Cryptocurrency caught the interest of many people because of its decentralized blockchain technology. This means that the system operates without being managed or controlled by a single entity, which gives it the benefits of minimal fees, transparency, and anonymity.
Some cryptocurrencies even take privacy a step further for consumers. With other cryptos, transactions can still be traced through the user’s public keys, which is valuable for spotting fraud and money laundering schemes. However, on the other side of the coin, people living in authoritarian regimes may need a digital asset that’s untraceable so they won’t get in trouble with their government.
Monero (XMR) is a cryptocurrency that’s perfect for people in the latter group. It has a private blockchain that makes it impossible for anyone to track a particular coin’s history. If you’re interested in this crypto, here’s a list of the best places to buy Monero.
Regardless of whether you’re investing in this digital asset for the future or a profit, here are some tips to follow on how to buy cryptocurrency like a pro:
- Compare Different Exchanges
While it’s best to start your cryptocurrency investing journey early, you also shouldn’t leap at the first opportunity and place your money on a particular coin impulsively. It’s wise to do your research and compare the different cryptocurrencies as well as the platforms that you’ll be using.
There are various cryptocurrency exchanges in the market today. Always compare the different features that they offer and see whether they work with your investment goals and needs.
The factors that you should check include:
- Fees and Prices – The absence of a governing entity ensures the low cost of cryptocurrency transactions. However, most exchanges have additional charges for the maintenance of their platforms, which is understandable. You should study the exchange rates they have and compare them with other websites to find the one that gives you more value for your fiat or real-world money.
- Security and Support – Look for news articles about the platform and check if they’ve experienced data breaches and theft. The exchange you choose must have strong defenses in place against cyber-criminals. Moreover, they must have a support team that’s online 24/7 to cater to the inquiries of their users.
- Local Restrictions – Lastly, you have to ensure that the website can accept payments and transactions from your geographical location. Signing up for an exchange that cannot operate legally in your area can make it challenging for you to withdraw your money.
- Know The Cryptocurrency’s Purpose
It’s also practical to read the cryptocurrency’s whitepaper to know why the developers created that digital coin and what their plans are for its future. Some programmed their crypto to act as a security token, which operates similarly to a stock. This means that anyone who buys a coin gets a share of the company. Meanwhile, other digital assets work more like a utility token, which can be redeemed in exchange for services on the blockchain.
As mentioned above, if you’re looking for a cryptocurrency that provides the ultimate privacy, you can opt for Monero. For those who want a coin that has a smart contracts platform, which is traceable and irreversible, you can choose Ethereum (ETH).
Cardano (ADA) also has a smart contracts feature. Plus, this crypto may get you more tokens for your fiat money because it’s still relatively new. Here’s a list of the best places to buy Cardano.
- Determine Its Supply And Circulation
Bitcoin (BTC) was announced to have a limit of 21 million. As of this writing, 18 million coins have been mined, which leaves roughly about 2 million more to be sourced. This can affect the cryptocurrency’s price, especially when all the tokens are in circulation.
Ripple (XRP), on the other hand, had already pre-mined 100 billion coins before it launched. However, the company that developed the system owns a significant chunk of the tokens.
You have to know how much the limit is and how many coins are currently in circulation to get an idea of the potential earnings you can have from that crypto.
- Find A Dedicated Crypto Wallet
You must also invest in a specialized cryptocurrency wallet to protect your digital assets. Find one that’s offline to make it more difficult for hackers to get a hold of your private keys. Of course, you have to be careful about bringing the hardware with you since you can’t disable it or retrieve the stored information once you lose it.
Conclusion
Buying cryptocurrency is a viable investment strategy regardless of whether you want to save for the future or profit from these digital assets. Follow these tips on how to purchase like a pro so that you can get more bang for your buck.
Looking for the Best Forex Broker? We trade at RoboForex. You can receive a rebates from each trade when registering using our partner link
