How to Safely Buy Crypto in Today's Volatile Market

Did you hear? Nowadays, Bitcoin and the entire cryptocurrency sector are all the rage from Generation Z armchair traders to institutional investors. Everyone is hopping on the crypto bandwagon.

Of course, there were crypto enthusiasts around before it was cool to talk about blockchains and NFTs. Nowadays, however, it seems like everyone is on Team Bitcoin, Team Ethereum, and Team Ripple.

Whatever your cryptocurrency or protocol preference, you may be wondering how exactly you can purchase a virtual token in a safe and secure manner, especially in today's volatile market. 

Indeed, after the myriad of hacks, breaches, and DDoS incidents, it can be concerning where you put your money to get your digital hands on some digital coins.

How to Safely Buy Crypto in Today's Volatile Market

So, how do you safely buy crypto? Here is a guide on how to do so under present-day conditions:

1. Pick a Broker or Exchange

Many cryptocurrency exchanges have popped up in recent years. These are venues whereby buyers and sellers come together to trade digital currencies. 

Trading platforms function similarly to a typical self-directed brokerage destination to buy and sell cryptos. Ultimately, these outlets streamline the process because you do not need to mine specific coins to add them to your portfolio.

What are some of the top cryptocurrency exchanges and platforms today? For cryptocurrency specifically, your best options are:
• Coinbase
• Crypto.com
• Binance

For trading platforms that include crypto trading, you have lots to choose from:

• Robinhood
• Wealthsimple
• eToro

2. Choose Your Wallet

Do you have a wallet? No, not that type of wallet. A digital wallet.

When you are buying, selling, and trading crypt, you can have the option of holding a wallet. Of course, you can leave your crypto on an exchange, but this could leave you vulnerable to fraud and theft. 

So, it is always a good idea to possess a wallet. You have two options: a hot wallet or a cold wallet.

A hot one is when your wallet is stored online and is connected to the internet. This is the most convenient way. A cold alternative is a crypto wallet that is not connected to the internet, making it inaccessible. This is the safest option.

3. Purchase from a Bitcoin ATM

Believe it or not, if you type in a quick Google search of a "Bitcoin machine near me", you may be surprised to learn that there are many Bitcoin ATMs like Bitcoin4U in your neighbourhood. 

These Bitcoin machines function like an ATM: You can deposit money into your crypto wallet or withdraw funds by converting from Bitcoin to cold hard cash. It is safe to say that many crypto enthusiasts hardly ever drawdown from their accounts!

So, how does this work? Here is a step-by-step breakdown of the process:

• Ensure your cryptocurrency wallet is functioning.
• Locate a Bitcoin near me on a search engine.
• Scan your crypto QR code.
• Buy and receive your Bitcoins.

And that is all you need to do. Wait a minute. That's it? Yes! Suffice it to say, a Bitcoin ATM operates much like a typical bank machine.

4. Buy Crypto ETFs

In the United States, there is a lot of confusion and regulatory red tape surrounding exchange-traded funds (ETFs) exposed to Bitcoin, Ethereum, and cryptocurrency in general. 

North of the border, however, there are many investment funds giving you exposure to crypto. If you hold these ETFs in a tax-free savings account (TFSA), you do not need to worry about the taxman.

Here is a taste of the Canadian crypto-related ETFs:

• CI Galaxy Bitcoin Fund (BTCG.U)
• Purpose Ether ETF (ETHH.B)
• Purpose Bitcoin ETF (BTCC.B)
• Accelerate Carbon-Negative Bitcoin ETF (ABTC)
• 3iQ CoinShares Bitcoin ETF (BTCQ.U)

Also, there are reports that a new Bitcoin and Ethereum ETF will be released that offers a monthly payout, giving you a steady income for holding these investments.

5. Invest in Crypto Stocks

You can also acquire shares in companies that are heavily invested in Bitcoin and the underlying cryptocurrency technology. 

From mining to blockchain tech, there are many stocks to choose from to add to your portfolio. Like crypto ETFs, here are some equities to consider parking your money in as a long-term play:

• HIVE Blockchain Technologies Ltd. (HIVE)
• Coinbase (CB)
• Square (SQ)
• Hut 8 Mining (HUT)
• MicroStrategy Inc. (MSTR)

The cryptocurrency ecosystem – tokens, protocols, technologies, NFTs, and everything in this realm – will be the key driver of growth in the internet age – and beyond. There are hundreds or thousands of meme coins that only serve the purpose of pumping and dumping. 

However, many digital currencies still maintain a utility, whether it is to foster smart contracts or to enhance liquidity. 

It makes sense for every investor to possess some holdings in crypto, no matter how small. Even if you do not want to own a cryptocurrency directly, you can take advantage of the crypto-related investment funds.
Indeed, the world is your oyster when it comes to Bitcoin and the broader crypto industry.

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