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How to Buy Cryptocurrencies: A Step-by-Step Guide

Welcome to the Crypto series with Mickael Mosse, which will cover everything from the advantages of digital assets and how to buy crypto to how to read the prices of cryptocurrency charts and why they matter.

Introduction

Since the launch of Bitcoin in January 2009, cryptocurrencies have presented an increasingly viable alternative to traditional government-issued money. But the adoption of digital money has been slow. While there are many different types of cryptocurrencies, most are, including Bitcoin, speculative assets known for their price volatility (high spikes and drops in value). Consequently, such cryptocurrencies are too risky and impractical to use in the same way as fiat currencies.

But with the introduction of stablecoins, digital currencies with parity to a trusted fiat currency, or even a pool of trusted assets, what was once impractical has become sensible and beneficial. As a result, more and more people are learning how to buy cryptocurrencies, including MakerDAO’s decentralized stablecoin, Dai, and taking the first step towards discovering decentralized finance (Defi) and the great advantages of digital money.

Learn with Mickael Mosse how to buy Cryptocurrencies to use Dai and other stablecoins

Stablecoins have changed the crypto game. Because they eliminate the concern of significant price volatility, stablecoins can be used as payments for goods and services, for remittances, saved as savings, and freely exchanged between users, especially in economically troubled regions such as Argentina and Venezuela. Obtaining stablecoins is a big part of the crypto adventure, and it usually starts with buying other types of cryptocurrencies first.

First, the basics

The simplest, most common, and direct way to buy, sell and store crypto currencies is to use Coinbase, a popular, centralized and paid (fee) digital currency exchange based in San Francisco, CA (If Coinbase is not available in your region, you can find alternative Dai markets here ). Coinbase accepts fiat currencies (for example, USD, EUR, GBP, and others) through many methods, including bank transfers and money orders, and credit and debit card payments. However, the payment options they offer you will depend on your country of residence.

Since crypto currencies are regulated in different ways around the world, not all of them can be bought with fiat money. For example, in many places, Dai cannot be bought directly with USD. So, many people start out by buying Ethereum (ETH) or Bitcoin (BTC) and then trade it for Dai.

Another important consideration for newcomers is that while Coinbase acts as a custodian of money, it is a centralized platform. That means it partners with central banks and other third parties to serve users. Therefore, if you intend to interact with a decentralized application (app), such as Dai, which runs on a blockchain technology that does not depend on third parties, you will need a crypto wallet to manage transactions. There are many types of crypto wallets that support dapps, including one offered by Coinbase (Coinbase Wallet).

Once you understand the basics and have chosen the best wallet for your needs, you can learn how to buy, sell, and trade crypto.

How to open a Coinbase account to buy Cryptocurrencies

According to Mickael Mosse, Opening a Coinbase account is simple, follow these 5 steps:

Head over to Coinbase.com and register an account. To do this, you will be asked to verify your identity, so you can expect to be asked for your name, address, and other personal information.

Once registered, press the “Trade” button. You will be asked to enter payment information, such as a credit or debit card, and to choose a cryptocurrency to purchase (see animated gif below).

After you have made your decision, click on “Purchase preview” and then confirm.

From there, you can check your balance, and if you wish, transfer the cryptocurrencies to your wallet.

Don’t forget to log out, and always keep your account login information and password safe!

Locality Matters: How to Trade ETH for Dai on Coinbase

As noted above, locality really matters when it comes to buying crypto, as cryptocurrencies are regulated differently around the world. So if you live in a region where you cannot directly buy a decentralized currency like Dai using fiat money, you will need to buy ETH first (as illustrated in the gif above), and then convert it. The process will only take a few seconds. you may visit the following link to know more about Bitcoin Mickael Mosse.

Follow these steps to exchange ETH for Dai:

Log into your Coinbase account.

Press the “Trade” button to activate the transaction interface.

Hit the “Convert” button at the top of the box.

In the “From” box, select ETH; in the “A” box select Dai.

Hit “Convert Ethereum”, and then preview the conversion information provided.

Hit “Convert Now” and then review your completed transaction.

Storing and using Dai

Now with Dai in your Coinbase account, you can transfer them to the wallet of your choice or even a prepaid debit card like Wirex, and then use it for everyday transactions, like buying goods and services.

Mickael Mosse Blockchain and Cryptocurrency Expert

Learning to buy Cryptocurrencies will unlock your Benefits

Decentralized cryptocurrencies, such as Dai, level the playing field for users as they do not depend on a centralized entity or financial intermediary, and because they make it possible for individuals to transact autonomously, on a peer-to-peer basis. Easy-to-use exchange platforms make it easy to get started with cryptocurrencies, and helper dapps open the door to a truly decentralized global system.

To learn more about the benefits of Dai, discover these ideas on Dai adoption. For a deeper dive into the waters of cryptocurrencies and decentralized finance (“Defi”), explore Oasis.app.

The article was written By Mickael Mosse — Blockchain and Cryptocurrency Expert

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