FUNDAMENTALS OF CRYPTO

How to Purchase Cryptocurrency

Purchasing crypto today is easier than it’s ever been. Adoption has accelerated fast over the past few years, and the barriers that used to slow people down are basically gone.

Our Quick DYOR Reminder

Before you even touch the crypto markets, lock this into your trading strategy: DO YOUR OWN RESEARCH (DYOR).. If you build your entire strategy around what someone else says, you’re basically outsourcing your losses. The fastest way to blow up your portfolio is to trust every loud voice on the internet.

We highly recommend you check out our full breakdown of “How to Do Your Own Research (DYOR)” here.

Once you have that stamped at the top of your to-do list, the next equally important decision is to figure out how you intend to approach the crypto space; Are you here as a long-term investor, or a short-term day trader? This one decision shapes every future decision you ever make. Your strategy, your time commitment, your psychology, even your tax obligations. Mixing the two is how people get wrecked.

It’s for your safety (and ours) that at this point we remind you to also research your local financial laws inside out. Consider talking to a financial professional about your individual circumstance. Crypto regulation is different in every country, and tax rules hit investors and traders in very different ways. One mistake can follow you for years. For Aussies out there, our “ATO Crypto rules” resource covers everything you need to know.

Choosing Your Entry Method into Crypto

To get into the crypto market, you need to decide on an entry method. Don’t worry, this is far easier than it sounds.. All you need to do is simply choose an exchange or broker that offers the most competitive rates (fees), & provides the best service that suits your goals. That’s it.

Crypto Exchanges

Exchanges are the most common form of on-ramp. They let you buy and sell a wide range of assets using either fiat or crypto. You’ll see two main types of exchange throughout your crypto journey:

Centralised exchanges are run by companies. They handle the order matching, the custody, and take a cut every time you execute a trade. Convenient, simple, but you’re trusting them with custody and access.

Non custodial exchanges let you trade peer to peer. Sellers set their own prices and you hold your own assets. Even when they’re run by a central operator, they get grouped into the wider DEX category because users keep control of their own funds.

We again highly recommend you check out our full breakdown of “Centralised Exchanges (CEX) VS Decentralised Exchanges (DEX)” here.

Crypto Brokers

Brokers are another route in. Instead of you placing orders directly on an exchange, a broker executes on your behalf, usually for a fee or commission. You might have also heard the term “OTC” before.. Well that’s exactly what this is. Their advantage is liquidity. Brokers can source deeper pools than a standard exchange, which makes them perfect for high volume buyers and sellers who don’t want to move the market.