It’s 2021, and Cryptocurrency is more popular than ever. One of the main reasons behind its popularity is that cryptocurrencies offer immense profits in the shortterm, making them an ideal option for investments, but it comes with their own risks. If you also want to buy Cryptocurrency, we can help you with it. In this Vodytech Guide, you will learn how to buy cryptocurrency in 2021. Let’s get started.
What is Cryptocurrency?
Let’s start with the very basic questions: What is Cryptocurrency? Cryptocurrency is basically the digital currency that you can use like regular currency, but the thing which makes it unique is that it’s controlled by any central authority. This means that the value of Cryptocurrency mainly depends on demand and supply.
How Many Cryptocurrencies are available out there?
Cryptocurrencies are pretty popular, and according to one estimate, there are more than 10,000 cryptocurrencies available out there, but the thing is that a large portion of them doesn’t have any real value. However, there are ones that have value, and according to one estimate, the combined worth of cryptocurrencies is more than $1.9 trillion, which is more than the GDP and federal reserves of most countries in the world.
What are some of the most popular cryptocurrencies out there?
When it comes to cryptocurrencies out there, there are tons of them out there, but these are some of the most popular cryptocurrencies out there.
- Bitcoin is arguably the most popular Cryptocurrency out there, with a market cap of more than 850 Billion USD. It’s also one of the most valued Cryptocurrency as it’s currently valued at over $46,000 per Bitcoin.
- Ethereum is another very popular cryptocurrency, and it’s the second biggest Cryptocurrency with a market cap of more than $390 Billion. It’s also the second-highest value cryptocurrency with a value of $3300.
- Cardano is one of the most popular cryptocurrencies, with a market cap of more than $75 Billion. It doesn’t have high value as the other ones on this list, but it’s pretty popular and can offer good returns without risking a lot of money.
Are Cryptocurrencies a Good Investment?
Cryptocurrencies have emerged as one of the most popular options for short-term and long-term investment, but like other investment, it also comes with its own risks.
If you have a good understanding of how cryptocurrencies behave, you can surely invest in them and can make huge profits. But, you should also note that if you are not familiar with how cryptocurrencies behave and you invest your money in the wrong Cryptocurrency, you can lose your entire investment in a day.
For example, if you take the example of bitcoin, it was trading at over $50,000 on 7 September 2021, but it was crashed to $45,000 within the next 24 hours, and investors lost $5,000 within a day. However, there are chances that Bitcoin will recover, and if it recovers, investors might get a good return on their investment.
At the end of the day, Cryptocurrency investment is surely very risky, but if you have the right information, you can surely make good profits on your investment.
How to Buy Cryptocurrency?
Now that you know about cryptocurrencies let us explain how you can buy cryptocurrencies. If you want to invest your money in Cryptocurrency, you can do it in 4 simple steps.
Step 1. Choose your Cryptocurrency Exchange
Like regular stocks, Cryptocurrencies also have their Exchanges where you can buy and sell your cryptocurrencies. When it comes to Crypto Exchanges, there are tons of them available, and their availability changes from region to region.
For example, if you want to buy cryptocurrencies from the US, the popular Crypto Exchanges are Coinbase, Gemini, Binance.US, and Kraken. These are the 4 Popular and most reliable Crypto Exchanges in the US.
Once you choose the Exchange, you will need to sign up and provide all the relevant documents to get approval for your account. While selecting the Exchange, make sure that the Cryptocurrency in which you want to invest should be available on the selected Crypto Exchange.
Step 2. Connect your Payment Method
Once your account is approved, the next step is to connect your Payment Method with your account. Most Crypto Exchanges support debit/credit cards for payments, but they also offer other methods such as Bank deposits and other regional payment options.
Once you select the payment method, it’s also important that you check the fee associated with each payment method. Usually, the fee for debit/credit cards is lower than Bank deposits, and you also get money in your account quickly as compared to a bank deposit. Once you add the payment method, the next step is to add the funds to your account.
Step 3. Buy your Cryptocurrency
Once you have funds in your account, you can use them to buy Cryptocurrency. While choosing Cryptocurrency, make sure that you pick the one with a good reputation and endorsed by other sellers in the community.
We would also recommend you to join the Cryptocurrency communities on Facebook and Reddit for crypto signals which will basically provide you information about which cryptocurrencies are ideal for investment, and you can use that information to get good profits.
Step 4. Store your Cryptocurrency
Most Crypto Exchanges come with built-in Wallets, but the thing is that they are prone to hacking, and we wouldn’t recommend storing your cryptocurrencies on an exchange. Alternatively, you can use a mobile Crypto Wallet to store your cryptocurrencies. There are tons of great cryptocurrency wallets available, and you can pick the one which suits you. If you are interested, you can check these guides where we have shared the Cryptocurrency Apps (Including Crypto Wallets) for Android and iPhones.
That’s all, folks. In this guide, you learned how to buy Cryptocurrency in 2021. We also shared the popular crypto exchanges and some tips which you can use while investing in cryptocurrencies. If you have any questions, please let us know in the comments. Also, check this guide where we have shared the best Cryptocurrency Apps for Android.