only accept bank transfers, while others allow debit and credit cards.
It’s also crucial to remember that certain exchanges enable you to move crypto tokens from other exchanges or crypto wallets into and out of their exchange. In certain cases, you may be able to immediately trade cryptocurrency pairings without first converting to fiat money on the exchange you’re using. As a result, you might save yourself both time and money.
How to Perform Fee Analysis
Fees charged by various exchanges and brokers can vary widely, as can the services they provide. You may also be required to pay additional fees in some cases. You may be charged a “gas” cost if you utilize the Ethereum network to execute transactions.
Get an idea of how much a platform charges by looking at their pricing schedules. The transaction charge may be flat, however, additional fees may be imposed. This might make a sliding transaction charge at a different platform work out better.
See if any additional charges apply. In other cases, the commission is just a percentage of the difference between the asking and the selling prices of a certain coin. Many exchangers will give you the whole amount before you finish your purchase, but in certain situations, you may be shocked later on.
Which coin do you wish to purchase?
Not every coin can be found at every location. There are several Bitcoin exchanges and brokers to choose from if you’re interested in trading the digital currency. Even though DOGE was popular for a while, it isn’t available on all exchanges. If you’re looking to buy some altcoins, you’ll have to go elsewhere.
Because there are dozens of cryptocurrencies to choose from, it’s imperative that you do your research beforehand. Look for an exchange or broker that provides access to the coin you’re interested in. If you’d like to learn more about:
- Buying Bitcoins
- How do you purchase Dogecoin?
- The best way to invest in Ethereum
- How do you invest in Litecoin?
How to get a digital wallet up and running.
Finally, you’ll need a digital wallet that can accept, send, and store your currencies. Understanding the difference between a “hot wallet” and a “cold wallet” can help you make the best decision for your needs.
- With a “hot wallet,” you’re always linked to the internet. One way of making it easier to transfer and receive coins is by using a web-connected wallet service provided by a large exchange.
- It’s important to note that a cold wallet does not have an internet connection. It’s a wallet that appears like a USB flash drive. This implies that your security keys are not stored in the cloud. To transmit or receive cryptocurrency from another location, you must connect your wallet to a computer.
Make sure the wallet you choose is compatible with the coin you want to use. In order to make sure your wallet is compatible with the coin(s) you plan on purchasing, do some research in advance.
Where can I purchase cryptocurrency?
You can buy crypto from a variety of different places, all of which we will cover below:
Exchanges of Broker
The finest cryptocurrency exchanges operate in the same way as traditional brokerages. With a crypto broker, you may select a coin to purchase, just like you do with an internet broker, and place your order. It’s also possible to buy a fraction of a coin.
There are several ways to get started with Bitcoin, such as by purchasing a small portion of one. If you’re using an exchange, it’s helpful to see the minimum transaction amount listed for each currency.
It is possible to buy, sell, and trade crypto on some exchanges. As an illustration, let’s look at trading in Bitcoin/Litecoin (BTC/LTC) or Ethereum (ETH/BCH). It’s possible that you can swap a cryptocurrency pair directly without first converting it to fiat money if it’s supported.
Credit cards and other incentives, such as cryptocurrency awards, are also available from certain exchanges. This facilitates the usage of your cryptocurrency and, in certain cases, allows you to earn more coins for each transaction.
Cryptocurrency exchanges that are popular include:
Any of these platforms are great for trading crypto, but you should research and find the one that works best for you and your needs. It should be noted that some of these crypto trading platforms have a minimum deposit amount, and it varies between platforms.
If you don’t want to deal with a third-party broker, you may alternatively acquire your coins directly from other users on peer-to-peer exchange. Once you’ve signed up and verified your email address with one of these exchanges, you can start exploring currencies and prices that appeal to you.
There may be a variety of approved payment options, such as PayPal, gift cards, or wire transfers, to choose from when dealing with another individual. In many cases, you may complete deals for less money than you would pay to a broker.
If you use a peer-to-peer exchange and don’t have access to the exchange’s own wallet service, you’ll need to know your wallet address. In most cases, you may choose between a “hot” or “cold” wallet for your currencies.
There are a few options for peer-to-peer exchanges, including:
- HODL HODL
Apps for Investing
Some stock and option trading programs enable you to trade crypto as well. There are several instances where you aren’t truly buying the coins. Because the broker holds so much money, you’re essentially purchasing an IOU.
You can’t transfer your existing coins to your app account or withdraw them because many of these applications lack wallet functionality. Buying using fiat cash in your account balance necessitates selling your position and withdrawing the money if you want access to it.
It is possible to get a taste of bitcoin trading using these applications without really making a purchase. Examples of crypto-trading applications include Robinhood, WeBull, and SoFi. For day trading, WeBull and Robinhood were both included in our list of the top investment apps. On our list of the top brokerage accounts is SoFi.
If you’re interested in learning more, please visit our:
- An evaluation of WeBull
- The review of Robinhood
- Investing with SoFi
You may now buy cryptocurrency via PayPal’s app. Because of this, there are just two cryptocurrencies to choose from:
- Bitcoin Cash
To get started, all you need is a one-dollar deposit via PayPal. Paying with PayPal Cash or Cash Plus is required, though. In addition, you may use cryptocurrencies to pay for online transactions.
However, if you want to pay using cryptocurrency, PayPal will have to sell the cryptocurrency on your behalf in order to complete the transaction, thus this will be treated as a taxable event.
To get started, all you need is a one-dollar deposit via PayPal. Paying with PayPal Cash or Cash Plus is required, though.
In addition, you may use cryptocurrencies to pay for online transactions. However, if you want to pay using cryptocurrency, PayPal will have to sell the cryptocurrency on your behalf in order to complete the transaction, thus this will be treated as a taxable event.
Another option for purchasing cryptocurrencies is using an automated teller machine (ATM). 10,000 ATMs throughout the world enable you to buy cryptocurrency. ATMs that accept Bitcoin, Ethereum, and Litecoin are common, although more coins are available depending on the ATM location.
Most of the time, these ATMs stand-alone and resemble traditional bank machines. You may use a debit card to buy coins and have them transferred to your wallet at any time. If you use a certain ATM, you may even be given a pre-made wallet. Print off the wallet’s security keys in this scenario so that you may subsequently access the wallet.
Steps to Make Before Purchasing Cryptocurrency
- Invest just what you can afford. Volatility is a possibility with crypto due to its relative youth and status as an alternative asset. The lack of liquidity makes it difficult to get your money back in it. As a result, it’s critical to keep your investments within your means. Furthermore, new cryptocurrencies are constantly being released, making it impossible to predict which ones will take off or which blockchain platform will take hold. With so many uncertainties, it’s a good idea to avoid putting all of your money in one place.
- Order types are important to know. Don’t forget the sort of order you’re taking. Realize what your goals are, and then proceed accordingly. Additionally, find out if your order will be processed instantly or if it will take some time to process. An exchange transaction might take days to complete depending on the currency and network being utilized. Instantaneous transactions are possible for more popular market orders on big exchanges such as the New York Stock Exchange. You can also use a limit order, which caps how much you’re willing to spend at one time.
- Protect yourself from robbery and deception. Be aware of the sources and methods of exchange from which you obtain your data. Cryptocurrency fraud and theft have occurred in the past. Anyone who has access to your security keys has the ability to wipe away your digital wallet and you have no recourse against them. In addition, be on the lookout for investment frauds promising huge profits from specific crypto schemes.
- Make sure you’ve done your research on the market. Before you do anything, be sure you know what you’re getting yourself into. Understand the market and some of the underlying blockchain applications. Make sure you know why you’re investing in a coin before you buy it.
Today, it’s rather simple to buy and sell Bitcoin, and other cryptocurrencies, as well. All you need is a computer or a mobile app and a little money to get started.
However, make sure you comprehend the coins you’re purchasing and are aware of the hazards before you go. Make sure you don’t invest money that you can’t afford to lose. You can find out more about cryptocurrencies in our previous article, the beginner’s guide on crypto, which is a step-by-step guide covering everything you need to know.
Frequently asked questions
What is crypto purchasing power?
This is generally the amount of crypto that you can purchase, and is generally equal to your available to withdraw balance.
What is provisional buying power?
This is a line of credit that may be offered to you by the cryptocurrency trading platform that you're using. With this line of credit, you can buy crypto or fractional coins, despite not having enough in your available to withdraw balance.
What is instant buying power?
Instant buying power is the same as your provisional credit. It allows you to instantly to start buying or trading cryptocurrency on a platform.
What does it mean to have insufficient buying power?
You have insufficient crypto buying power when you have not been offered a line of credit, and your available to withdraw balance is not enough to cover the cost of buying crypto.