Altcoins are a class of cryptocurrencies, which are not issued by any one of the popular fiat currencies that have backed conventional currencies, but by themselves as a token. It refers to any other digital currency that is distinct from Bitcoin – the current most popular crypto type in the world – and can also be referred to as alternative currencies.
While some overlap in terms of features and technical factors, they are still different from Bitcoin itself. Many people who get into trading crypto will go for bitcoin first, but there can be a lot of value in aiming for entirely different currency choices. But how do you buy them?
Joining an Exchange
Buying altcoins is easier than you think. You will want to start out by getting familiar with the crypto exchanges: platforms that are used to buy, sell, and trade crypto between users without requiring them to arrange trades one-to-one.
Exchanges are generally categorized by their features. They range from exchanges that are used for trading large amounts of crypto with a lot of liquidity, as well as those that are designed to be used for trading small amounts of crypto.
Of course, many exchanges are used for both, but it is a good idea to choose the platform with which you feel most comfortable, especially when you are just starting out. The best exchanges will have very low fees and minimal trading requirements and will allow you to buy crypto very quickly without feeling overwhelmed.
For crypto newcomers, it is important to note that most exchanges will want to verify your identity before allowing you to buy crypto. This is for good reasons, but it is also a bit annoying at first. Be sure to sign up ahead of time rather than trying to sign up right when you want to trade crypto – verification may take some time.
After identifying the kind of cryptocurrency, you want to buy – sites like Skrumble.com can be a good source of information about lesser-known currencies – you can try to buy some. To do this, you will want to search for your currency on an exchange and then start to arrange the purchase.
Note that not all exchanges carry each specific currency, so you will want to make sure that you are on an exchange where those currencies are available. You will also need to connect a crypto wallet if you have not already or use the built-in wallet on the exchange if it offers one.
You can buy crypto either through regular money or by trading other cryptocurrencies for it. Remember that cryptocurrencies will have fluctuating values relevant to one another, so you will want to look into the specifics of how much they are worth at the time you are trying to trade them.
Buying altcoins is fairly straightforward. If you have got a good sense of what it is like to shop on an exchange, you will probably be able to do the work yourself without much difficulty, even as a first timer. Just remember to take your time and make sure you understand what you are doing, especially if you are about to make your first crypto purchase.