How to buy cryptocurrency?

To buy cryptocurrency, there are some steps required which include;

Step 1: Choosing a cryptocurrency exchange platform

There are many crypto exchange platforms where you can buy and sell cryptocurrency, the first step is deciding which of the platforms to use. Generally, you can choose between a traditional cryptocurrency broker or a cryptocurrency exchange

• Traditional brokers: A cryptocurrency broker is a firm or an individual that facilitates buying and selling of cryptocurrencies. They offer cryptocurrency prices to customers as set by the broker.

• Cryptocurrency exchange: This provides an online platform for buyers and sellers who trade cryptocurrencies with each other based on the current market price. There are many cryptocurrency exchanges to choose from like Binance, coinbase, Kraken, Gemini, and more. Each offers different cryptocurrencies, wallet storage, interest-bearing account options, and more.

  When comparing different platforms, consider which cryptocurrencies it offers, what fees they charge, their security features, storage and withdrawal options, and any educational resources. Sound knowledge of trading processes and cautious handling of cryptocurrencies are essential when trading on an exchange.

Step 2: Create an account

You don’t need all this if you are using a cryptocurrency broker. When you have chosen an exchange platform, the next step is to create an account. Provide your personal information and verify your identity. This usually involves providing a government-issued ID, a phone number, and an email address.

Step 3: Fund your account

After creating an account, you can add funds to it. Most crypto exchanges allow users to purchase crypto using fiat (i.e., government-issued) currencies such as the US Dollar, the Nigerian Naira, the British Pound, or the Euro using their debit or credit cards – although this varies by platform or another payment platform.

Credit card purchases of cryptocurrencies are not supported by some exchanges because they are considered risky. Some credit card companies don’t allow crypto transactions either. This is because cryptocurrencies are highly volatile and it is not advisable to risk incurring debt or paying hefty credit card transaction fees for some assets.

Additionally, certain platforms will accept wire transactions and ACH transfers. Each platform has a different set of acceptable payment options and processing times for deposits and withdrawals.

An important factor to consider is fees. These include possible transaction fees for deposits and withdrawals as well as trading costs. Fees will vary by payment method and platform, which is something to research at the outset.

Step 4: Choose the cryptocurrency to buy and place your order.

You can place an order via your broker or your exchange’s web or mobile platform. You can browse the exchange's offerings and choose from a variety of cryptocurrencies such as Bitcoin, Ethereum, and more. To buy cryptocurrencies, you can do so by selecting "buy," choosing the order type, entering the number of cryptocurrencies you want to purchase, and confirming the order. The same process applies to "sell" orders.

Always conduct your own research and comprehend the risks associated with purchasing cryptocurrencies. When making a purchase, be aware that cryptocurrency prices can be volatile and fluctuate rapidly.

How to store cryptocurrency

Once you have purchased cryptocurrency, you need to store it safely to protect it from hacks or theft.

Just as diversifying your investments can reduce your risk, spreading your crypto assets across multiple storage types may be a good idea. It can reduce your risk of losing everything if one of your storage options is compromised.

Crypto wallets are typically used to store cryptocurrencies. These physical wallets or software programs are used to securely store the private keys to your cryptocurrencies. Some exchanges enable you to store directly through the site by offering wallet services. However, not all brokers or exchanges will automatically offer wallet services.

There are two primary means of Storing cryptocurrency and they are;

• Hot wallet storage: These are crypto storage that is internet-enabled and use online software to protect the private keys to your assets. They offer a series of features, from storing, sending, and receiving tokens to managing and viewing all available tokens in one place. The primary benefit of using a hot wallet is its level of convenience. It is widely adopted because of the ease of transferring and receiving funds on demand. Common examples of hot wallets include coin base wallet, MetaMask, Trust wallet, Edge, and more. Hot wallet is also free to use unlike cold wallet but are vulnerable to hacks because they are internet-enabled.

• Cold wallet storage: These are offline and come in the form of physical devices such as a USB stick to securely store your private keys. A cold wallet offers more security benefits because it’s less possible to hack and is therefore less vulnerable to loss of digital assets. Cold wallet became more popular since the collapse of FTX, which was a large centralized crypto exchange that collapsed in November 2022, declared bankruptcy and reported an alleged hack that resulted in many users’ digital assets being frozen or lost.

  These wallets come as hardware devices, usually like a USB stick-costing $50 to $200. Hardware wallets and paper wallets are examples of cold storage wallets. The private keys of cold wallets are entirely offline which makes it more secure. However, cold wallets can be tricky to use, and if you're not careful, you might lose it.