Сryptocurrency: Where to Buy

WhiteBIT
Published 14 February 2022
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Content

Today, there are many digital assets and purchasing options available. But how to start buying cryptocurrency, and what is the best way to buy crypto? Understanding the peculiarities can be challenging. We will try to help our readers prepare for the purchase comprehensively. Read this article to learn when, where, and how to buy crypto that fulfills your purposes.

How and where to buy cryptocurrency 

Purchasing any digital asset usually comes down to 3 main points:

  1. initial preparation, research;
  2. getting a wallet;
  3. purchasing crypto coins.

Let’s discuss them in detail.

How to start buying cryptocurrency: preparation and research

Although blockchains and virtual assets are already widespread, many crypto investors still do not fully understand how these technologies work and view them only as a way to make quick money. Digital money is volatile and unstable. Before you learn how to buy cryptocurrencies, you need to understand the processes in the ecosystem. Otherwise, you risk making poor investments.

How crypto works

Simply put, cryptocurrencies are digital assets that are used to invest in companies, pay for goods and services, as well as gain access to unique project developments. These assets are cryptographically protected. They are designed to eliminate the problems of traditional finances, including currency counterfeiting and double-spending.

Virtual assets are not physical money. They cannot be touched or mechanically damaged. These are non-copyable pieces of computer code. That is why crypto transactions are easy to identify and track – each digital “coin” is unique.

Digital money is not regulated by states or other governing bodies. They operate on the blockchain network, which allows for direct transactions between users. Blockchains are considered safe and reliable because the transaction information is not stored on a centralized server. Instead, it is distributed among the network nodes.

As mentioned earlier, digital assets have a variety of use cases. Before you learn how to purchase cryptocurrency, find out what crypto coins are, how they differ from tokens, and what these two have in common. For example, both coins and tokens are used for payments or investments, but token holders also get access to unique tools, products, and services of the developer company. There are cryptocurrencies backed by dollars, and there are gaming NFT tokens that get more expensive or cheaper depending on wins or losses in a game.

The best way to buy cryptocurrency is to be well-prepared. Thus, you need to know what you can do with the asset you are going to buy. You should differentiate consensus algorithms, technical standards, and types of cryptocurrencies. It is the only way to choose an asset that is fully consistent with your strategy.

Before you buy a new asset, define the goals of the developer company. This information is usually stored in a special document called white paper. In these documents, projects describe their crypto in detail, present their ideas and plans to achieve them, introduce the development team, indicate the dates of planned events, and more. The more detailed the white paper is, the easier it is to get the philosophy of the project.

Reading these documents will help you identify the asset’s strengths and weaknesses. If the asset is not new, read the whitepaper to see if the project has managed to achieve the planned goals. If the white paper is not available on any site, or it is difficult to access, the project might be a scam.

Choosing a wallet

You will need a special wallet for storing digital money. The wallet address will be used to buy crypto. All further operations will not be possible without one too. Treat your choice responsibly.

Crypto wallets are either hot (online) or cold (offline). They are protected by cryptographic keys. Offline wallets need to be connected to devices with Internet access to perform transactions. The rest of the time, the funds stored on offline wallets are not available on the network. Cold wallets are considered more secure than hot wallets that are constantly connected to the Internet.

Сryptocurrency: Where to Buy

A wallet should also suit your coins and investment strategy. For example, if you do not plan to trade often, you may choose a hardware cold wallet. And vice versa, if you are going to use crypto quite often, it makes sense to opt for a hot wallet that is always online.

Best ways to buy cryptocurrency

Digital assets have become a part of the modern world, and it is quite easy to buy them. The best ways to buy cryptocurrency include:

  1. direct purchase from the developer company;
  2. crypto brokers;
  3. crypto ATMs;
  4. P2P platforms;
  5. crypto exchangers;
  6. centralized exchanges.

Let’s see what their pros and cons are.

Cryptocurrency – where to buy

If you are looking for the bestplace to buy a new asset, consider purchasing directly from the developer. Getting coins in the early stages of project development has several advantages. Firstly, smart contracts in some ecosystems include automatic rewards for holding assets. You have an opportunity to start making profit from the very launch of the project. Sometimes, it is enough to buy a certain amount of crypto to participate in the project’s reward system. Secondly, if the project has been listed on exchanges recently, you will be one of the first to trade a new asset.

If the asset becomes popular and shows stability, you may think about staking. This is an interest-bearing digital money deposit. The system is implemented either by projects or by third-party platforms. For example, there are 50+ different SMART Staking plans available on our exchange.

Сryptocurrency: Where to Buy

When getting coins directly from the project, you significantly save on fees. However, the minimum purchasing amount can be huge. This model suits long-term investors who are more likely to use assets for staking or simply hold it hoping that the value will rise.

How to buy cryptocurrency safely

Buying crypto coins or tokens from a new, unknown project may result in a loss of funds. New companies arrive daily, and some of them are fraudulent.

To measure how reliable and promising an asset is, check its community and developer activity, as well as the goals and plans of the project. Each of these points requires analysis.

Promising projects should have a large user base that participates in development. Community activity is easy to track on social media. Twitter and Reddit are the first social platforms you should visit to read about the project. You will find official announcements, user discussions, reviews, and suggestions there.

Developer activity allows the project to keep up with innovations. With the growing popularity of blockchain, more and more related technologies are emerging. Both the development of unique innovations and the integration of products with existing technologies are time-consuming processes that cannot go unnoticed. Anyone can track the activity of developers on the GitHub platform. If the code is hidden or the activity is low, the cryptocurrency is unlikely to have high potential.

The goals and plans of the project are closely linked to the technical characteristics of the asset. Reading a project’s white paper is always a good idea. It allows you to review the company’s intentions and match it with the information you have found on social media and GitHub. Does the project fulfill its promises?

Where to buy crypto fast

If you do not have time to study white papers and official websites, there’s an option to turn to crypto brokers. These are highly qualified specialists who perform operations on your behalf for a certain fee. Finding a reliable crypto broker on the Internet is not that difficult.

If you want to do everything yourself but seek simplicity and swiftness, you may use crypto ATMs. These are ATM terminals designed to work with digital assets. They work pretty simply. You deposit money and receive cryptocurrency on your address (wallet). If you want to use such a device, please note that the fees are usually high.

How to buy and sell cryptocurrency profitably

To purchase a popular asset with a strong reputation and a stable price, you can use P2P platforms, crypto exchangers, and centralized exchanges.

Purchasing on P2P platforms is considered a profitable option because there are no intermediaries. Only the participants of the transaction are involved in the process. Moreover, profitable offers are not rare on such platforms because users set the prices of their assets themselves. If you buy on a P2P platform, do your best to analyze the users you are going to trade with. The most tempting offers are not always the best ones.

Where to buy and sell cryptocurrency

Crypto exchangers work just like fiat exchange services. The clients of these platforms buy and sell pretty quickly. There are a lot of exchangers available, so the rates may vary. As a rule, the better the rate, the higher the fee. Although this is not always the case, it is better to be vigilant all the time. Do not make purchases and sales before reading the terms of service. Also, make sure that the chosen crypto exchanger has a solid reputation, technical capabilities, and a big turnover.

Where to buy crypto coins: WhiteBIT

Looking for the safest place to buy cryptocurrency, consider our exchange. We use cold wallets, 2FA, anti-phishing software, white list addresses, KYC, WAF, and other technologies to protect users’ assets. On our platform, you can buy fiat and exchange it for the desired crypto, or you can buy it for other digital assets. Besides, there is an option to purchase coins on the Bitcoin Global P2P platform and transfer them to your WhiteBIT account via a WhiteBIT Code.

Conclusion

Selecting a crypto asset for investment requires a thorough approach. To prepare, you need to understand the technologies, plans, and capabilities of the project. Besides, you should get the right wallet. Always measure the pros and cons of several platforms to find the one meeting your requirements.

How to buy cryptocurrency on WhiteBIT?

  • Buy fiat and exchange it for the desired crypto.

  • Purchase one crypto for another crypto.

  • Buy coins on the Bitcoin Global P2P platform and transfer them to your WhiteBIT account via WhiteBIT Codes.

Where is the best place to buy cryptocurrency right after its launch?
Before making any investment, you should take several indicators into account. These include the activity of developers and community, the goals and plans of the project, and the technical characteristics of the asset.
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