How to purchase cryptocurrency
Following on from Part 1 of our cryptocurrency article series which covered what cryptocurrencies are and how they work, in this article we'll be diving into what the current top 10 cryptocurrencies are, and how you can go about purchasing crypto. If you haven't had a read of Cryptocurrency: Part 1, we suggest doing so before taking in the information below, especially if you are new to the crypto arena.
There are more than 6,700 different cryptocurrencies that are currently traded publicly, with the total value of all cryptocurrencies coming in at around $1.6 trillion USD. Here are some of the current popular cryptocurrencies at this time.
Popular Cryptocurrencies
According to CoinMarketCap - a cryptocurrency data and analytics provider - the following are the 10 largest trading cryptocurrencies by market capitalisation:
Bitcoin = $1.42 trillion
Ethereum = $270.57 billion
Cardano = $56.52 billion
Binance Coin = $53.81 billion
Tether = $50.15 billion
Polkadot = $45.80 billion
XRP = $27.65 billion
Uniswap = $20.89 billion
Litecoin = $17.63 billion
Chainlink = $16.35 billion
All values listed in AUD. Data current as of March 18, 2021
How much are each of these cryptocurrencies worth?
Bitcoin = $75,717
Ethereum = $2,337
Cardano = $1.767
Binance Coin = $347.04
Tether = $1.282
Polkadot = $47.43
XRP = $0.601
Uniswap = $40.01
Litecoin = $264.71
Chainlink = $39.20
All values listed in AUD. Data current as of March 18, 2021
How do I go about buying cryptocurrency?
Investing in cryptocurrency isn't difficult but what it does take is some thorough self-directed research. We’ve put together 4 clear steps to outline how you can go about beginning your crypto journey.
Step 1: Firstly, you'll need to compare and choose an online exchange or trading platform. Every person has their own preferences and trading goals which will dictate which exchange they choose. Some people want the widest selection of coins, while others are looking for Australian-based and personalised customer-support, some want all the advanced trading features while some are just after the easiest way to buy cryptocurrency and let their investment grow. When choosing an exchange, keep the following things in mind:
Company authenticity and platform security
Ease-of-use
Fees, spreads and any hidden charges
Customer-support
Number of coins offered
Trading features
Educational content
Method of payment
The ability to buy coins direct with AUD (possible with most Australian exchanges)
Take your time, do your research, read customer reviews and look for an exchange that is upfront about who they are and the fees they charge.
Step 2: The next step is signing up. Once you’ve chosen the crypto exchange that suits your needs, signing up is usually pretty straightforward. Choose your username and password, fill in your personal information and set up 2-factor authentication (which gives your account an added layer of security). From there all you have to do is verify your email which will then prompt you to verify your identity (and potentially provide proof of residence). This can all be done in a few short minutes with a passport or another credible form of ID.
Step 3: Then you'll add your bank account and select you payment method. Once you've done this, you'll be able to make deposits into your account which are most commonly free of charge.
Step 4: Now that your account has funds in it, you are free to purchase any type of cryptocurrency you choose. Go to the buy or trade section of your chosen platform and select the cryptocurrency you want to purchase. Then, enter how much AUD you want to invest, or how much of the coin you want to buy, double-check the details are correct and confirm your purchase.
And that is basically it! If you do your research and compare exchanges before choosing one, you’ll be off to a good start. Take your time, make calculated decisions and never invest more than you can afford to lose.
For more information on cryptocurrencies, what they are and what to be cautious of, the Reserve Bank have an article that’s worth a read. Click here to read more.
The following information is intended for informative and educational purposes only and is by no means specific financial advice. The purpose of our articles is to illuminate different facets of the financial world, so that you can make your own informed financial decisions.
