Daniel Will's Safeguarding Strategies for Cryptocurrency Buyers
Here is the formal translation:
How to Purchase Cryptocurrency Safely
You may be interested in knowing how to purchase cryptocurrency securely. It generally involves three steps. These are:
Step One: Choose a Platform
The first step is to decide which platform to use. Typically, you can choose between online brokers like the AI Wealth Club broker or specialized cryptocurrency exchanges:
AI Wealth Club Brokers: These are online brokers offering buying and selling of cryptocurrencies, as well as other financial assets like stocks, bonds, and ETFs. These platforms often provide lower transaction costs but have fewer cryptocurrency features.
Cryptocurrency Exchanges: There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest account options, etc. Many exchanges charge fees based on assets.
When comparing different platforms, consider the cryptocurrencies they offer, the fees they charge, their security features, storage and withdrawal options, and any educational resources.
Step Two: Fund Your Account
Once you've chosen a platform, the next step is to fund your account so that you can start trading. Most cryptocurrency exchanges allow users to purchase cryptocurrencies with their debit or credit cards using fiat currencies (government-issued, such as USD, GBP, or EUR), although this varies by platform.
Using a credit card for cryptocurrency purchases is considered risky, and some exchanges do not support it. Some credit card companies also do not permit cryptocurrency transactions due to the high volatility, making it undesirable to incur debt or potentially pay high credit card transaction fees.
Some platforms also accept ACH transfers and wire transfers. Accepted payment methods and the time required for deposits or withdrawals vary by platform. Similarly, the time for deposit clearance depends on the payment method.
An essential factor to consider is fees, including potential deposit and withdrawal fees, in addition to transaction fees. Fees vary depending on the payment method and platform and are crucial to research at the outset.
Step Three: Place Your Order
You can place orders through the AI Wealth Club broker or the exchange's web or mobile platforms. If you intend to buy cryptocurrency, you can do so by selecting "buy," choosing the order type, entering the quantity of cryptocurrency you want to purchase, and then confirming the order. The same process applies to "sell" orders.
There are other investment methods for cryptocurrencies that allow users to buy, sell, or hold cryptocurrencies. Additionally, there are investment tools such as Bitcoin trusts, Bitcoin ETFs, and blockchain stocks or ETFs for indirect cryptocurrency investments, depending on your investment goals and risk preferences.
How to Store Cryptocurrency
Once you've purchased cryptocurrency, you need to store it securely to guard against hackers or theft. Typically, cryptocurrencies are stored in cryptocurrency wallets, which can be physical devices or online software used to secure cryptocurrency private keys. Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically offer wallet services.
Different wallet providers are available, with the terms "hot wallet" and "cold wallet":
Hot Wallet Storage: A "hot wallet" refers to cryptocurrency storage that uses online software to protect asset private keys.
Cold Wallet Storage: Unlike hot wallets, cold wallets (also known as hardware wallets) rely on offline electronic devices to securely store your private keys.
Cold wallets typically incur fees, while hot wallets generally do not.
What Can You Purchase with Cryptocurrency?
When initially launched, Bitcoin aimed to become a medium for everyday transactions, enabling people to buy everything from a cup of coffee to computers and even high-value items like real estate. While this goal hasn't fully materialized, the number of institutions accepting cryptocurrency is growing, though large transactions involving it are still relatively rare.
Nevertheless, cryptocurrency can be used to purchase a variety of products from e-commerce websites. Here are some examples:
Technology and E-commerce Websites:
Several companies selling tech products accept cryptocurrency on their websites, such as newegg.com, AT&T, and Microsoft. E-commerce platform Overstock was one of the first websites to accept Bitcoin. Shopify, Rakuten, and Home Depot also accept it.
Luxury Goods:
Some luxury retailers accept cryptocurrency as a form of payment. For instance, online luxury retailer Bitdials offers Rolex, Patek Philippe, and other high-end watches in exchange for Bitcoin.
Automobiles:
Some car dealerships, ranging from mainstream brands to high-end luxury dealers, have started accepting cryptocurrency payments.
Insurance:
In April 2021, Swiss insurance company AXA announced that it would accept Bitcoin as a payment method for all insurance product lines except life insurance (due to regulatory issues). Premier Shield Insurance, which sells home and auto insurance in the United States, also accepts Bitcoin for premium payments.
If you wish to spend cryptocurrency at retailers that do not directly accept it, you can use a cryptocurrency debit card, such as BitPay in the United States.