If you are itching to get your hands on some cryptocurrencies but don’t know much about them, this is the place you can learn where and how to buy cryptocurrencies.
Cryptocurrencies are the digital alternative to mainstream currencies, which aims to make the exchange process faster and cheaper by storing ownership records in an encrypted ledger. For many new investors and traders, they are the future currencies of the digital world. To a few skeptics, they are nothing more than a pyramid scheme.
Judging by the slow but steady integration of cryptocurrencies in a wide range of marketplaces, it’s safe to say they are here to stay. Between 2017 and 2018, the market almost flew to the moon with the Bitcoin price reaching $20,000 in value. However, they soon faced a setback and the value dropped to $3,000. With a continuous bullish movement this year, it’s probably the right time to get into the market and own some of these assets. So, let’s find out how and where you can buy cryptocurrencies from below.
Where to Buy Cryptocurrencies
Unlike traditional currencies like dollars and pounds, the buying and selling of cryptocurrencies are a bit complicated. The internet has seen a massive surge of platforms offering the opportunity to buy, sell, exchange, or trade on different digital currencies; but not each of them is equally reliable.
eToro is a multi-asset platform, licensed by authorities like CySEC, FCA, ASIC, and others, that allows investors or traders to buy a great range of crypto assets including the most popular Bitcoin (BTC), as well as the alternative coins such as Ethereum (ETH), Ripple (XRP), Litecoin (LTC), etc. Using this platform, you can either trade in CFD (Contract for Difference), or buy and hold the actual assets.
IQ Options, on the other hand, doesn’t allow for owning and holding the actual cryptocurrencies. Instead, it offers traders to perform CFD trading, which is paired between cryptocurrencies or against the US Dollar. IQ Option is authorized by CySEC in Cyprus.
How to Buy Cryptocurrencies
To buy cryptocurrencies in any of the aforementioned platforms, you have to open an account with a valid credit or debit card and a permanent address. Once your account gets approved, you can just go to the crypto section of the platform and make a purchase.
To buy the actual currencies on eToro, you have to just avoid using leverages. Once bought, you can then exchange one currency to another or use them to perform supported transactions by moving them to the wallet. Anyways, as CFD trading allow both buying and selling of the underlying assets, be careful to choose the right option when performing a trade.
Both platforms also offer demo accounts with virtual money, an option you can use to learn about trading these assets without risking real money.