How to buy cryptocurrency in 2024

Since the introduction of Bitcoin in 2009, the world of cryptocurrencies has grown steadily, attracting more and more attention from both individual investors and large financial institutions. What makes cryptocurrencies so attractive? Perhaps it's their decentralized nature, giving users complete controlover their funds, or their potential to rapidly increase in value.

In this article, we will dive into the basics of cryptocurrencies, understand how and why to buy them, explore the different types and storage wallets, and look at the details of safe trading on one of the leading platforms. You'll learnhow to register and start tradingand how to use tools like MetaTrader 4 to manage your investments.

What is cryptocurrency?

Cryptocurrency is a digital or virtual medium of exchange that uses sophisticated cryptographic techniques to secure transactions, control the issuance of new units, and verify the transfer of assets. The peculiarity of cryptocurrency is that it does not have a physical embodiment, such as banknotes or coins. Its entire essence is in digital format.

The basis of the technology of most cryptocurrencies is blockchain. This is a decentralized and distributed database that is supported by a network of nodes (computers of network participants).

Each block in the blockchain contains a set of transactions, and adding a new block to the chain requires solving a complex cryptographic problem, which ensures reliability and fraud protection.

Why buy cryptocurrency?

One of the main reasons why cryptocurrencies are interesting is the investment opportunity. Cryptocurrencies are known for their high volatility, which can lead to significant profits if the investment is made wisely and on time. However, it should be remembered that the same volatility can lead tobig losses.

Investing in cryptocurrenciesis often considered as part of an investment portfolio diversification strategy to reduce risks and increase potential returns.

Money transfers

People buy cryptocurrencies to pay for a variety of digital goods and services, including access to GPT chat, software and analytics services.

Due to its decentralized nature, cryptocurrency allows for fast and relatively cheap cross-border transfers. This is especially true for those who need to send money abroad without the high fees that banks typically charge.

Access to new technologies

Purchasing cryptocurrencies also opens access to the latest blockchain platforms and decentralized applications (DApps), which offer services and capabilities not available in the traditional economy.

These platforms can offer innovative solutions in areas such as finance, logistics, law, medicine and many others, promoting technological progress and allowing users to influence their development and improvement.

Major commonly used cryptocurrencies

According to Coinmarketcap, in 2023 there were more than 19 thousand cryptocurrencies. And the crypt below is just a kind of “tip of the iceberg” in a world where new projects appear every day, each with its own unique opportunities and offers.

• USDT (USDt) - Analogue of the US dollar and is always equal to the value of the US dollar. As of 2024, one of the most popular cryptocurrencies; the cost of transferring this currency varies depending on the network used and rarely exceeds 1 USDT.
• Bitcoin (BTC) - Remains the most widely recognized and used type of cryptocurrency in the world, whose market capitalization and value have consistently shown influence on the entire crypto industry.
• Ethereum (ETH). Moved beyond simple cryptocurrency to offer a platform for developing and running decentralized applications and smart contracts, making it a critical asset in the industry.
• Ripple (XRP) - Known for its ability to provide fast and efficient cross-border payments, making it a popular choice among financial institutions.
• Litecoin (LTC) - Created by Charlie Lee, offers faster transaction times and improved efficiency compared to Bitcoin, earning it popularity as the "silver to Bitcoin's gold."
• Binance Coin (BNB) - Introduced as a means of paying fees on the Binance exchange, BNB has expanded its use beyond the platform, becoming a key asset in the Binance ecosystem. (in 2024 Binance stopped working with Russia).

Cryptocurrency wallets

In order to start using cryptocurrencies, you need a place to store and manage them. This role is performed by specialized programs and devices known ascryptocurrency wallets. They allow you to send, receive and store cryptocurrencies, as well as participate in various blockchain operations.

Hot wallets

They are always connected to the Internet, which makes them convenient for daily transactions, but also more vulnerable to attacks. Their main advantage is prompt access to funds. Let's look at their main types:

• Mobile wallets. Applications on your smartphone that allow you to manage cryptocurrencies anywhere you have internet access. They are convenient for daily shopping or trading, as they are always at hand. Examples of mobile wallets include Trust Wallet and Coinbase Wallet.
• Desktop wallets. These programs are installed on your computer and provide greater functionality than mobile wallets. They are ideal for those who want to manage their assets at home or in the office with added levels of security. Examples of desktop wallets include Exodus and Electrum.
• Online wallets. These wallets store your keys on the provider's server and are accessible through an Internet browser. They are most convenient for quick transactions, but also expose your assets to the risk of hacking. Typical representatives are Blockchain.info and MyEtherWallet.

Cold wallets

They are not connected to the network and provide maximum security for your cryptocurrencies. They are recommended for storing large amounts.

• Hardware wallets. Physical devices, similar to USB drives, that store your private keys in a secure hardware environment. These devices can connect to a computer to make transactions and then disconnect, making them unavailable to online threats. Popular hardware wallets include Ledger Nano S and Trezor.
• Paper wallets. These are simply printed QR codes or keys that are used to store cryptocurrencies offline. They are considered one of the safest storage methods, as they are completely isolated from the Internet. A paper wallet is created by generating and printing private and public keys, which can then be used to receive or send cryptocurrencies.

ByBit cryptocurrency exchange

ByBit is one of the leading cryptocurrency trading platforms, offering users advanced financial tools for trading and investing.

Go to the ByBit website.

How to register

To start working on ByBit, you need to create an account. This can be done by going to the official ByBit website or downloading the mobile application. Registration is possible using an email address or mobile phone number.

It is important to remember that each email address and phone number can only be used for one account.

1. Go to the ByBit registration page.
2. Enter your email address or mobile number.
3. Set a password.
4. Enter referral code 77459 if you have one.
5. Confirm your registration by clicking on the link in the email or entering the code from the SMS.
6. Make sure you are not in a country where access to ByBit is restricted.

How to get verified

To use all ByBit features, including withdrawing funds and participating in special programs, you must go through the KYC verification process.

1. Login to your account and go to the "Account and Security" section.
2. Click on the “Pass” button in the KYC verification section.
3. Select the type of document you will use for verification and upload a photo of the document.
4. Go through facial recognition using your webcam.
5. Wait for verification confirmation.
6. The whole process usually takes a few minutes. After successful verification, you will have access to advanced platform features.

How to buy cryptocurrency

You can buy it in different ways:

Use the "Buy cryptocurrency" option on the platform.

1. Select the type of monetary transaction Purchase;
2. Select a cryptocurrency to purchase;
3. Enter the approximate amount of cryptocurrency;
4. For the convenience of finding a counterparty, you can select the frequency of updating the list of counterparties;
5. Use a filter to exclude unreliable and unverified counterparties;
6. Check the Show only Verified Adver tisers checkbox to display only verified counterparties;
7. Select a counterparty; (It is recommended to choose one with more than 1000 transactions and a completion rate of more than 99%)
8. Select a counterparty at the best rate;
9. Conclude a deal to buy cryptocurrency;

Checking a buy order

All information in the order is important!

1. Verification and provided data in the exchange from the counterparty;
2. Price and volumes of cryptocurrency provided by the counterparty;
3. Order duration and payment method;
4. Additional information;
5. Amount to be transferred;
6. The amount that you will receive to your account on the exchange in cryptocurrency;
7. Button to place and confirm an order;
8. Cancel order liquidation button;

After placing an order, you send the specified amount by transfer using the specified details and send a confirmation check to the seller.

It is important to do everything consistently, read all the conditions and comments, and if something is dubious or strange, choose another cryptocurrency seller.

How to sell cryptocurrency

Selling cryptocurrency on ByBit is also simple and the process is not much different from buying.

When selling cryptocurrencies, it is important to confirm the order only after actually receiving funds into your accounts. No matter how much the buyer of cryptocurrency convinces you that he sent money using your details, no matter what documents he shows in confirmation, you do not release the cryptocurrency until you are convinced that funds have actually arrived in your accounts.

Trading cryptocurrency on the exchange

Trading on ByBit involves the use of various tools and products available on the platform:

• Spot trading - buying and selling cryptocurrencies at the market price.
• Futures and margin trading - trading using borrowed funds to increase potential profits.
• Bybit Launchpad - access to new tokens and projects.
• Bybit Earn - investment products for receiving passive income.
• Copy trading - the ability to copy transactions of experienced traders.

ByBit offers a variety of tools and features for both new and experienced traders, providing everything you need to effectively trade in the cryptocurrency market.

MetaTrader 4 on ByBit

MetaTrader 4 (MT4) is a platform that has remained one of the most popular trading platforms in the world, especially among Forex brokers, for over twenty years. Developed by MetaQuotes Software in 2005, it offers traders a wide range of tools for analyzing the market, developing and testing trading strategies. The platform includes a built-in MQL4 programming language, which allows traders to create their own trading bots or purchase them from other developers.

ByBit has integrated MT4 into its trading ecosystem, allowing traders accustomed to the forex platform to use it to trade cryptocurrencies. This integration brought all the advantages of MT4 to the cryptomarket:

Advanced trading functions. MT4 gives traders access to comprehensive trading orders, including stop loss and trailing stop, which help manage risk more effectively.

Testing strategies. The platform offers capabilities for backtesting strategies, allowing traders to optimize their trading approaches.

Graphical tools. MT4 is known for its powerful graphical analysis tools that can be easily tailored to a trader's needs without the need to subscribe to third-party services such as Trading View.

Connecting trading bots. Bot integration occurs through the built-in MQL4, making it easier for traders to automate their trading processes.

Availability and standardization. MT4 is available in both desktop and mobile versions, which ensures convenient trading in any conditions.

ByBit has implemented the MT4 connection through a specially created trading server, which is directly integrated with exchange trading. This allows orders and positions opened in MT4 to participate in exchange trading while maintaining separate accounting from traditional orders on the ByBit platform.

This model has its own risksrelated to potential vulnerability to liquidity attacks, but provides traders with additional trading opportunities.

All financial transactions between the main ByBit account and the MT4 account go through internal transfer mechanisms, which simplifies the management of funds.

In conclusion, we emphasize that the world of cryptocurrencies offers a rich range of opportunities for investing, preserving and increasing capital. You can start your journey by choosing a suitable exchange, mastering trading tools and, most importantly, understanding the basics of security and risks. This will allow you to walk with confidence through this new, but already integral element of the modern financial system.

Go to the ByBit website.