Nowadays we can already buy some cryptocurrencies using dollars. For example, right now you can buy Bitcoins, Ethereum, Litecoin, Zcash or NEO on many exchanges and just by doing a bank transfer or purchasing them directly with your credit/debit card.
Even though some currencies can be bought directly with dollars, Bitcoins are still used to buy most cryptocurrencies. So the first thing to do is exchanging your dollars for Bitcoins, and then enter the market to buy the cryptocurrency of your choice.
Where to buy cryptocurrencies
The first thing you need to do is open an account at an exchange. But not all of these platforms offer the possibility of buying the wide range of cryptocurrencies currently available on the market, and keeping in mind that right now there are over 1,500 virtual currencies, this is understandable.
But anyway, below you will find the exchanges I use most often to buy them:
How to buy cryptocurrencies
Currencies are bought at exchanges such as Bittrex or Coinbase. We buy directly from them, and all things considered, it is something quite similar to going to the bank to exchange our Dollars for Euros or Yens.
In the case of digital currencies, we are not required to buy them per unit; for example if we have $500 and want to purchase Bitcoins, we would currently get 0.04 BTC for that money.
We should remember that right now Bitcoin is still the exchange currency to buy most of the cryptocurrencies. There are still very few that can be bought directly using dollars.
The best way to buy cryptocurrencies is making a deposit at the exchange via bank transfer. It is a safe method and no fees are charged.
This is one of the most important issues, but you should know that after almost a year of buying and selling cryptocurrencies, I have never had any trouble with any payment method. I particularly recommend the following, which are sorted based on my preference:
- Bank transfer (Coinbase, Kraken)
- Credit card (Coinbase)
- Cash (Localbitcoins)
- PayPal (etoro: investment in CFDs)
The best site to buy cryptocurrencies
There is no perfect exchange, but if you want to buy at the best possible website, it should offer the following:
- The website should have a security certificate; the URL should start with https. This is basic so that the data you enter on the website is sent encrypted.
- It should offer 2FA security, which is the safest system to keep your money safe at the moment.
- The exchange rate established by the exchange should be fair. Take a look at the current exchange rate for the currency in websites such as coinmarketcap and analyze whether it is suitable.
- Mind the fees charged for buying/selling or for transferring funds.
If you see something that isn’t right, look for reviews by others who have traded there.
What would be the best cryptocurrency to buy today?
No one should advice you in which currency to invest your money, and I am not going to. What I will tell you is what cryptocurrencies I have bought:
I have some of my money in Bitcoin, Ethereum, Waves, Iconomi, Stratis, MGO, NEO and Ethereum Classic. The forecasts for some of these projects are good in the long term and I am told that their price will increase in the following years, so do your own research and buy if you think it is worth it.
Bitcoin: I no longer think it can be defined as a digital currency, but instead as a digital asset we can use to increase the value of our money. To me, it is still a priority to accumulate them, and it should be for you as well.
Waves: This is a decentralized exchange that also facilitates the launch of ICOs and the creation of new cryptocurrencies on their platform.
ICN: This may become an even larger project than it currently is. The simplicity of its investment platform may bring the world of cryptocurrencies to many people.