Everyone seems to want to buy cryptocurrencies these days. Unlike regular stocks, digital currencies trade 24/7 on the global market. If you want to diversify your portfolio and buy some Bitcoin, Ethereum, or XRP, you have different ways to do so.
Let’s first understand how transaction are made in crypto, a cryptocurrency is a unit of measure that can be transferred from one party to another but never duplicated
Most cryptocurrencies, according to experts, should be avoided. Cryptocurrency values change by the hour, and this is especially true for lesser-known currencies. Even more established cryptocurrencies, such as Ethereum and Bitcoin, are subject to volatility.
You can exchange U.S. dollars for Bitcoin or other digital currencies through crypto exchanges platforms. There are hundreds of cryptocurrency exchanges you can use to buy crypto online, but a few of the more popular ones are Coinbase, Gemini, and Binance.
Here’s how to trade cryptocurrency, as well as an overview of where you can buy it and the various financial vehicles you may use to gain exposure to it.
Choose your exchange platform
If you want to purchase and sell cryptocurrencies, the first step is to find a platform that allows you to do so. In general, you have the option of using a standard broker or a specialised cryptocurrency exchange.
- Traditional brokers: a few online brokers provide the means to purchase and sell cryptocurrencies, as well as traditional assets such as stocks, bonds, and ETFs. These platforms often have lower trading fees but fewer crypto capabilities.
- There are several cryptocurrency exchanges to select from, each with its own set of cryptocurrencies, wallet storage, interest-bearing account choices, and other features. Asset-based fees are charged by several exchanges.
When evaluating platforms, keep in mind factors like supported cryptocurrencies, security features, fees, storage and withdrawal choices, and instructional materials.