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How To Buy Altcoins in 2024
Altcoins are a collection of various cryptocurrencies available to trade that are separate from the world’s first cryptocurrency, Bitcoin. In this article, we’ll be exploring how to buy Altcoins, which Altcoins to buy, and where to buy Altcoins.
Also, we will discover what Altcoins are, how Altcoins work, and what you should consider when buying Altcoins in 2024.
Best Brokers to Buy Altcoins in 2024
If you are looking for where to buy Altcoins and the best ways to buy Altcoins, you may want to check out the following list of the best cryptocurrency brokers and trading platforms below.
| Exchange | Why we like it | Best for |
|---|---|---|
| Coinbase | – User-friendly interface – Native crypto wallet – Earn interest on your crypto – Low account minimum | Beginners looking to trade large-cap coins. |
| eToro | – Access stocks and crypto in one place – Copy the trades of experts – Regulated by global bodies – Access Bitcoin Spot ETF | Investors who want to buy crypto and stocks. |
| Kraken | – Cold wallet storage – Trade with leverage up to 5x – Advanced traders can access – Kraken Pro with sophisticated trading tools – Over 200 cryptocurrencies available | Advanced traders who are interested in margin trading. |
| Crypto.com | – Excellent mobile app – Users can receive trading discounts by holding CRO – Native decentralized wallet – Over 250 cryptocurrencies available | Traders who want to manage their portfolio on their mobile phones. |
| Binance | – Over 500 cryptocurrencies available – Extensive range of educational materials – Automated trading | Users who are looking to build a diverse portfolio with lots of different cryptos. |
What Is the Difference Between Buying and Trading Altcoins?
There are a few key differences between buying and trading Altcoins.
For one, when you buy Altcoins, you become the owner of the coins themselves. You then store these coins in your broker or exchange accounts. Alternatively, you can also keep them in a personal wallet. In addition, when you buy Altcoins, you can then use those coins as currency wherever they are accepted. You can also use those altcoins to exchange for other types of cryptocurrency or fiat currency.
When you trade Altcoins, you do not own the coins themselves. Instead, you’ll own a contract regarding the value of the coins. In essence, you are speculating on the price rising or falling and trying to make a profit.
How to Buy Altcoins Online?
If you are wondering how to buy Altcoins online, be sure to follow the steps below:
Step 1: Find an Exchange
There are many exchanges online that offer various altcoins for you to buy. Each platform has its advantages and disadvantages. Be sure to do enough research to find the right platform for you. However, if you need some assistance, we recommend Coinbase for beginners due to its user-friendly interface and simple navigation or Binance for intermediate traders looking for advanced tools and functions.
Step 2: Sign Up and Deposit Funds into Your Account
If you want to use an exchange to buy Altcoins, you need to sign up and register to become a user. While the steps required will vary between platforms, you can expect to provide your email address, phone number, and photo identification. You will then have to fund your account. Your exchange should have numerous payment methods available, though most will accept debit or credit cards and bank transfers. Some will accept deposits in cryptocurrency. You can also make deposits with PayPal, which is less common than the more widely accepted methods.
Step 3: Complete Your Trade
Once you have deposited funds into your account, look for the relevant altcoin in the list of available cryptocurrencies, or select the correct trading pair for the coins you intend to trade (for example, ETH/GBP if you are trading the British Pound for Ethereum), then complete your trade.
Step 4: Get a Suitable Wallet
With many exchanges, you can hold your Altcoins on the exchange platform itself. While this may be convenient if you are going to trade them again shortly, you may want to think about getting a personal wallet if you want to hold those coins for a while. This is the best way to keep your crypto investment secure. So do some research and find the right wallet for you. Some of the biggest names include Ledger and Trezor.
How to Trade Altcoins?
If you are looking to trade Altcoins instead of purchasing them, follow these steps:
Step 1: Find a Broker
If you want to start trading Altcoins, you need to find an online broker that works for you. They should let you open and close positions easily. Most brokers will allow cryptocurrency trading, but you need to ensure they let you trade the crypto coins you are interested in.
Step 2: Deposit Funds
Before you begin trading, you need to deposit funds into your broker account. Your broker will usually only accept fiat currency deposits, and there will be certain fees associated with withdrawals and deposits. However, you should check these fees before signing up with any broker. After all, you want to be making as much profit as possible.
Step 3: Decide How to Trade
When you sign up with a broker, you’ll usually find two trading options: CFDs trading and spread betting. Both of these approaches involve trading against the value of altcoins rather than purchasing the coins yourself. Decide which choice is right for you based on your crypto strategy and research the best techniques and practices to ensure a greater chance of profit.
Step 4: Begin Trading
If you are new to trading Altcoins, we recommend starting with a demo account until you find your feet. This way, you can learn your way around the platform without risking your money – which is handy when jumping into a volatile market like cryptocurrency.
When trading in crypto markets, you will be speculating on the value of altcoins, taking long (buy) or short (sell) positions. In addition, you’ll want to keep an eye on the latest news surrounding the cryptos you’re interested in and develop strategies that help you figure out which way the market will go.
Once you get more comfortable with trading, you may also want to try trading with leverage. Many brokers let you change large amounts of fiat currency while only paying a small margin. However, you should be careful with leveraged trading as it can result in a significant loss just as easily as it can garner big profits.
What Are the Different Ways to Pay for Altcoins?
There are numerous ways you can purchase altcoins, all of which have their pros and cons:
Buy Altcoins with PayPal:
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As an online wallet, PayPal can be used to deposit, transfer, and withdraw funds to various sites, including exchanges. PayPal primarily deals in fiat currencies, which means this method is only compatible with fiat currency-to-cryptocurrency exchanges and online brokers. However, it has recently taken steps into the cryptocurrency market, opening the door to crypto-to-crypto trading via PayPal.
Buy Altcoins with Credit/Debit Card:
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Credit and debit cards are the most popular payment methods for exchanges and brokers, allowing you to send funds directly from your bank account.
Buy Altcoins with Bank Transfer:
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Unfortunately, some countries make it difficult to use your credit card on crypto exchanges and trading platforms. However, bank transfers are another viable option. For example, if you trade with an online broker or exchange, you can send funds from your bank account using the bank’s more convenient payment method. In short, your deposits should be processed within seconds.
Buy Altcoins with Digital Tokens:
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You can also use the original crypto exchange payment option. Digital tokens are the only available way to purchase other altcoins if you are on a crypto-only form.
What to Consider When Buying Altcoins?
When buying altcoins, you need to consider a few factors. These include:
Deposit Fees:
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Different platforms will offer different deposit fees. You should compare deposit fees before creating an account with an exchange or broker. Your payment method may also affect how much deposit fees you have to pay.
Trading Fees:
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Some platforms will add trading fees. Therefore, you should check the trading fees of your chosen platform (as well as any fees to do with your payment method) before deciding on a platform to buy altcoins.
Volatility:
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The cryptocurrency market is highly volatile. The value of altcoins will always fluctuate. As such, you are just as likely to make a loss on your investment as you are a profit. However, you can use this volatility to your advantage. Many people purchase altcoins when they are very cheap and hold them until prices are high enough to sell again.
Regulations:
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If you buy your altcoins through a broker or an exchange, you will want to ensure the platform has been regulated by the country’s relevant authorities. When a trading platform is regulated, they follow certain procedures to minimise the security and safety risks of its users’ funds.
Long-term Holding:
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This involves purchasing crypto and waiting for its value to rise over time. This can yield significant profit but can also lead to significant losses if the price plummets.
Short-term Holding:
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You may want to consider short-term holding, which involves purchasing altcoins and selling them within one year. Keep in mind that you will have to pay tax if you profit over a certain amount.
Is It Safe to Buy Altcoins Online?
Yes, purchasing altcoins online can be safe, provided you take a few additional security steps.
One thing you need to remember is that altcoin transactions are irreversible. As such, you should never type your wallet address by hand. Also, double-check those details before completing a transaction.
You should also avoid storing a substantial amount of crypto in your exchange wallet. If the exchange is fraudulent or is targeted by hackers, you’ll lose those funds. Instead, you should opt for a personal wallet which gives you additional security. You may want to purchase a hardware wallet, which can be unplugged from your device and kept securely in your home or a safe.
That being said, many exchanges will use two-factor authentication to limit fraud and protect their users.
How to Store Altcoins?
If you are planning on trading your altcoins in the near future, you can usually store your coins in your exchange wallet. However, as aforementioned, if you intend to hold onto those funds for a long time (if you have a long-term holding strategy), you will want to invest in a personal wallet. This can be an online service or even a hardware wallet, both of which add additional security to your altcoin investment.
How to Sell Altcoins?
If you want to sell altcoins, you can usually do so on the same service you bought them in the first place. However, there are numerous methods available. These include:
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Exchanges
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Crypto ATMs
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Brokers
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P2P services
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Sell for cash
Do some research and figure out which selling method works for you. You should also be aware that most platforms will charge a small seller’s fee.
Is It Worth Buying Altcoins Right Now?
This depends on your goals. If you want to purchase altcoins to use and spend them, you can do this whenever you like as long as you can afford them. However, if you’re going to make a profit either in the short or long term, there are more things to keep in mind. For example, you want to look at how those coins have performed. As such, you should keep up to date with the latest news and analysis regarding various altcoin markets.
Final Thoughts. Best Ways to Buy Altcoins.
There are numerous ways to purchase altcoins and many things to consider when choosing your currency or platform. Exchanges are the most convenient way to purchase altcoins, but that does not mean you should rule out other methods that may work better for you. Remember to do enough research on altcoins to understand the right time to buy and come up with a buying and selling strategy that helps you save money and earn bigger profits.
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