How to Buy a Cryptocurrency: Beginners Guide

How to Buy a Cryptocurrency: Beginners Guide

The cryptocurrency market is living through difficult times in 2022. The first collapse happened in spring and was claimed as the beginning of crypto winter. The best colossal drop occurred in November when a famous FTX crypto platform revealed its financial problems. 

The golden rule of successful crypto investors says: buy crypto on the market drop and sell it when the price is rising up. So now is the best time to become an owner of some popular digital assets you could not afford at their all-time high. How to buy cryptocurrency? Every beginner trader asks this question. We decided to give you some tips in this article.

What is a Cryptocurrency Exchange?

Two main types of services where you can buy crypto:

  1. CEX (centralised)
  2. DEX (decentralized).

CEX is a platform that has management similar to a bank. There is staff working and keeping track of the quality of services and suspicious activities. CEX has registration and complies with the regulator’s requirements. Your data and funds are protected when working on a centralized cryptocurrency exchange. CEX offers a large number of trading tools and crypto pairs. Besides, it enables such advanced trading instruments as margin, futures, etc., and can lend funds to users. A centralized platform such as Binance, Coinbase, and WhiteBIT has impressive liquidity. 

CEX is the only reliable place to start working from scratch if you have not got any crypto coins yet. CEX lets you attach your bank card and buy digital assets with fiat currencies. And vice versa, you can convert your crypto to fiat and withdraw them to your bank card. 

DEX is a trading platform with no control and no safer guarantee. The funds move between users’ wallets and do not stay on an exchange. DEX does not require registration or verification. It offers a limited range of trading tools and usually a smaller amount of trading pairs supported. However, decentralized exchanges are also popular, mostly for small trade amounts.

If you are a beginner trader, it is advisable to start with one of the largest and most reliable CEX. We recommend WhiteBIT, which is suitable for novice users and offers an accessible interface mode. When you register and enter the trading section, you will see a calculator where you may enter the coin you want to buy and your fiat currency. The exchange will display the crypto price and the fee. If it suits you, pay the commission and receive crypto in a matter of seconds. 

Katherine Baldwin

Katherine is just getting her start as a journalist. She attended a technical school while still in high school where she learned a variety of skills, from photography to nutrition. Her enthusiasm for both natural and human sciences is real so she particularly enjoys covering topics on medicine and the environment.

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