PotCoin is a cryptocurrency that aims to bring decentralization to the marijuana industry. We explore the coin's investment potential and the crucial measures to take when you want to buy PotCoin.
Best Brokers to Buy PotCoin in 2023
We've compiled a list of all the other top brokers to buy PotCoin online.
What Is the Difference Between Buying and Trading PotCoin?
PotCoin was launched in January 2014. It is one of the oldest cryptocurrency projects in the marijuana industry. PotCoin’s objective is to solve banking problems for people looking to get into legal marijuana. To prevent any form of confusion, we will highlight the differences between buying and trading PotCoin.
While “buying” and “trading” might look one and the same, they are quite different. To help you understand the differences, we’ve briefly outlined these below.
Buying PotCoin: Buying POT means that you own the coins outright.
Trading PotCoin: Trading involves buying underlying assets, but you do not own the coins outright. The aim is to capitalise on market changes to make a profit.
How to Buy PotCoin Online?
A popular way to buy PotCoin is through exchanges like Bittrex Global, Tradeogre, and FreiExchange. Here is the usual process to follow:
Step 1: Find a Suitable Exchange That Accepts PotCoin
Step 2: Fund Your Purchase
Step 3: Complete Your Transaction
How to Trade PotCoin?
Trading PotCoin is the same as with other tokens and you’ll most likely use a broker:
Step 1: Find a Broke
Step 2: Sign Up
Step 3: Deposit Funds
Step 4: Trade
Step 5: Buy
What Are the Different Ways to Pay for PotCoin?
You can pay for the PotCoin through these methods:
Credit Cards: You can buy PotCoin with fiat using your credit card. Credit card payment offers high liquidity, low fees, and security although it is a bit risky since it contains your personal and financial data.
Debit Cards: hey work just like credit cards and have similar pros and cons.
Crypto ATMs: You can get PotCoin by buying Bitcoin at crypto ATMs before swapping it for your desired token. Although these ATMs allow you to carry out transactions anonymously, they are hard to find and the process is cumbersome.
Cash: Get PotCoin by paying physical cash to B2C platforms that support it. This should only be done between trusted people and businesses to reduce its associated risks.
PayPal: PayPal has a notorious chargeback policy, which means that only a few brokers/exchanges support the payment provider for cryptocurrencies. This includes PotCoin. Using PayPal is not a straightforward process as you have to buy Bitcoin first before exchanging it for PotCoin.
What to Consider When Buying PotCoin?
Because cryptocurrencies are technical and speculative, you should understand the risks involved before getting into the market. If you are thinking of buying POT, be sure to consider the following:
Deposit Fees: Huge deposit fees may hinder a coin’s progress. In addition, depositing small tokens might be more expensive than large tokens. Always confirm deposit fees before carrying out any transaction.
Trading Fees: Exchanges charge a small percentage of your token as commission for trading and these could prove to be a lot particularly for traders. We recommend choosing a trusted broker with the lowest trading fees.
Competition: There are other cannabis-themed cryptocurrency projects. Before buying PotCoin, it would be a good decision to analyse the strengths and weaknesses of the other projects. PotCoin’s competition includes CannabisCoin (CANN), DopeCoin (DOPE), HempCoin (THC) and CannaCoin (CCN).
Volatility: Coin prices could fluctuate rapidly in any direction. Although PotCoin is relatively stable compared to other coins, evaluating the entire market volatility is a crucial step to consider when buying POT or any other cryptocurrency.
Regulations: Marijuana is still not legal under US federal law. This means that operators and businesses in the country cannot access bank services. Many are left with the cash-only option.
Long-term Holding (HODL): Choosing a long-term strategy by buying POT allows you to invest in the coin for compound profits for months or years.
Short-term Holding: Short-term holding gives you rewards from small price changes. Here, you would need to be able to read the charts and study the market patterns. You should also choose exchanges with the lowest fees to maximize your profits.
Trading Volume: High trade volume shows that a coin is in demand and could help you determine a good time to buy POT.
Is It Safe to Buy PotCoin Online?
Other measures important in ensuring the safety of your funds include:
Use a personal wallet for extra security. Enabling two-factor authentication gives an extra layer of security as well.
Put in only the necessary KYC details when verifying your account.
Ask for help only on official platforms.
How to Store PotCoin?
If you have decided to invest in PotCoin, using a wallet will give you more security. There are two main wallet options:
Cold wallets: Ledger Nano S is one of the best wallets for PotCoin. It is an affordable cold/hardware wallet that stores your POT completely offline. This protects it from the possibility of online attacks. CoolWallet is a physical storage option for your coins. It has an associated mobile app for easy access to your funds.
Hot wallets: Exchanges are a great choice for storing your coins online. This is especially useful if you intend to trade your coins rather than invest.
How to Sell PotCoin?
If you want to sell your PotCoin, consider doing it in these ways:
Exchanges: Selling your POT on a crypto exchange is fairly identical to buying it. Keep in mind, however, that not all currency pairs will be accessible on every exchange, so you might not be able to trade POT for your preferred currency directly.
ATM: You can convert your PotCoin to Bitcoin and sell it at a cryptocurrency ATM if you find one around you.
Broker: Brokers buy digital tokens at regulated prices. You can sell your POT to reliable brokers.
P2P Service: Peer-to-peer systems facilitate direct transactions without the involvement of a third party. P2p platforms are now common on exchanges.
Cash: You could sell your POT token to family, friends, and businesses in exchange for cash.
Is It Worth Buying PotCoin Right Now?
Many factors come into play when considering buying PotCoin but they all depend on your financial goals and investment strategy. Taking a look at the project’s strengths and weaknesses will guide you on your journey to buying POT.
PotCoin faces less competition because it is aimed at a less-explored sector. The coin has been around since 2014 and most of its features have been verified and proven useful. Its market performance has been relatively good over the last twelve months and the exchange is run by a dedicated staff with constant network updates.
The strategy remains the most important thing when buying PotCoin because a good strategy could safeguard the value of your investments. PotCoin was designed with a decent objective in mind, and it seems that more people are recognizing its value.
Still, the cannabis industry has its opponents and the coin’s performance still lags when compared to coins like Ethereum that were created after it. Buying PotCoin is a decision only you can make because of the general unpredictable nature of the cryptocurrency world.