How to Buy and Sell Cryptocurrency; A Beginner’s Guide by Kris-Anita Enyinnaya

For beginners looking to buy and sell cryptocurrency, without a straightforward guide, the process can be overwhelming. The world has changed significantly over the past few years at an extremely fast pace, culturally, politically, geo-politically, technologically, and most of all, financially.

The Bitcoin and cryptocurrency markets are hitting up and people are starting to pay attention more than ever. However, many haven’t dipped their toes in yet because the idea of buying and selling crypto seems all high up.

You hear questions like how do I buy Bitcoin? How do I buy crypto safely and securely? Buying and selling cryptocurrency is not as daunting as it may seem, you just need the right guide. Luckily you’re in the right place.

We’ve outlined a step-by-step guide on how to buy and sell crypto in this article. From selecting a platform to executing transactions, we’ll cover everything you need to know to buy and sell cryptocurrency confidently.

How to Buy Cryptocurrency

Buying cryptocurrency can be just as easy as downloading a crypto exchange app like Zypto, signing up, linking a bank account, selecting crypto and amount, and tapping the buy button. Now let’s break this down one after another.

Choose a Crypto Exchange

To buy cryptocurrency, first, you need to choose a crypto exchange. What is a crypto exchange? A cryptocurrency exchange is a platform that connects buyers and sellers of cryptocurrency. It works similarly to a stock exchange, allowing investors to buy and sell their digital assets.

Crypto exchanges operate on digital marketplaces such as mobile apps or via desktop functions similar to e-brokerages. They also facilitate crypto trading, providing users with an array of trading and investing tools. 

Now that you understand what a cryptocurrency exchange is, it’s important to pick a reliable exchange. There are a myriad of exchanges out there and some are designed to steal users’ funds or personal information. You should check the exchange’s reputation and track record so you don’t fall into the wrong hands. 

Aside from reliability, you should also look out for exchanges with easy-to-navigate interfaces, suitable for your level of experience. Also, keep an eye on fees. Look for exchanges with relatively low transaction fees and no hidden fees. Here are some recommendations to choose from.

Zypto App

The Zypto App is an easy-to-navigate entry point to crypto. Not only is this crypto exchange user-friendly, but it also has an array of robust features that enable your crypto trading. This app also grants users access to exclusive privileges: special offers, cashback opportunities, and exclusive deals tailored for $ZYPTO holders. 

Coinbase

• Transaction Fees: 0.00% to 0.60%
• Currencies: 200+
• Minimum Deposit Or Purchase: $2
• Trade Limits: Yes

Coinbase is one of the best picks for beginners because it offers strong security, ease of use, a large number of supported cryptocurrencies, and advanced trading options. Keep in mind, however, that Coinbase’s default wallet is a custodial account, and doesn’t give total control of your account.

Kraken

• Transaction Fees: 0.00% to 0.40%
• Currencies: 200+
• Minimum Deposit Or Purchase: $1
• Trade Limits: Yes

Kraken is a top choice for experienced traders, as it offers advanced order types and supports margin and futures trading. It also supports a large number of cryptocurrencies. Kraken Pro charges some of the lowest fees in the crypto asset exchange landscape.

However, Kraken is not available in all U.S. States. It also has limited account funding options.

Crypto.com

• Transaction Fees: 0.00% to 0.075%
• Currencies: 350+
• Minimum Deposit Or Purchase: 1 euro
• Trade Limits: Yes

Crypto.com provides a comprehensive digital asset trading and investing ecosystem for users. It supports over 250 cryptocurrencies plus a wide range of cryptocurrency products. Crypto.com, however, is faulted for poor customer support

Gemini

• Transaction Fees: 0.0% to 0.40% for active trader, 1.49% for most transactions on regular platform
• Currencies: 80+
• Minimum Deposit Or Purchase: Varies
• Trade Limits: Yes

When it comes to a strong security framework, Gemini stands out. This crypto exchange has robust security protocols, is SOC 2-certified, and insures user funds. It’s also a highly liquid exchange.

Gemini charges high fees on many trades and supports fewer cryptocurrencies than many competitor crypto exchanges.

Cash App

• Transaction Fees: 0.75% to 3%
• Currencies: 1
• Minimum Deposit Or Purchase: $1
• Trade Limits: Yes

Cash App is a Bitcoin-only exchange. It allows users to seamlessly and securely buy, sell, and store Bitcoin from their smartphones. This exchange excels for its easy-to-use interface. It also functions as a wallet, letting users store their money easily on the platform. 

As a Bitcoin-only exchange, you can’t trade other cryptocurrencies on Cash App. This can be a huge drawback for investors who want to diversify their investments. Users are not only limited when it comes to managing their wallets but on deposits and sales as well.  

Crypto Exchange Vs. Crypto Brokers

Just like a crypto exchange, crypto brokers act as an intermediary between the trader and the market. A crypto broker can be a company or an individual crypto broker that assists traders in buying and selling different cryptocurrencies.

Sometimes, crypto brokers provide a platform for traders to buy and sell cryptocurrencies at a price set by the broker. The broker will typically take a commission or fee for each transaction. They could also offer extra services, like providing trading advice and market analysis to investors. Robinhood and SoFi are two of the most well-known crypto brokers.

Although brokers often charge higher fees than decentralized crypto exchanges, they tend to be a smarter choice for beginners. They’re undeniably convenient; You get to buy and sell crypto at the price set out by the broker, making trading much easier compared to an exchange.

Create and Verify Your Account

Once you’ve decided on a cryptocurrency exchange or broker, you can sign up to open an account. Usually, signing up for an exchange is straightforward. You just need to provide your basic details and for some platforms, verify your identity. For identity verification, the platforms may ask you to submit your passport, or driver’s license or upload a selfie to prove your appearance matches the documents you submit.

The verification process is an essential step designed to detect any kind of fraud while keeping to federal regulatory requirements. 

Fund Your Account

When you’ve successfully created an account, link your bank account, PayPal, or other similar accounts to your crypto account. This will enable you to transfer funds from your bank account to buy crypto. 

Some platforms provide alternative funding options. This includes making a payment with your debit or credit card or authorizing a wire transfer. If you already own cryptocurrency, you can use it to buy another crypto, if that option is available on the exchange. 

Depending on the exchange you’re working with and your funding method, you may have to wait a few days before you can use the deposited funds to buy cryptocurrency. Keep in mind that you may be charged an exchange fee, depending on the platform, what you’re buying, and how you’re buying it. Ensure to review these details carefully.

Place Your Cryptocurrency Order

Once there is money in your account, you’re ready to buy crypto. At this point, you should have a cryptocurrency to buy in mind. Enter the ticker symbol for the crypto you want to buy as well as the amount of crypto in the space provided. 

A ticker symbol is an abbreviation used to uniquely identify tokens and projects.

If you’re buying Bitcoin, for example, the ticker symbol is BTC, and Ethereum is ETH. When you’ve entered the crypto you want to purchase and the amount, click the buy button to approve the purchase. 

Store Your Crypto

After purchasing the cryptocurrency, the next step is to secure it. Depending on the type of wallet you own, the crypto can be automatically stored on the exchange or you can be moved to a separate storage place.

Crypto wallets that are attached to the exchange are known as custodial wallets. Using a custodial wallet outsources the complexities of managing your wallet to a third party that brings some expertise to the table. You don’t have to keep track of your private keys as all the information is right there when you log in.

However, if you decide to store your crypto yourself, you choose between a hot wallet and a cold wallet. Hot wallets are internet-based wallets, which makes them an easy storage option and risky at the same time. Cold wallets do not need internet connectivity to operate. 

They’re offline storage and can’t be accessed by anyone who doesn’t have a physical device. However, they do take more effort to use. Read more about crypto wallets and how to set up a crypto wallet here. This knowledge will help you make an informed decision on which wallet is best suited for the type of investment you have in mind.

How to Sell Cryptocurrency

There are different methods for selling cryptocurrency; through a crypto exchange service, a cryptocurrency wallet app, peer-to-peer(P2P) trading, and more. Each method has its unique processes and considerations. As such, the best method to sell cryptocurrency depends on your priorities, convenience, control over funds, transaction fees, or anonymity.

Through a Cryptocurrency Wallet App

Cryptocurrency Wallet apps are digital platforms that let crypto holders store and manage their assets. In addition, crypto wallets allow users to sell various cryptocurrencies directly to fiat currency within the app. To sell cryptocurrency through your wallet;

• Open the wallet app and, after importing your cryptocurrency, select the ‘sell’ option.
• Choose the amount of cryptocurrency to sell.
• Confirm the transaction and transfer funds to your linked bank account.

Selling Crypto Through a Cryptocurrency Exchange 

Crypto exchanges are designed to facilitate the buying, selling, and trading of cryptocurrencies. Through an exchange, you can send your cryptocurrency to a specified address, and receive fiat in your bank account. When it comes to buying and selling cryptocurrencies, centralized exchanges stand out for reliability, liquidity, and fast order-matching.

Here are steps to follow to sell your crypto through an exchange;

• Select the cryptocurrency you want to sell.
• Choose the currency you’d like to receive and enter the amount (either in the form of local currency or cryptocurrency).
• Review the order, then add your wallet address and click Continue Complete the sale process by entering your bank details and sending your cryptocurrency to the address provided.

Peer-to-Peer (P2P)

The peer-to-peer method involves direct transactions between individual crypto holders, bypassing traditional exchanges, and allowing traders to enjoy anonymity and more control over your assets. This method also offers a variety of payment methods. To sell cryptocurrency through the P2P method, follow these steps;

• List your cryptocurrency for sale or browse buyer listings on a P2P platform.
• Agree on a price and payment method with the buyer.
• Transfer your cryptocurrency to escrow until payment is confirmed.

Conclusion 

Buying and selling cryptocurrency can be daunting if it’s your first time. However, when you’ve mastered the ropes, you’ll find that it’s an easy process. Thankfully many crypto exchanges offer a user-friendly interface that helps first-time users navigate easily. 

For example, you may find things like ‘buy’ or “sell.” This makes the entire process less complicated even if you’ve never bought or sold crypto before. However, if you get stuck at any point, be sure to seek help from an experienced person.

Whether you’re a newbie or a master in the art, the Zypto App is a handy option for selling and selling cryptocurrency. Its easy-to-navigate interface makes it inviting for new users. Advanced trading features make it suitable for veteran crypto traders. It’s an all-in-one solution for every crypto transaction.

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