(Bitcoin, Ethereum, Cardano, etc)
In order to profit from the cryptocurrency market, you will need to buy units of Bitcoin, Ethereum, Cardano, or any of the other cryptocurrencies available. There are many different kinds available. All have different costs per unit, usually expressed per United States dollar. For example, on January 1, 2021, 1 Bitcoin was worth $29,000+. Luckily, you can buy a fraction for less money.
Bitcoin, (and indeed all cryptocurrencies), are subdivided into fractional pieces. One Bitcoin cent, 0.01BTC, would be worth 1/100th of the going rate, or about $290. You could buy that much, or even less, depending on your budget.
To buy a cryptocurrency, you will need an account on an exchange. Similar to a bank or a stock brokerage, an exchange lets you put money on deposit that you can use to buy crypto. The exchange allows you to buy and sell various types of crypto. There are over 8,000 available on the normal markets. Each exchange lists a number of these for buying and selling by members. Most exchanges handle the top-ranked cryptocurrencies.
The major crypto exchanges include:
- Crypto.com – For more information about this exchange, click here.
- Binance – the largest exchange by daily volume as of January 2021
- Binance USA – American residents only
Notice that the list has Crypto.com as the first entry. This exchange is perhaps the easiest to use. They offer good connections to bank accounts and to debit and credit cards. They make the crypto buying experience as simple as possible. They also offer members the option of setting up a Visa debit card connected to the crypto account. Note that this feature is only available in Australia, Singapore, Europe and Canada, (January 2021).
Some of the exchanges do not offer the ability to convert fiat currency to and from cryptocurrency. To use them, you must first obtain Bitcoin, Ethereum, etc., elsewhere and send it to the target exchange.
Binance USA was established in 2019 for the benefit of American residents. This exchange monitors the current regulatory environment as it applies to residents of the United States. As a result, some cryptocurrency available in other countries may not be present on Binance USA.
Prices of cryptocurrency were current as of January 1, 2021. Prices fluctuate all the time, sometimes wildly. Major currencies such as Bitcoin, Ethereum, Cardano, etc., are usually more stable. Various market forces may affect even these, however, resulting in daily changes of plus or minus 10% or more. You are advised to avoid entering the crypto market with funds that you cannot afford to lose.