So you've heard about altcoins and want to buy some? With over 7,000 cryptocurrencies besides Bitcoin, the choices may seem overwhelming for beginners. But have no fear! This guide will walk you through the basic steps for buying altcoins and recommend some of the best places to make your first purchase.
Cryptocurrency Exchanges
The most popular place to purchase altcoins is through cryptocurrency exchanges. These are online platforms that allow you to exchange fiat currencies like dollars or euros for digital assets like Bitcoin or altcoins. Here are some top recommendations:
Coinbase
Coinbase is one of the largest and most trusted exchanges, making it a great choice for beginners. They support over 50 major cryptocurrencies that you can buy with fiat currency. It has easy-to-use interfaces and accepts various payment methods like bank transfer or debit/credit card.
Binance
Binance is the largest crypto exchange by trading volume. With an extensive list of altcoins and low fees, it's appealing for more experienced traders. New users may find the platform complex at first but Binance Academy offers free classes for getting started.
Kraken
Kraken offers high-security standards, a wide selection of altcoins, and the option to stake certain proof-of-stake coins. The fees are reasonable and they accept fiat deposits. The interface may seem technical for total beginners.
Decentralized Exchanges
Decentralized exchanges (DEXs) are an alternative option that allows peer-to-peer altcoin trading without an intermediary. Some top DEXs include:
Uniswap
Uniswap pioneered the automated market maker model. It offers a simple interface for swapping ERC-20 tokens and has become the most widely used DEX.
PancakeSwap
PancakeSwap uses a similar model as Uniswap but is built on the Binance Smart Chain. It offers faster trades and lower fees than Ethereum-based DEXs.
Things to Consider
Here are some tips when choosing an exchange or platform:
Security - Research the platform’s security practices and protocols
Supported coins - Make sure they list the altcoins you want
Fees - Compare commission fees, gas fees, exchange rates
Features - Check if advanced trading or wallet options meet your needs
Reputation - Read reviews and see how responsive their customer service is
And never invest more than you can afford to lose! The crypto market is highly volatile, so educate yourself and use prudent judgment when buying altcoins.
Conclusion
Now that you know the top places where beginners can start buying altcoins, it’s time to join the world of crypto! Register for an account at one of the recommended platforms, connect your payment method, and make your first altcoin purchase.