How To Purchase Crypto: Step By StepOct 13, 2022
Step By Step Guide to Purchasing Crypto
In a world of high inflation, fiat currency is seemingly less attractive by the day. Cryptocurrency provides a unique approach to asset-backed monetary values that has the potential to surpass the efficacy of the current economic landscape, eventually. We have deviated from the gold standard to money that is not backed by anything rather than numbers in a book. Its peers verify cryptocurrency, and every transaction is recorded in the blockchain with its unique identifier.
Many see the potential benefits of owning cryptocurrency but are extremely confused by the methods of acquiring it. Purchasing cryptocurrency assets is simple and easy, provided you are armed with the correct knowledge.
This guide will help you make your first crypto purchase by breaking down the process into bite-sized steps.
Let's get started.
1. Open a MetaMask Wallet
Much like any other currency, cryptocurrency needs to be stored somewhere. Although we have gotten used to bank accounts and brokerages, digital assets require a place to be "housed" as well. The way that this can be done is via a "crypto wallet."
A wallet does not physically store your assets but uses the same approach as a financial institution. It provides unique codes and identifiers to access the assets held within. MetaMask wallets are trendy, especially for beginners, as they are added as an extension to your browser and are easily accessible. They also connect with various other systems, such as centralized and decentralized marketplaces, which we will discuss below.
Furthermore, wallets have built-in functionality that allows you to purchase cryptocurrency directly if you need it quickly, with the most popular being Bitcoin (BTC) and Ethereum (ETH).
How To Open a MetaMask Wallet
- Step 1: Navigate over to the MetaMask website.
- Step 2: Click on the "Download" button at the top right of the screen, right next to the word "build." This will help to add the MetaMask wallet to your desktop or as a Chrome extension.
- Step 3: Create an account. When you first select to download, it will ask if you already have a secret phrase. If not, the second choice will prompt you to create an account. Select "Yes, let's get set up" by pressing "Create a Wallet."
- Step 4: As with many software programs, it will provide you with the terms and conditions and your account creation. Remember that you must create a strong username and password, as this will house your monetary assets. It is always recommended to read the terms and conditions before creating
- an account.
- Step 5: Your wallet is now created, and you will receive a "seed phrase." This is similar to a bank PIN and access code all-in-one, and you should keep it in a safe location. It can be tough to reset the seed phrase. Make sure to write it down offline, so it cannot be hacked. Store it in a secret and safe location.
- Step 6: Your wallet is now created and ready to be funded with the cryptocurrency of your choice.
2. Purchase Your Cryptocurrency
Now that you have your wallet, you can purchase digital assets, including cryptocurrency. For beginners, Ethereum is generally recommended, as it can be used for a multitude of purposes, chief of which is to purchase NFTs How to Purchase an NFT
The most popular way to purchase cryptocurrency is on a centralized exchange, similar to a foreign exchange or stock trade. One of the largest exchanges is Coinbase, so we will detail the guide below, but this can be used for any exchange you prefer.
Open Your Coinbase Account and Purchase ETH
Step 1: Register for a Coinbase account. Coinbase provides a complete set of instructions here. You will sign up, enter your email/phone number, and receive a notification to verify your username and password. Navigate to the link above for an interactive guide.
Step 2: Once your account is created, you can purchase ETH. Click "Buy & Sell" on the home tab of the Coinbase website, and select ETH. Here, you will be prompted to fund your account. Coinbase provides a step-by-step guide at this stage, but it is recommended to fund it with a debit card or bank transfer if you are a beginner.
Step 3: Once the funds have been transferred, you will have a short time to confirm the rate at which you're purchasing the digital currency. If more time has passed, you can click "refresh" to get a new quote.
Step 4: Think about storage. Coinbase will prompt you to store your digital assets on the platform, but luckily, you just created a MetaMask wallet. Continue reading to learn how to link and keep ETH in your wallet.
3. Fund Your Wallet
For easy access to your ETH and other digital assets, it is best to keep your cryptocurrency inside your wallet rather than on any exchange, which can slow down the speed and accessibility of your funds. The best way to do this is to withdraw your ETH balance from your Coinbase account into MetaMask.
Putting It All Together
Step 1: Open your MetaMask wallet using the extension you downloaded earlier.
Step 2: Select "Account" in the middle of the page, automatically copying your address to your clipboard.
Step 3: Follow the steps here to withdraw from your Coinbase account.
Step 4: Paste your MetaMask wallet address when prompted. You will be provided with a transaction ID to check on the status of your transfer. It can take time for your funds to reflect correctly in your wallet.
Congratulations! You now have ETH in your wallet. ETH is the second-largest token on the market, but it is poised to be one of the most significant digital assets in the WEB3 landscape. ETH will be one of the primary currencies with which to make purchases and sell certain services in the metaverse. The largest NFT marketplace, OpenSea, uses ETH.
Non-fungible tokens are unique digital art and assets that can be purchased only through the blockchain. Their value has increased considerably since release. For more information on how to purchase your first NFT with ETH, click here.
For more NFT basics check out our NFTs 101 Course.
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