What you need to know about buying cryptocurrencies
If the idea of buying cryptocurrencies comes to mind, it’s best to be well informed so you don’t lose your money. To help you, we’ve created this guide to outline the fundamental steps to consider when buying cryptocurrencies. Selecting a cryptocurrency purchasing platform is a crucial decision that can affect the security of your investments and the ease with which you can manage your digital assets.
Here are some essential criteria to consider when selecting a platform:
- Security :
- A platform should have robust security measures like two-step verification, cold storage of funds, and protection against DDoS attacks.
- It is also important to check if the platform has had security incidents in the past and how they were handled.
- Reputation :
- The reputation of the platform in the crypto community can give you an idea of its reliability.
- Read online reviews and participate in discussions on forums like Reddit or Bitcointalk to get feedback from other users.
- User interface :
- The user interface should be intuitive and easy to use.
- A good interface can greatly facilitate the management of your cryptocurrencies.
- Fees :
- Transaction, deposit and withdrawal fees must be reasonable.
- Compare fees between different platforms to find the best deal.
- Variety of cryptocurrencies :
- If you are interested in lesser-known cryptocurrencies, check that the platform offers a wide range of tokens.
- Deposit and withdrawal options :
- Make sure the platform supports your preferred payment method.
- Also check deposit and withdrawal limits, as well as processing times.
- Customer Service :
- Good customer service can be very helpful if something goes wrong.
- Check if the platform offers fast and professional support.
- Regulatory compliance :
- It is important that the platform complies with current regulations, especially in your jurisdiction.
- A regulated platform is generally considered more reliable and secure.
- Transparency :
- Transparency in operations and customer communication is a good indicator of reliability.
- Liquidate :
- High liquidity means you can buy and sell cryptocurrencies easily without affecting the market price.
- Additional features :
- Some platforms offer additional features such as integrated wallets, decentralized exchanges (DEX), lending/borrowing platforms, etc.
- Education and Resources :
- For beginners, a platform that offers educational resources on cryptocurrencies and trading can be beneficial.
These criteria will allow you to evaluate the different cryptocurrency purchasing platforms and choose the one that best meets your needs.
Where to buy cryptocurrencies? our advices :
The first thing to do when buying cryptocurrencies is to select the right platform that offers this. In recent years, however, the number of platforms offering this service has grown steadily. Indeed, choosing the best site is becoming increasingly difficult. But don’t worry, we’re here to show you the right way. Below are the most popular platforms of the moment:
- eToro: it is the number 1 regulated crypto broker in France. In addition, it is registered as a Service Provider for Digital Assets or PSAN. With this platform, you have access to over 80 cryptocurrencies. eToro has a mobile application that allows you to access all functions via your phone. Indeed, even if you are new to the field of cryptocurrency, you will have no difficulty in using it.
To invest in crypto, eToro offers a wide range of methods, namely, by credit card, bank transfer, PayPal, or other secure transaction service.
- Binance: it is one of the best crypto platforms. Like eToro, it is also regulated in France and registered as PSAN. Many traders use Binance for its seriousness and reliability. Besides buying cryptocurrencies, you can also enjoy many other features like saving, connecting with trading robots, etc.
- ZenGo: we can say that ZenGo is the most secure platform. With ZenGo you can buy, sell, store or save digital assets. With this site, you have around 80 cryptocurrencies available including Bitcoin, Ether… and stablecoins like USD Coins and Tether.
ZenGo’s big plus is that its portfolio is mega-secure and based on an innovative technology (multiparty calculation technology). And the latter is one of the most powerful tools designed to guarantee the protection of cryptocurrencies.
What you need to do to register on a platform
To register on an exchange site, first create an account. To do this, you need to fill in the field for username, e-mail address and password. Sometimes, it’s also possible to identify yourself simply by logging into your Google or Facebook account.
Then, to make sure you’re not a robot, there are a few steps to follow with questions you seriously need to answer. The platform then verifies your identity. This approach is necessary to comply with the regulatory authorities in force. Many crypto sites have set up a system to verify the identity of users, known as KYC or Know Your Customer. From now on, going through this step is mandatory to have access to the dedicated platform. Still in this way, you just have to upload your ID and on the crypto site side it may ask you to take a photo of yourself to scan your face and also to confirm that the person on the ID card or on the passport is you.
What about cash deposits?
Once logged in, you’ll have access to all your platform’s functionality modes. To make a crypto purchase, you need to start by funding your account. To do this, you can use your credit card, make a bank transfer, or choose another payment method valid for the site.
To avoid paying huge, exorbitant fees, opt for payment by bank transfer. To do this, you need to enter your bank details and select the amount you wish to deposit. After that, you make the transfer to the contact details displayed, and that’s all there is to it.
The crypto purchase stage
Once your account has been funded, i.e. your funds have been deposited on your exchange site, you can quietly buy cryptocurrency. To buy some, go to the trading section and search for the cryptocurrency you want to buy, Bitcoin for example. The latter can be available as a pair against a currency or as a stablecoin. If this is the case, you need to exchange your euros for stablecoins such as BUSD or USDT.
Once you’ve chosen an asset, determine how much to invest. You will then have information on the fees to pay, calculated as a percentage based on the amount of capital to be mobilized. Everything is clearly displayed, and you’ve got your cryptos all to yourself. At this point, you’re probably asking yourself the question, “Which cryptocurrency should I buy?” so know that it’s up to you. Before making your decision, first research the various assets, taking into account the projects you plan to carry out behind them.
Now that you have crypto in your wallet on your exchange site, you are led to take more secure solutions. Moreover, keeping your crypto in your platform’s wallet is not recommended, as it may be hacked and you may find yourself in a situation of insolvency. If this case ever happens, you will no longer have access to your cryptos.
To solve this problem, you can store your cryptos in a physical self-hosted wallet such as Ledger Keys or digital one like MetaMask.
Other ways to buy cryptocurrency
Several other sites allow you to purchase crypto and actually own it. More precisely, you can withdraw your crypto from your platform and store them on your real wallet such as Ledger or MetaMask if you prefer a digital wallet.
Bitpanda is a platform registered as PSAN and which allows purchases with more than 200 cryptocurrencies. You can in fact use Bitcoin, Ethereum, Binance, Solana, Avalanche, Shiba Inu, etc.
With Bitpanda, you have:
- Possibility of investing in crypto indices
- Possibility of making a recurring investment or DCA (possibility of monthly or weekly purchase for the same amount in euros of one or more assets)
This is a company dedicated to designing and marketing physical wallets for storing cryptocurrencies. It safely stores your cryptos while protecting them against hacks and certain thefts. Discover our Ledger magazine
PayPal does not yet allow you to purchase cryptocurrencies on its app. However, it is possible to use PayPal to fund your account on an exchange platform like eToro or Binance.
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