How to Buy Cryptocurrency with USD in 2017: A Comprehensive Guide

Introduction:

In 2017, the cryptocurrency market experienced a significant surge, attracting a large number of investors. With the rise of Bitcoin and other altcoins, many individuals were eager to join the crypto revolution. This guide will provide you with a step-by-step process on how to buy cryptocurrency using USD in 2017.

Step 1: Understand Cryptocurrency

Before diving into the buying process, it is crucial to have a basic understanding of cryptocurrency. Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central authority and is typically created through a process called mining.

Step 2: Choose a Cryptocurrency Exchange

To buy cryptocurrency, you need to open an account on a cryptocurrency exchange. In 2017, several reputable exchanges existed, such as Coinbase, Binance, and Kraken. Research and compare different exchanges based on factors like fees, security, and available cryptocurrencies.

Step 3: Sign Up and Verify Your Account

Once you have chosen an exchange, visit their website and sign up for an account. During the registration process, you may be required to provide personal information, including your full name, email address, and phone number. Additionally, some exchanges may require you to complete a verification process by providing identification documents.

Step 4: Deposit USD into Your Exchange Account

After verifying your account, you need to deposit USD into your exchange account. Most exchanges offer various deposit methods, including bank transfers, credit/debit cards, and wire transfers. Choose the method that suits you best and follow the instructions provided by the exchange.

Step 5: Choose a Cryptocurrency and Place an Order

Once your account is funded, you can start buying cryptocurrency. Navigate to the trading section of the exchange and select the cryptocurrency you want to purchase. Enter the amount of USD you wish to spend and place an order. You can choose to buy at the current market price or set a limit order to buy at a specific price.

Step 6: Store Your Cryptocurrency Safely

After purchasing cryptocurrency, it is crucial to store it securely. Exchanges are prone to hacks and theft, so it is recommended to transfer your cryptocurrency to a secure wallet. There are several types of wallets available, including software wallets, hardware wallets, and paper wallets. Choose a wallet that suits your needs and follow the instructions to transfer your cryptocurrency to it.

Step 7: Stay Informed and Monitor Your Investments

The cryptocurrency market is highly volatile, so it is essential to stay informed and monitor your investments. Keep track of market trends, news, and developments that may impact the value of your cryptocurrency. Remember that investing in cryptocurrency involves risks, and it is crucial to do thorough research before making any investment decisions.

Questions and Answers:

1. What is the difference between a cryptocurrency exchange and a wallet?

A cryptocurrency exchange is a platform where you can buy, sell, and trade cryptocurrencies. On the other hand, a wallet is a software or hardware device used to store your cryptocurrencies securely.

2. Can I buy cryptocurrency with credit/debit cards on all exchanges?

No, not all exchanges support credit/debit card deposits. It is essential to check the available deposit methods on the exchange you choose before proceeding with a purchase.

3. How long does it take to verify my account on a cryptocurrency exchange?

The verification process can vary depending on the exchange. Some exchanges may complete the verification within a few hours, while others may take several days. It is recommended to verify your account as soon as possible to avoid any delays in future transactions.

4. Can I sell my cryptocurrency back to USD on the same exchange?

Yes, most exchanges allow you to sell your cryptocurrency back to USD. Navigate to the trading section, select the cryptocurrency you want to sell, and place a sell order. The USD will be transferred to your exchange account, which you can then withdraw to your bank account.

5. Are there any fees associated with buying and selling cryptocurrency?

Yes, there are fees associated with buying and selling cryptocurrency. These fees can vary depending on the exchange and the transaction method. Some common fees include deposit fees, withdrawal fees, and trading fees. It is crucial to review the fee structure of the exchange you choose before making any transactions.

Conclusion:

Buying cryptocurrency with USD in 2017 was a straightforward process, provided you followed the right steps. By understanding cryptocurrency, choosing a reliable exchange, depositing USD, and storing your cryptocurrency securely, you could have joined the crypto revolution. However, it is crucial to stay informed and monitor your investments to mitigate risks.