Cryptocurrency has brought something into this world that seems to be able to compete with traditional finances, which is already a sufficient reason for cryptocurrency being worth your attention. Nowadays it is already used as a currency in a wide range of fields. You can buy any sort of goods and services, starting with Chinese tea, and ending with web hosting (example https://crypto-vps.com). To benefit from the advantages that you can get from cryptocurrency, there are basically two main steps you need to do: find a goods vendor or a service provider that accepts cryptocurrency payments and acquire a sufficient amount of crypto to fulfill your purchases. While the first step depends on the good or service you are looking for, the second one can be broken down to a universal algorithm, that we are actually going to present to you in the article that follows.
Acquiring cryptocurrency: a step-by-step guide
Step 1. Understanding cryptocurrency and its advantages
If you are new to cryptocurrency, it will be helpful to figure out, why you actually want to use it. Crypto has a bunch of advantages over traditional currencies due to its decentralized nature, including pseudonymity, speed, security of transactions, and independence from national institutions. Do research to find out more.
Step 2. Choosing a cryptocurrency
Figure out what cryptocurrency is the most suitable for your current needs and interests, considering its popularity, exchange rate, the technology behind the coin, and its real-world applications. A good point to start can be Bitcoin and Ethereum, as they are the most widely used and accepted coins. Another option can be some stablecoin, like Tether (USDT), whose exchange rate is stable and as near as possible to corresponding fiat currency.
Step 3. Setting up a crypto wallet
Your cryptocurrency needs to be stored somewhere, namely in a specialized crypto wallet that you need to specifically create. The procedure of creating a wallet isn’t hard, you just have to follow the instructions of your wallet provider. However, you have to figure out first, what type of wallet you want, as this is a question both of security and convenience. You can choose online wallets, mobile wallets, desktop wallets, and hardware wallets, that can be either “hot” or “cold”. Hot wallets that can be available both on a desktop PC and on a mobile device, store security keys online. This is a pretty convenient option, but creates more options for hackers to steal your data.
Another kind of wallets is cold wallets, which store your crypto security keys on your devices, erasing them from any external servers, and can be also presented in the form of dedicated hardware devices, and even in the form of paper. These wallets are less convenient since you have to have your physically stored keys around each time you want to use your wallet, but at the same time, they offer the ultimate level of security as the only way to access your wallet is to have that very physical piece of hardware you keys are stored on.
Step 4. Purchasing crypto
Once you’ve created and set up your digital wallet, you can directly move on to purchasing the currency. There are various ways to do it, that include exchanges, peer-to-peer platforms, and even ATMs. Research and find the way that is the most convenient for you and follow the instructions on buying crypto provided by it. Since you are new to cryptocurrency, using popular cryptocurrency exchanges Coinbase, Binance, and Kraken is probably the most valid option, as they have an extensive user base as well as detailed instructions on how to make each step. The general procedure includes setting up your account, verifying your identity, and linking a payment method, such as a bank account or credit card.
Step 5. Keeping your assets safe
Make sure your assets are safeguarded well. Use strong, unique passwords for your wallet and exchange accounts, enable two-factor authentication, and keep your holdings in a cold hardware wallet as long as they make up a solid sum.
Step 6. Paying with cryptocurrency
Once you have acquired your cryptocurrency assets, it’s time to use your assets.
First, find a retailer that offers goods or services you need with an option to pay with crypto. Go to their website, choose the goods you need, and move on to the checkout.
Now, choose the currency you want to pay with and make the transaction by sending the crypto from your wallet to the wallet of your retailer. At this stage, you have to be sure that you insert the right wallet address, since there will be no way to reverse the transaction if you make a mistake.
Congratulations, now you know how to buy anything for cryptocurrency. As you have seen, the procedure is rather transparent and the main point is to be careful with your assets and follow some basic security guidelines to make sure no one else gets access to crypto. Now, it’s your turn to act, good luck!