The post How to Buy Altcoins in 2024 by Caden Pok appeared first on Benzinga. Visit Benzinga to get more great content like this.
You can buy altcoins on Kraken, eToro, Coinbase and Robinhood!
With the rise of Bitcoin in 2024, many investors have turned their attention towards altcoins for potentially greater profits. Tokens ranging from Fetch.ai (FET) to dogwifhat (WIF) are examples of altcoins that have outperformed Bitcoin. These tokens present opportunities for profitability and trading. However, the diverse range of projects can make it difficult to decide on a token to buy and purchase the tokens. Let’s take a look at where and how to buy altcoins in 2024, as well as some key characteristics to consider when making a purchase.
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Understanding Altcoins and the Market
While many investors no longer consider Ethereum to be an altcoin, it’s still worth mentioning as the best risk-adjusted investment behind Bitcoin. Ethereum isn’t an altcoin though – that would be its native asset, ETH. A native asset is a cryptocurrency that is required to transact on a platform or application and how you can bet on the future of the project. If demand for the platform increases so does demand for its native asset.
A new financial industry has been enabled by the global computer that is Ethereum’s blockchain – decentralized finance (DeFi). Smart contracts aren’t just useful for creating other decentralized currencies, they can also be used to make decentralized applications (dApps).
A developer would choose to make their application decentralized if they believe it stands to benefit from anonymity and peer-to-peer interactions. Take the foreign exchange (FX) market for example, which employs banks all across the world to facilitate trade. While FX may seem decentralized, each of these banks represents a central point of attack for hackers or malicious insiders. Additionally, these banks require personal information to protect themselves from fraud. All of this can be solved with a simple smart contract on the blockchain. No central points of weakness, complete anonymity and borderlessness – all thanks to the powers of the blockchain. Decentralized exchanges (DEXs) like Uniswap and SushiSwap are applications created using smart contracts and have native assets that are some of the most promising altcoins on the market today.
How to Buy Altcoins in 3 Steps
1. Create an Exchange Account
Exchanges power swaps between fiat currencies and digital currencies. There are plenty of great altcoin exchanges that will deliver you access to altcoins. Centralized U.S.-based exchanges require SSN, driver’s license and sometimes other personal information for tax purposes. However, DEXs are entirely anonymous. You’ll find a list below to compare crypto exchanges and pick the one that’s right for you.
Creating an account is straightforward, usually just requiring an email and password, as well as verification.
2. Fund Your Account
With a verified account, you will need to add funds to it. This process can be accomplished in several ways, such as a wire or automated clearing house (ACH) transfer. Wire transfers occur directly between your bank and the broker and can be quick but often have higher fees. ACH transfers can be a bit slower but often do not have fees.
Some sites allow for instant access to buying power, such as Robinhood and Webull. This means that you can begin trading before the transfer is cleared and deducted from your bank account.
3. Study the Market and Buy
The altcoin market is ripe with winners and losers. The best way to attempt to figure out the winners is to spend time in the markets before investing your full amount. Start small and learn real lessons with small amounts of money before risking a bigger loss.
To buy, search for the token on the exchange, enter the dollar amount or number of tokens you would like to purchase and execute the trade. Look for a trade confirmation email and view the position in your portfolio.
How to Choose Which Altcoin to Buy
Here are some things to keep in mind that can help you choose the altcoin that aligns with your investment goals.
- Community and adoption: Some tokens, particularly meme coins, can see large price increases on the back of a strong community. The communities can band together to continue buying the token to send the price higher and keep it there. Additionally, adoption from institutions or individuals can help increase demand for the token.
- Use cases: Higher adoption rates can lead to price increases. One of the key drivers of adoption is use cases. If a project can provide lots of utility to its users, there is a chance that more people will buy the token.
- Liquidity: Another important metric is liquidity. This metric can show how large the project is as well as how easy it is to enter and exit a trade. Typically, tokens with larger volumes are seen as safer and easier to invest in.
- Tokenomics: Crypto allows the project creators to have full discretion over the token supply or the tokenomics. Projects can have different supply schemes, which has an impact on the price.
- Development team: Some projects intentionally keep the development team anonymous so that they can scam their users. While this is not the case for all projects with anonymous founders, it is usually better to invest in projects with known employees and developers to better ensure the credibility of the project.
Where is the Best Place to Buy Altcoins?
Get Started
securely through Plus500’s
website
get started
securely through eToro’s
website
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro is headquartered in Cyprus, England and Israel. A major eToro plus is its social trading operations, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its underwhelming research and customer service features.
Best For
- Investors looking to CopyTrade other traders
- Simple user interface
- Several major cryptocurrencies and altcoins
- Expansive network of social trading features
- Large client base for new traders to imitate
- Only 21 coins available in the US but over 30 globally
Get started
securely through Paybis’s
website
While cryptocurrency has become mainstream, providing a means of livelihood for millions of traders and investors globally, only a few platforms offer streamlined access to the market. Most major exchanges require time-consuming setup or registration and verification processes and high minimum buying or trading amount, which limits accessibility, especially for beginners and undercapitalized traders. If you’re a beginner trader or crypto enthusiast seeking fast access to the crypto market, Paybis presents an excellent choice.
Established in 2014, Paybis has gained recognition for its easy-to-use platform, instant cryptocurrency purchase, simple setup and verification process, responsive customer support and extensive support for digital assets. The platform aims to simplify converting fiat currencies into cryptocurrencies, streamlining market access to diverse investors globally. With Paybis, you can buy Bitcoin and over 80 other cryptocurrencies using your credit /debit card or any preferred payment method. Paybis supports over 60 fiat currencies, including USD, GBP and EUR, from countries around the globe.
Paybis’s straightforward, hassle-free and secure trading approach has earned the trust of over 1.8 million users worldwide, with an annual transaction volume running into hundreds of millions of dollars. You can buy Bitcoin within moments of landing on the site or setting up your account; it is that simple. Paybis is regulated by The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), meaning the platform takes adequate measures to protect your funds. Paybis is available in over 180 countries and continues to expand in terms of assets, users and jurisdictions. Read on for a comprehensive review of this platform, its services and how it compares to similar platforms.
Best For
- Beginner crypto traders or investors looking for a user-friendly platform with an easy setup and verification process
- Crypto enthusiasts seeking access to a broad range of crypto assets, including popular ones like Bitcoin and lesser-known coins and tokens
- Investors or traders with limited budgets looking for a platform that offers a low minimum amount per transaction with lightning-fast crypto payout or transaction settlement
- On-the-go traders seeking a simplified mobile app with easy-to-use features and responsive customer support to facilitate seamless trading or investing regardless of location or time
- Supports over 60 fiat currencies worldwide, including USD, EUR, JPY and GBP
- Supports over 80 cryptocurrencies, including major cryptos like Bitcoin and Ethereum
- Lightning-fast crypto purchase with instant payout
- Round-the-clock and highly responsive customer support
- Low minimum buying amount facilitating accessibility by undercapitalized investors
- Well-regulated by multiple and reputable regulatory bodies including FinTRAC
- Simplified and easy-to-use interface for seamless buying and selling experiences
- Straightforward and fast setup and verification processes
- No hidden fees and multiple payment options
- Available in 180+ countries and accessible in 9 languages
- Simplified mobile app wallet for on-the-go access
- Relatively high transaction fees
- Lacks advanced trading tools and features
- Users can only sell 10 cryptocurrencies
earn free crypto
securely through Coinbase’s
website
Given the number of crypto exchanges that have shut down, a recurring problem for crypto traders is finding reputable crypto brokers. These fears were heightened in 2022 by the collapse of FTX, one of the largest exchanges. Traders would like to trade and keep cryptocurrencies on exchanges without worrying.
Unlike many crypto exchanges that avoid the U.S. market, Coinbase has registered as a Money Services Business with FinCEN and complies with financial services and consumer protection laws. Its publicly traded status in the U.S. also means it is a regulated entity. Its platform is popular for its simple interface and accessibility. Coinbase offers a simple entryway to the crypto market suitable for new and experienced traders.
In this article, Benzinga provides an in-depth review of Coinbase, including its pros and cons and how it compares to other crypto exchange platforms.
Best For
- Beginners and new crypto investors
- Investors looking to trade or invest in cryptocurrencies
- People looking for a trustworthy platform to trade their digital assets
- Easy-to-use design makes it simple to buy, sell and store cryptocurrencies
- Hundreds of cryptocurrencies available, including Bitcoin, Ethereum and more
- Trusted reputation as a reputable exchange and a publicly listed company, which means it is subject to regulation.
- Convenient portfolio management via mobile app
- Offers institutional solutions like prime brokerage, commerce support
- High fees compared to other platforms, especially for small transfers
- Pending SEC lawsuit about operating an unregistered securities exchange
get started
securely through Robinhood’s
website
Robinhood is the broker for traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform. On the other hand, more advanced traders might be frustrated by Robinhood’s lack of technical analysis tools, a feature that’s now nearly universal across other platforms.
Best For
- Fee-free trading
- Beginner crypto investors
- Doge day traders
- Commision-free trading
- Access to Dogecoin
- Limited altcoin selection
- No wallet capabilities
How to Securely Store Your Altcoins
While storing crypto on a trading platform is the easiest option, it does not give you full discretion over your tokens. To be able to use your altcoins and have full discretion, you need a cryptocurrency wallet.
Best Hardware Wallet: Ledger Nano S Plus
buy now
securely through Ledger Hardware Wallet’s
website
Launched in 2014, Ledger has transformed into a fast-paced, growing company developing infrastructure and security solutions for cryptocurrencies as well as blockchain applications for companies and individuals. Born in Paris, the company has since expanded to more than 130 employees in France and San Francisco.
With 1,500,000 Ledger wallets already sold in 165 countries, the company aims at securing the new disruptive class of crypto assets. Ledger has developed a distinctive operating system called BOLOS, which it integrates to a secure chip for its line of wallets. So far, Ledger takes pride in being the only market player to provide this technology.
Best For
- ERC-20 tokens
- All experience levels
- Easy to set up and use
- Supports more than 1,500 different digital assets
- Tamper proof
- Portable
- Long-lasting battery
- Bluetooth connectivity features
- Can be quite pricey
Ledger is a hardware wallet that supports thousands of altcoins. Hardware wallets are physical devices that store private keys to crypto wallets. Funds cannot be accessed without the physical device present. Hardware wallets are the safest way to store crypto.
Ledger currently offers the Nano S Plus and Nano X models. The Nano S Plus is a rudimentary device that is beginner-friendly. The Nano X is for more advanced users, offering more space and connectivity options.
Best Software Wallet: Coinbase Wallet
earn free crypto
securely through Coinbase’s
website
Given the number of crypto exchanges that have shut down, a recurring problem for crypto traders is finding reputable crypto brokers. These fears were heightened in 2022 by the collapse of FTX, one of the largest exchanges. Traders would like to trade and keep cryptocurrencies on exchanges without worrying.
Unlike many crypto exchanges that avoid the U.S. market, Coinbase has registered as a Money Services Business with FinCEN and complies with financial services and consumer protection laws. Its publicly traded status in the U.S. also means it is a regulated entity. Its platform is popular for its simple interface and accessibility. Coinbase offers a simple entryway to the crypto market suitable for new and experienced traders.
In this article, Benzinga provides an in-depth review of Coinbase, including its pros and cons and how it compares to other crypto exchange platforms.
Best For
- Beginners and new crypto investors
- Investors looking to trade or invest in cryptocurrencies
- People looking for a trustworthy platform to trade their digital assets
- Easy-to-use design makes it simple to buy, sell and store cryptocurrencies
- Hundreds of cryptocurrencies available, including Bitcoin, Ethereum and more
- Trusted reputation as a reputable exchange and a publicly listed company, which means it is subject to regulation.
- Convenient portfolio management via mobile app
- Offers institutional solutions like prime brokerage, commerce support
- High fees compared to other platforms, especially for small transfers
- Pending SEC lawsuit about operating an unregistered securities exchange
Different from the crypto brokerage, Coinbase Wallet is a wallet service provided by Coinbase. Funds are held in the wallet instead of by Coinbase themselves. You do not need a Coinbase account to have a Coinbase wallet. The wallet supports most of the major blockchains.
Coinbase wallet is a great option for those looking for more security but do not want the hassle of a physical device. It is also free, whereas most hardware wallets require purchase.
Is It Worth Buying Altcoins?
Investing in altcoins can be rewarding and risky. While some altcoins have experienced significant growth and have made early investors wealthy, others have failed and caused significant losses. Conduct thorough research and analysis before investing in altcoins because of the high volatility and unpredictability of the cryptocurrency market. Investing in altcoins can offer opportunities for diversification and potentially higher returns compared to traditional investments, but it also carries a higher level of risk. The decision to invest in altcoins should be based on an individual’s risk tolerance, financial goals and understanding of the market dynamics.
The post How to Buy Altcoins in 2024 by Caden Pok appeared first on Benzinga. Visit Benzinga to get more great content like this.