CryptoCurrency: What's all the hype?
The world simply can’t stop talking about the rise of cryptocurrencies like Bitcoin Cash (BCH), Bitcoin (BTC), Litecoin, Ethereum, or a brand new ICO. Even your friends and family want in on the action. Cryptocurrencies have taken the media industry by storm. You can’t read an article or watch a news program without hearing the word “Bitcoin”. Every day a new story comes out about a man who bought bitcoin, forgot about it, and is now a millionaire. Financial news outlets cover cryptocurrencies more frequently than they do emerging markets. So why all the hype?
Cryptocurrencies, such as Bitcoin, are speculated to be the millennials version of gold. Since there is only a limited supply on the market, when a large number of people want to by a cryptocurrency, the price goes up. In 2017 alone, the price of one Bitcoin has soared from $400 to over $19,000, dwarfing the return of almost any other asset you can possibly invest in. Bitcoin isn’t the only crypto increasing in value. Many of the second-tier cryptocurrencies such as Litecoin, Ethereum, and Ripple are increasing in value by 8-10x in a matter of weeks. Let’s face it. People have a fear of missing out. People also want to get rich quick. This creates the perfect storm for the price of popular cryptocurrencies to continue to increase in value over time. Meanwhile, technology and acronymn's like SHA256, Scrypt and Proof of Stake are tossed around freely, making it difficult for the average lay person to cut through the jargon to understand what differentiates each currency. As a result, cryptocurrencies that aren't very strong end up popular on social media outlets like facebook. It’s easy to see why people are going crazy for crypto coins, but how can you get in on the action?
How Do You Buy Cryptocurrency?
Buying cryptocurrency seems complex; however, the team at Reliable Coin is here to simplify and demystify the process. There are many ways to purchase popular cryptocurrencies such as Bitcoin. Which route you take is completely up to you and depends greatly on how much you are investing as well as how much security you require. It also matters how easily you want to access your coins. Are you looking to invest long term? Perhaps you’re trying to use cryptocurrency for everyday transactions? These details matter and will ultimately decide how you choose to buy cryptocurrency.
Buy using an Exchange
One of the easiest, beginner friendly ways to buy coins is through a cryptocurrency exchange. Whenever you buy an asset such as a stock, bond, foreign currency, or cryptocurrency, you can choose to use an exchange. What exactly is a crypto exchange? An exchange is a third-party platform on which an asset is trading between participating individuals. Before you can understand how a cryptocurrency exchange works, let’s look at a more common example such as buying or selling a stock…
Person A has an account with a popular stock brokerage company or exchange such as Scottrade, TD Ameritrade, Vanguard, etc…Person A wants to buy shares of Apple stock, so he logs into his account and purchases the shares on his exchange from another person who is looking to sell shares of Apple. The exchange, such as Scottrade, handles the transaction. When this transaction occurs, Person A does not actually have the physical shares of Apple he purchased. The brokerage, or exchange, keeps the shares on their books for Person A until he wants to sell them again. This is how almost every stock, bond, or currency is traded worldwide.
Buying cryptocurrency through an exchange is exactly the same as the example above; However, popular stock brokers and exchanges such as Scottrade or TD Ameritrade, don’t let users buy and sell cryptocurrency. In order to purchase cryptocurrencies, such as Bitcoin or Litecoin, you must sign up for a popular exchange that allows users to buy and sell coins. The Reliable Coin team has reviewed almost every cryptocurrency exchange on the market to help people choose the right option for their specific buying and selling needs. Make sure to check out our detailed exchange section for more information.
Save CryptoCurrency Exchanges
Exchanges allow anyone to quickly and easily move currency from one form to another, including regular fiat money and virtual blockchain based cryptocurrency.
Buy Using A Wallet
While you can't technically buy cryptocurrency using a wallet, you can use them to store your digital coins. There are many types including hardware wallets, online wallets, desktop wallets, and mobile wallets that you can use via your iphone or android device. Which type you choose is completely up to you.
Unlike purchasing cryptocurrency through an exchange, if you transfer your coins to a wallet, you actually own and hold the currency. This is preferred by many as it enables you to take advantage of “forks”, whereby a crypto such as Bitcoin splits in two. This is very similar to a stock splitting.
Hardware wallets and paper wallets enable users to store their cryptocurrency offline. This is viewed by may to be the most secure way to buy since it is impossible for hackers to gain access to your cryptocurrency wallet. The downside is that if you lose your wallet, or it gets stolen or damaged, you lose all of your coins. Not a place you want to be.
While there are many popular hardware wallets on the market the top three are Ledger, Trezor, and KeepKey. We recommend using these three brands as they have the most support from within the community. Online wallets and mobile wallets are much more user-friendly and attracting for beginners. While there is the risk of a hacker gaining access, the ease of use makes these types of wallets extremely popular. If you are looking to actually spend a cryptocurrency to buy good and services, having a mobile wallet is almost necessary. It’s pretty much the same as using Apple Pay or Samsung Pay or paying with a normal credit card. You simply use your mobile wallet app on your phone, and viola, your organic steak is purchased at Whole Foods.
Keep Your CryptoCurrency Safe & Secure
Whether you're interested in storing your currency in the cloud, on your desktop, on a hardware wallet, a paper wallet or in your brain, make sure you keep your cryptocurrency secure by following our guides.
Buying Cryptocurrency with a Credit Card, Debit Card, or Paypal
Many people are interested in purchase digital coins using easy payment methods such as a credit card, debit card, Paypal , cash, or even gift card. In order to buy cryptocurrency such as Bitcoin or Litecoin using these payment methods, you must use an exchange that allows you to buy in this manner. Some companies charge fees to process and deliver your cryptocurrency to you via these payment methods. Always do your research and check what fees may apply. Usually larger, well known exchanges will have the lowest fees, but this is not always the case. Reliable Coin has reviews of popular cryptocurrency exchanges which outline what payment methods they accept, associated fees, and even details related to withdrawal limits.
If you are looking to buy bitcoin using cash, there are a few options. First you can utilize a bitcoin ATM which will allow you to deposit cash and then withdraw your bitcoin to your wallet. While this seems easy in theory, there are few bitcoin ATMs around the world. If you are lucky enough to live by one, this could be an easy option for buying cryptocurrency. The second option is using a local bitcoin finder such as locabitcoins.com. This is a popular website that connects people who want to sell bitcoin for cash with users who which to buy. Make sure to check our full Local Bitcoin Review if you’re looking to buy bitcoin using cash or via a bank account.
Current Market Capitalization (BTC)
Current Market Capitalization (All Crypto)
Notable Countries Supporting Crypto
South Korea (Not Including Derivatives)
United States of America
Notable Countries Against Crypto
The last and most complex way to acquire bitcoin and other popular coins is to mine them. Should you mine cryptocurrencies? Well, it depends on everyone’s unique situation. To mine cryptocurrency you first must determine if it is legal in your country to do so. Although is it currently legal in most countries, its always a safe bet to double check first. Assuming it’s legal, you next have to calculate if it’s profitable. Mining cryptocurrency requires expensive hardware including a graphic card. People often refer this hardware as a “mining rig”. Before you invest in a cryptocurrency mining rig, make sure to check our bitcoin mining calculator to ensure you’ll actually make money from mining. The cost of electric and hardware may outweigh your potential profits, so make sure to use a calculator first. Don’t want to invest in hardware or buy your own rig? No problem! There are many cloud mining companies out there that will allow you to use their hardware in order to mine for yourself. These cloud miners usually charge a monthly or daily fee since you are essentially leasing their equipment from them in order to mine for cryptocurrency. When using a cloud mining software, make sure to research your pool. A mining pool is essentially a group of people that pool resources together in order to be able to verify transaction on the block chain and make money. It’s is very difficult to buy crytpcurrency via mining if you aren’t participating in a good mining pool.
What Cryptocurrency Should You Buy?
Once you understand if you are going to buy your coins through a exchange, using a wallet, or via mining, the next decision is which cryptocurrency are you going to buy.
The internet is filled with so called “experts” or “gurus” who have their own guides and proprietary trading algorithms they want to sell you. Investing in cryptocurrencies is risky, so try to make it as simply as possible for yourself.
Picking the right obscure digital coin that will make you a millionaire is extremely difficult. If you’re just starting out, only buy the top cryptocurrencies by market cap. These include Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Ripple (XRP). Buying these coins may not deliver the highest profit, but they will most likely present the least risk.
All cryptocurrency prices are driven by supply and demand. Normally speaking, the coins with the most volume or highest market cap, are coins that people want to buy. The higher volume of demand for a coin, the easier time you will have finding someone to buy your coins from you in the future.
With so many options, how does anyone know what to buy?
Buying cryptocurrency and learning how to buy coins can be confusing. The Reliable Coin team is here to answer any questions and help you along your journey into the world of digital coins. Don’t miss out on the opportunity of a generation.
Our mission is to educate those looking to buy cryptocurrency and help them choose the best options by providing in depth coverage, guides and tools to successfully buy, sell, exchange, trade and HODL cryptocurrency. At the end of the day, cryptocurrencies are here to stay, so if you buy from an exchange, using a wallet, or mine for the coins yourself, rest assured you’ll be glad you did.