How to Manage and Buy Cryptocurrency

Released on

Apr 6, 2020

If you’re new to the world of cryptocurrency, fret not! We’re here to guide you on managing and buying cryptocurrency in a simple and safe way. Find out where you can buy cryptocurrencies, how to purchase them, and how to safely store your cryptocurrency using industry best practices.

Key takeaways

  • You can buy cryptocurrencies from crypto exchanges, usually via wire transfers or credit card payment
    -Safety comes first, make sure to always check that the exchange you are using is safe and legitimate
    -Store a “spending” amount of cryptocurrencies in a convenient, easily accessible hot wallet so that you can use your cryptocurrencies instantly
    -Safeguard most of your cryptocurrency holdings in a cold wallet so that you do not lose them

Where can I buy cryptocurrency?

Generally, you can buy cryptocurrencies on what we call exchanges, most of which operate online. Exchanges enable users to trade assets such as fiat money (such as US dollar or euros) for cryptocurrency, and vice versa.

How to purchase cryptocurrencies

Currently, most cryptocurrency exchanges allow you to purchase cryptocurrency using bank transfers (or wire transfers) and/or credit cards.

Regardless of whether you use a wire transfer or credit card, you generally need to first set up an account with the exchange and complete Know Your Customer (KYC) verification.

Buy crypto with wire transfer

For wire transfers, you would then transfer the fiat money into the bank account of the exchange to top up your account. This might take a few working days. Once the money has been processed, you will be able to use it to purchase cryptocurrency on the exchange.

Buy crypto with credit card

For credit card purchase, you would be required to key in your credit card details and authorise the purchase, similar to how you might buy an item on an online store. The benefit of using a credit card is that you are able to purchase cryptocurrency instantly, without having to wait a few working days for the funds to be wired over. However, there is typically an additional card fee charged for this convenience.

Safety first when buying crypto

When purchasing cryptocurrency, always make sure that you are doing so on a legitimate and trustworthy exchange platform. You can verify this by looking up online reviews, and by checking for official business licenses.

If you are a resident of Europe, you can buy bitcoin directly from the TenX app in a few simple taps. With the E-Money License granted by the Financial Market Authority of Liechtenstein in 2019, TenX is able to operate in a regulated and compliant manner across the EU and EEA markets.

How to store cryptocurrencies

Cryptocurrency is the first digital currency that you can truly own, completely. You have full control over your money with cryptocurrency. Because of this, you also have the responsibility of keeping your cryptocurrency safe.

It is recommended that you store your cryptocurrencies both in a hot wallet and a cold wallet.

Store a ‘spending’ amount of cryptocurrencies in a hot wallet

For convenience and easy liquidation, you may want to store an amount of cryptocurrencies in a hot wallet so that you can spend it easily when needed.

At TenX, we recommend that you store just enough crypto in your TenX Wallet for a typical week's worth of spending using the TenX Visa Card. You can top up your wallet any time it is running low, as there are no fees involved with depositing or storing cryptocurrencies on TenX.

Note that your cryptocurrency balance on exchanges are also stored in hot wallets, and according to best practices should not be held there in the long-term.

Store majority of cryptocurrencies in a cold wallet

A cold wallet is the safest way to store cryptocurrency, and as such we recommend that you store most of your cryptocurrency in a cold wallet.

Interested in learning more about setting up your cryptocurrency storage? Confused about the differences between a hot wallet and a cold wallet? Read the Ultimate Beginner’s Guide to Storing Cryptocurrency.

Step-by-step guide on how to buy bitcoin

Ready to start buying bitcoin?

  1. Tap on the Buy button in the TenX app home screen. Buy bitcoin on TenX step 1
  2. Purchase up to EUR 50 of BTC right away, or complete full account verification to buy up to EUR 500/month. Buy bitcoin using TenX step 2
  3. Enter the amount that you want to buy. Buy bitcoin using TenX step 3
  4. Complete payment and receive your bitcoin instantly.