Welcome Friends,
Buying and selling cryptocurrency can be somewhat confusing. There are many different exchanges, tokens, wallets etc. Below I breakdown a simple tutorial on how to purchase and exchange cryptocurrency from a centralized exchange. As always, please do your due diligence with each and every protocol you use. This is in no way financial advice.
Thanks and have a fantastic day!
â BJ
Find a Cryptocurrency Exchange You Trust:
First Off, What is a Cryptocurrency Exchange? It is a place where buyers and sellers can exchange fiat currency (physical, ex. U.S. Dollars) for cryptocurrency.
Choose an exchange you trust and visit the website or app to create an account.
Create and Verify your New Crypto Account:
âCreate Accountâ and fill in all applicable fields.
Confirm and verify your email address.
Followed by providing a mobile number, receiving an authentication code and providing the code to the exchange.
Finally, verify your identity by providing the additional information requested & a most likely a valid I.D.
Connect to A Payment Option & Transfer Funds:
Once your account is confirmed and set up, you will need to link a payment method in order to transfer dollars to the exchange for crypto.
đ NOTE - Generally, the two most used payment options are to add a bank account or a debit card. Connecting a bank account usually allows instant deposits for buying/selling on the exchange. A debit card may require an additional I.D. and a potential fee percentage of each transaction.
Purchase Cryptocurrency of Choice & Place Order:
Now that you have transferred dollars into your account, choose the cryptocurrency you would like to purchase and place an order.
Thats it! You are now the proud new owner of decentralized currency. It will automatically be stored in your âwalletâ in your new crypto exchange account.
đ NOTE - In order to trade fiat for crypto in most centralized exchanges, each transaction will charge a small fee. Below is a breakdown of fees on the three exchanges mentioned above:
đ ON THE HORIZON: Next week we dive into setting up a crypto wallet and the difference between non-custodial vs. hosted wallets. Thank you for reading and please feel free to provide any feedback, comments or concerns!