fbpx

PURCHASE | INVEST | TRADE

THINK OF YOUR FUTURE

KACIEBUSINESS

HOW TO PURCHASE, TRADE AND INVEST IN CRYPTOCURRENCY?

KACIEBUSINESS

To buy, trade, and invest in cryptocurrency is as simple as signing up for an Amazon account. Cryptocurrency has been very exciting to many investors worldwide for years, mainly because of its technology and its high potential return on investments. 

 

Cryptocurrency is a digital or virtual currency that operates on a decentralized network called blockchain technology. This network is controlled by computers and not by a central entity such as a bank or government. 

 

The high volatility of this market has created many opportunities for those looking to trade and invest in price movements.  However, despite its popularity in the financial and investment world, many people do not know how to buy cryptocurrency, the most traded Bitcoin, Ethereum, and Ripple. Here in this post, we will walk you through how to buy, trade, and invest in cryptocurrency as a beginner. 


HOW TO PURCHASE CRYPTOCURRENCY?

The process of buying and selling cryptocurrency is straightforward. To conduct a cryptocurrency transaction, in this case, on the Bitcoin network, users must first open a bitcoin wallet. This wallet will provide the user with a private key and a public key, which are long strings of numbers and letters linked through the network algorithm’s mathematical encryption. 

 

The public key is the user’s digital signature. It is the key that appears on the blockchain ledger to locate where transactions are deposited and withdrawn. It is, in other words, your encrypted identification that you will use to conduct your bitcoin transactions. 

 

The private key, however, is the encrypted key for authorizing the transaction. It is the secret key or your password to your bitcoin wallet. Below is an example of a private and a public key for bitcoin currency. 

KACIEBUSINESS



OPEN A BITCOIN WALLET

A bitcoin wallet is where you will store your bitcoin currency. You can compare your wallet with your bank account in the same way you store fiat or traditional currencies (JMD, USD, JPY, etc.). 

 

The wallet you need will depend on the cryptocurrency you want. For example, if you want to buy bitcoin, you’ll open a bitcoin wallet to store your bitcoin. If you want to buy Ripple, you’ll open a ripple wallet to store ripple.

 

However, some wallets store multiple cryptocurrencies. Exodus and blockchain.com, for example, are software wallets that can store BitcoinEthereumLitecoinDashEOS, and more. 

 

There are 5 types of cryptocurrency wallets that you should know, and they are; 

  • Hardware wallet
  • Paper wallet
  • Web Wallet
  • Mobile Wallet
  • Desktop wallet.

 

You must choose a highly secure wallet because if your cryptocurrency gets stolen from your wallet, you will never get it back. 

 

The most secure wallet is a hardware wallet because your digital currency is stored offline. A great hardware wallet is Ledger Nano S. It is super-safe and costs around $80. It stores NEO, Bitcoin, Ethereum, Bitcoin Cash, and many  ERC-20 tokens.

 

Now that you know where to store your cryptocurrency, the next step is to find out where to buy digital currency and how to pay for it.



OPEN A CRYPTOCURRENCY EXCHANGE ACCOUNT
KACIEBUSINESS

After you’ve opened a wallet, the next step is to open a cryptocurrency account with an online marketplace, called an exchange to purchase bitcoin and other cryptocurrencies.

 

Cryptocurrency exchanges are similar to platforms that traders use to buy stock. Digital exchanges are online platforms that let you exchange your local currency for cryptocurrency and vice versa—for example, U.S. dollars (USD) for Bitcoin (BTC) and BTC for USD. Most exchanges offer wallet capabilities for users, but it is not their primary function; therefore, it is not recommended that you keep your cryptos on an exchange for a long period. It is best to transfer your bitcoin and any other digital assets to a secure wallet. 

 

To purchase bitcoin and any other digital assets, most exchanges accept payment by bank transfer or visa debit and credit card, and some of them also accept PayPal. They charge a transaction fee of around 1-4%. 

 

Further, before you can buy cryptocurrency, most exchanges will ask you to complete the following steps for security purpose; 

 

  • Personal information to register yourself (full name, email address and cell phone number, etc.);
  • To verify your identity — you normally need a passport/driving license;
  • Then you are asked to set up 2-Step Verification. This helps to keep your account secure and protected from hackers. 

 

Once your account is set up, you can start buying cryptocurrency on the exchange. As a beginner, I recommend using these exchange platforms below as they are easy-to-use and quick to set up. They are well-established and secure, but your due diligence should be exercised when choosing a cryptocurrency exchange.

  • Coinbase
  • Coinmama
  • CEX.IO 
  • Etoro
  • Binance

 

You can go here for more options to purchase bitcoin and altcoins.

 

 

HOW TO TRADE CRYPTOCURRENCY?

Since you have now opened a wallet and a verified exchange account to trade on, you can now fund your account to do the basic trading of buying and selling cryptocurrency using limit, stop, and/or market orders.

 

When trading, you can: 

  • Trade dollars to crypto, US dollars to Bitcoin (BTC/USDT), or Ethereum to US dollars ETH/USDT).
  • Trade crypto to crypto, Bitcoin to Ethereum (BTC/ETH), or Ethereum to Ripple (ETH/XRP).
 

Cryptocurrency trading is similar to stock and forex trading, as in, traders can trade the daily or weekly up and down the volatility of the market. Traders can use futures contracts and binary options strategically and potentially profit from a cryptocurrency going down in value. Cryptocurrency traders can also profit from a buy and hold trading strategy. 

 

There is no charge for canceling limit orders when trading cryptocurrency on a full-featured exchange if the price doesn’t reach your target.  Market orders, however, aren’t reversible. 

 

TRADING VOLATILITY
KACIEBUSINESS

Cryptocurrency is one of the most volatile markets. You can profit big and lose significantly on up and down short-term price movement.  In 2017, 1 Bitcoin went up to almost USD 20,000.00 and after plunged to USD 3,000.00.  Today, the price fluctuates at USD 15,000.00 at the time of writing this. That’s how volatile the market can be.  

 

TRADING TIPS

Since cryptocurrency is highly volatile, here are few important tips to help you increase your profit margin and minimize your losses. 

 

  • HAVE A TRADING PLAN 

You must have a clear purpose for getting into the cryptocurrency trade. Whether your purpose is to day trade, scalp, swing trade, or auto trade, you must have a trading plan. Big whales control the cryptocurrency market, meaning traders who have huge capital in the market, so the slightest mistake without a plan will make you lose profit to these big whales fast. 

 

  • FOCUS ON NEWS 

Cryptocurrency short-term trading swings are very sensitive to relevant news. News such as government regulations or the hacking of a cryptocurrency exchange, prices tend to drop significantly. However, if a huge company announces using digital currency, like bitcoin, prices climb quickly. If you’re aware of any news and can react wisely, you’ll have the edge over the market.

 

  • FOCUS ON TECHNICAL ANALYSIS

History has a habit of repeating itself. The price charts of a currency tend to move in patterns. If you learn to build your technical, analytical skills to predict price movements, this will give you the edge you need to turn your trades into profit. 

 

  • MANAGE YOUR RISK

Invest an amount that you can afford to lose, and don’t be greedy. Invest wisely to earn and build. High trades require more tolerance.  

 

  • DIVERSIFY 

It is wise to take a diversified approach to trade cryptos. The cryptocurrency market is unpredictable, especially because the market is relatively new. At any time, the market can come crashing down. Even the most popular used coin, in this case, Bitcoin, can drop in price extremely fast.  Therefore, diversify your portfolio in different altcoins and ERC-20 tokens

 

Also, you can diversify your risk by looking into other investments such as stocks, real estate, ETFs, etc. 

 



HOW TO INVEST IN CRYPTOCURRENCY?

KACIEBUSINESS

Investing in cryptocurrencies can be an interesting part of your portfolio, but as mentioned, make sure to diversify your investments with other holdings. Also, you can seek a good financial advisor that can advise you on how to diversify your assets, or you can visit a Robo adviser to assist you with asset allocation and financial guidance. 

 

Investing in cryptocurrency, like Bitcoin, is similar to investing in stocks, except cryptocurrency is more volatile because of its daily swings. Here are the steps to invest in Bitcoin from the beginning:

 

  1. Open a Bitcoin Wallet
  2. Open an Exchange account that allows crypto investments
  3. Deposit funds from your bank into the Exchange account.
  4. Buy bitcoin (you can buy bitcoin in decimal fractions, instead of buying it for thousands of dollars) using deposited funds (cash balance).
  5. Later sell the bitcoin for a profit gain. Funds are returned to your cash balance.

 

The main difference with stock is for step four, you buy BTC instead of stock.

 

Another way to invest in cryptocurrency is through crypto lending and saving. You can earn up to 12% on your account by saving your cryptocurrency.

 



CRYPTO LENDING AND SAVING

Crypto lending is a great way investors can earn money on their crypto-assets and interest by investing in crypto-backed loans. This is where investors lend fiat or cryptocurrencies to other borrowers in exchange for interest payments. 

 

Lending and borrowing cryptocurrencies are gaining huge popularity in the market and can be a great investment option for your portfolio. Before, the only option was to hold your cryptos and hope for a bear market to gain profit, but now you can save your cryptos and gain interest, just like, if it was in a bank account. A crypto savings account could be a way for you to increase your rate of return dramatically.

 

Since many investors have a long-term mindset, the idea of letting your assets generate a return regardless of price appreciation is appealing to many investors.

 

HOW CRYPTO LENDING WORKS?
KACIEBUSINESS

To start the process is very easy and can break down into three steps:

 

  1. Create an account with one of the loan platforms and deposit funds to your investment account
  2. Invest in secured loans 
  3. The borrower (or the platform) repays the principal with the accrued interest back to your account. 


HOW TO EARN INTEREST ON CRYPTO SAVINGS ACCOUNT

To earn interest in crypto, Bitcoin and stablecoins, follow these simple steps:

  1. Sign up and verify your account with a crypto savings platform such as NEXO
  2. Select Bitcoin, crypto, or stablecoin to deposit to your account. 
  3. Transfer crypto to your NEXO wallet address  
  4. Earn compound interest on Bitcoin, crypto, or stablecoin. 

Below are some of the best lending and saving platforms. I chose these based on important factors such as ease of use, popularity, reputation, available digital assets & stablecoins, insurance, interest rates, fees, security, and customer support.

 

INVESTMENT PLATFORMS

INTEREST ON STABLE COIN (e.g. USDC)

INTEREST ON CRYPTO COIN (e.g. Bitcoin)

RATINGS

WEBSITE

KACIEBUSINESS

3.14%

2%

4/5
KACIEBUSINESS

Up to 12%


Up to 5%

4.6/5
KACIEBUSINESS

1.25%

1%

3.8/5


6% to 12%


4.5%

4.4/5

BUILD YOUR KNOWLEDGE

4.5/5

Ivan on Tech Academy is the world’s best Crypto & Blockchain learning platform for newbies, entrepreneurs, and investors. Ivan On Tech Academy was launched in 2017 by Ivan Liljeqvist and Filip Martinsson in Stockholm, Sweden. Ivan and Filip studied computer science together at KTH Royal Institute of Technology. Thereafter, their passion for programming, blockchain, and cryptocurrency led them to start Ivan On Tech Academy. 

 

Today Ivan On Tech Academy is the leading Online university for blockchain, cryptocurrencies, and programming. The platform has trained and educated over 20,000 students and has created top courses for students to become top professionals for the job market. Their courses range from introductory courses on Blockchain, Bitcoin, and programing to Smart Contract Programming, Bitcoin, and Blockchain Business Masterclass. They provide hundreds of assignments, quizzes, on-demand video courses, homework, and programming challenges.  As a student, you will have access to the following;

 

  • Graduation Certification 
  • Individual Support & Coaching 
  • Instant access to monthly releases of new courses 
  • Access to the student community 
  • Monthly Livestream Webinars 

 

However, to gain access to all courses, you’ll have to get a premium or professional plan. Their basic plan is good for complete beginners, but to get real insights into the space or gain opportunities for employment or business ventures, the upgrade is way better. 

 

Visit the Academy and learn more. 

TOP EXCHANGES TO PURCHASE BITCOIN AND ALTCOINS

OPEN A CRYPTOCURRENCY EXCHANGE ACCOUNT

4 Responses

  1. Well, I’m blown away by your site. You make cryptocurrency easy to understand and offer a wealth of advice. I’m writing this outside so at first I didn’t see the pages listed on the top, thinking this was a one page site. You might make the page links a bit brighter for your older audience members. But I do want to compliment the look and feel of the site as well as the free information you provide. Great job! 

    Brien Lee

  2. Some years ago I tried to buy some bitcoins and it was complicated. But now that I am researching again, I see that many of the se platforms that were closed to the crypto idea, have openned up. One of them was paypal. It was imposible to buy cryptos with PayPal. I even remember that there was a way through a platform in which you could buy tokens for SecondLife. But then they closed that platform and there was no way to use PayPal to buy cryptos.

  3. A very in depth article on Alt currencies, thank you for the information. 

    With Bitcoin now trading around $60,000 and Ethereum and Dogecoin and others making significant upward moves lately  they certainly make savings accounts and term deposits with banks look absolutely miserable. 

    Already some bank chiefs are making noises about Altcoins being a “threat” to peoples savings and wanting government to “do something”, and we know banks have a fair bit of clout within the inner circles of government.

    I think if you own some Bitcoin or Ethereum or any other coin you are in a better position to profit than trading it. I would not be borrowing to trade them that’s for sure. Particularly when some one with a large following on Twitter, can manipulate share prices to such an extent, that some hedge funds lose Huge amounts on their trading accounts.  

Leave a Reply

Your email address will not be published. Required fields are marked *

KACIEBUSINESS

Kacie Social is for members around the world to connect, network, and build. It is a social platform like any other. You can follow and unfollow a member, share information, create groups, send private messages, get notifications, and much more. Check out KacieSocial features here and become a member.

COMMUNICATION

Share information with members and get notifications when a member post. 

NETWORK

Stay connected with members of interest by following their profile. 

MESSAGES

You can send and receive private messages from members of the community.

Receive the latest news, videos and posts

Subscribe To Our Newsletter

KACIEBUSINESS is an educational platform and does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. KACIEBUSINESS has advertising relationships with some of the offers listed on this website. KACIEBUSINESS does attempt to take a reasonable and good faith approach to maintaining objectivity towards providing referrals that are in the best interest of readers.  KACIEBUSINESS strives to keep its information accurate and up to date. The information on KACIEBUSINESS could be different from what you find when visiting a third-party website. All products are presented without warranty. 

Copyright © 2020 kaciebusiness.com  All rights reserved.