How To Buy Cryptocurrency In Africa?

By Author: Caloe Decker
Total Articles: 2
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Considering the fact that cryptocurrency has been around for a long time, with the first digital token, Bitcoin, being formed in 2009, it has only lately become one of the most commonly used words.

As an interested observer or a potential investor wishing to invest in the digital currency, it is reasonable to state that there is no hiding from the crypto realm.

Market analysts have attributed the recent growth in cryptocurrency popularity to the record high market gains seen in 2020/2021, which were mostly driven by speculation and the digital medium of exchange's future outlook.

Cryptocurrencies, unlike tangible fiat currencies (such as the US Dollar), are decentralised, meaning they are not issued or guaranteed by a central authority and instead run on a network of computers. These assets make use of blockchain technology to ensure that each party's transactions are safe.

Bitcoin, the world's oldest cryptocurrency; Ethereum, the only virtual currency with a chance of challenging Bitcoin's dominance; Cardano, KOIN, and others are among the most popular cryptocurrencies.

The tremendous volatility ...
... of bitcoin, on the other hand, has caused market analysts to warn investors against investing in the assets, claiming that it necessitates proper diligence.

Getting around to invest in cryptocurrencies as a newbie may appear difficult, but it is much easier once the necessary procedures are broken down. The following is a basic guide to purchasing cryptocurrencies in Africa and other parts of the world.

Choose a cryptocurrency exchange or a broker.

When a potential investor decides to invest in cryptocurrencies, the first step is to select a platform through which to do so. A standard broker or a dedicated cryptocurrency exchange are both options for such an investor. (topit.africa)

Brokers are typically financial advisors who help people acquire and sell cryptocurrencies. These platforms are notable for their low trading fees and lack of cryptocurrency capabilities.

Cryptocurrency exchanges, on the other hand, are online marketplaces where you may buy and sell cryptocurrencies. Exchanges, while they have their own set of rules, tend to feature more complicated interfaces with many transaction kinds and advanced performance charts, as well as lower fees. Three of the most well-known cryptocurrency exchanges are Coinbase, Gemini, and Binance.

While some of the organisations' regular trading interfaces may be intimidating to newcomers, market analysts claim that they provide user-friendly, simple purchase options.

1. Create a user account.

The next step is to open a bitcoin broker or exchange account. Depending on the platform and the amount of money an investor wants to put into the system, account verification may be required.

The measure is necessary, according to brokers and cryptocurrency exchanges, to prevent fraud and comply with federal regulatory standards.

A copy of a driver's licence or passport may be required to successfully verify an account, and in some situations, an upload of a selfie to verify a match to the documents submitted may be necessary.

2. To purchase cryptocurrency, you must first fund your account.

To purchase cryptocurrency, an account holder must first deposit monies into their account. Linking a bank account, requesting a wire transfer, or even making a purchase using a debit or credit card are all methods for depositing money into a crypto account.

3. Place a cryptocurrency order

The investor is ready to place their first cryptocurrency order once their account has been filled. While there are many different cryptocurrencies to select from, ranging from well-known names like Bitcoin and Ethereum to less well-known cryptos like Theta Fuel or Holo, an investor can purchase a fractional share of a cryptocurrency.

4. Assets should be stored.

After purchasing a cryptocurrency, the next step is to identify a secure storage location to protect it from hacking or theft.

A bitcoin wallet is required at this point. It's either a physical device or online software that allows investors to safely store their cryptocurrency private keys.

Meanwhile, some exchanges include built-in wallets that allow investors to hold funds directly on the site. However, not all exchanges or brokers offer wallet services by default.