Cryptocurrencies can be acquired or transferred without the need for third party mediation. There are myriad acquisition methods for cryptocurrency such as cryptocurrency exchanges, payment processors and brokerages. The requirements for acquiring cryptocurrency vary with the type of acquisition method selected. For instance, some cryptocurrency exchange platforms that implement the Know Your Client (KYC) policies require an aspiring cryptocurrency holder to produce an identity card when buying cryptocurrencies.
Other requirements include a valid cryptocurrency exchange, secure internet connection, and valid payment channels/methods. Cryptocurrencies have a higher level of flexibility in terms of acquisition at any time of the day compared to other assets such as stocks. It is possible to buy various cryptocurrencies such as bitcoin at specialized ATMs. Further, there is an increasing number of P2P exchanges that facilitate bitcoin purchases.
In this checklist is everything you need to know pertaining to acquisition of cryptocurrency.
Step 1 – Selecting an Acquisition Method
1 Select your preferred acquisition method (options include P2P exchanges, cryptocurrency exchanges, brokerage firms)
2 Compare the available methods to determine the most suitable method for your business
3 Evaluate the variety of cryptocurrency offered by your selected method
4 Check online reviews on each of the methods
5 Determine the level of security of your selected method
6 Check the quality of customer service provided
Step 2 – Funding Your Account
7 Select a payment option
8 Compare the charges of your selected payment option to other available options
9 Connect a payment option
10 Consider connecting your bank account
11 Check that your bank accepts cryptocurrency
12 Consider connecting a debit or credit card
13 Evaluate whether the payment option charges a flat fee or a percentage of the trading amount
Step 3 – Placing your Order
14 Check whether it is possible to set recurring purchases daily, weekly, or monthly
15 Ascertain whether the exchange allows for limit orders on cryptocurrency transactions
16 Check that the exchange offers myriad order types
17 Determine whether the exchange offers both market and limit orders
Step 4 – Selecting a Storage Method for your Crypto
18 Determine the best storage method for your business (whether cold or hot storage)
19 Evaluate the susceptibility of your selected storage to hacking and theft
20 Select storage options that require two-factor authentication
Note:
- Some of the most popularly used exchanges include Gemini, FTX.US, Kraken, Binance, Coinbase
- It is possible to buy cryptocurrencies from mainstream services such as PayPal and Robinhood
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