Cryptocurrency, like Bitcoin for example, is a digital or virtual currency that operates on distributed ledger technology called a blockchain and uses cryptography for security. It is decentralised and operates independently of a central bank.
Unlike traditional currencies, cryptocurrencies are not backed by a physical commodity or government, and their value is determined by market demand and supply. Cryptocurrencies can be used to buy goods and services, transfer funds, and trade in markets. Popular cryptocurrencies include Bitcoin (BTC) and Ether (ETH).
Many cryptocurrencies are created through a process called mining. This applies to BTC as well. The process involves solving complex mathematical equations to validate and record transactions on a blockchain. This mechanism is also called Proof of Work (PoW).
Another consensus mechanism that has increased in popularity — as it is more energy efficient — is Proof of Stake (PoS). Instead of mining, PoS relies on network participants validating transactions.
You can buy Bitcoin through several methods, including:
1. Brokerage services: Cryptocurrency brokers allow users to simply buy and sell BTC. A popular example is Crypto.com, trusted by over 140 million users. It is available as both a web platform and a mobile app in the Apple App Store and Google Play Store.
2. Cryptocurrency exchanges: These are online platforms – like the Crypto.com Exchange – where users can buy, sell, and trade BTC using cash or other cryptocurrencies. They offer more complex functions compared to a cryptocurrency brokerage, adding trading instruments like BTC derivatives.
3. Peer-to-peer (P2P) marketplaces: These are platforms where buyers and sellers can directly trade BTC and other cryptocurrencies without the involvement of a third party. For example, Crypto.com Onchain. This is also known as DeFi, short for decentralised finance.
It is important to perform proper research and choose a reputable platform to buy cryptocurrencies. For instance, Crypto.com holds the highest security rating in the industry. In addition, it is advisable to store cryptocurrencies securely in a wallet like the Crypto.com App or Crypto.com DeFi Wallet.
To buy BTC, follow these general steps:
Choose a cryptocurrency platform. For example, Crypto.com.
Create an account on the chosen platform by providing your personal information and ID verification. This is known as ‘Know Your Customer’ (KYC) procedures.
Deposit cash or another cryptocurrency into the newly created account. Crypto.com supports bank transfers, credit cards, debit cards, and cryptocurrency transfers to buy BTC, depending on region.
Navigate to the ‘Buy’ section of the Crypto.com App or Web and select Bitcoin (BTC).
Enter the amount of Bitcoin you’re buying and confirm the transaction.
The Bitcoin you’re buying will then be deposited into your account. From here, it can be transferred to other Web3 wallets or converted back to cash and paid out to a bank account.
It is important to perform proper research and choose a reputable platform to buy Bitcoin. For instance, Crypto.com holds the highest security rating in the industry. In addition, it is advisable to store cryptocurrencies securely in a wallet like the Crypto.com App or Web.
Bitcoin holders can earn rewards on their holdings by using products that offer rewards-bearing accounts, lending services, or regular events/bonuses.
Here are two ways to earn rewards on your Bitcoin with Crypto.com:
With Crypto Earn in the Crypto.com App and Web, you can get up to 5% p.a. on your BTC holdings. Furthermore, multiple deposit terms for BTC and 20+ tokens are available, so you benefit from maximum flexibility.
As a new Crypto.com user, you can earn up to 1 BTC worth of cryptocurrency rewards simply by building your portfolio.
However, it's important to note that earning rewards on your BTC carries risks, including fluctuations in market conditions. Make sure to carefully research and understand the terms and conditions before depositing your BTC.
The purpose of this website is solely to display information regarding the products and services available on the Crypto.com App. It is not intended to offer access to any of such products and services. You may obtain access to such products and services on the Crypto.com App.
Please note that the availability of the products and services on the Crypto.com App is subject to jurisdictional limitations. Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions.
Crypto.com services are provided by Foris DAX, Inc. and its affiliates (NMLS ID 1966158). Cryptocurrencies offered by Foris DAX, Inc. and its affiliates are not FDIC or SIPC insured.
Securities are offered to U.S. persons by Foris Capital US LLC. Foris Capital US LLC is an SEC-registered broker-dealer and member of FINRA and SIPC.
Diversify your portfolio in an instant. Purchase multiple tokens with one trade. BTC serves as the key asset for several popular Crypto Baskets, especially BTC/ETH, Big 3, Freedom, and Trio.
Crypto.com Pay
Earn up to 10% back on your purchases. Easily buy gift cards with BTC, and load your prepaid card too.
TWAP
This useful feature splits up a big trade into smaller orders.
Made for large trades. The time-weighted average price (TWAP) feature automatically breaks up one large trade into multiple smaller orders, minimising price slippage while ensuring your trade gets completed.
Better execution prices. This is a result of reduced price slippage from having several smaller orders, and the TWAP feature aiming to achieve the average market price during your specified time frame.
Greater efficiency. Because the TWAP feature automates splitting up your trade, you’re free to focus on analysing the markets and rebalancing your portfolio.
A built-in volatility shield. When you have many small orders instead of a large one, it’s easier to navigate a volatile market where prices aren’t clearly trending up or down.
Improved trade executions. Smaller trades are relatively easier to complete than a larger one, especially if your initial order would’ve been greater than the liquidity that’s available.
Crypto Earn
BTC rewards are paid out every week. What’s more, enjoy an extra 2% p.a. for BTC and 20+ tokens as a Crypto.com Private member.
It's fast. Setting up a purchase schedule for your favourite token only takes a few taps.
It's fuss-free.
Say goodbye to the hassle of setting up purchase reminders and manually making trades.
It's flexible. Fund any Recurring Buy order with your credit/debit card or cash/crypto balances.
Target Price
You no longer need to glue your eyes to price charts. Target Price orders have no expiry dates, and you can cancel them anytime without any penalty fees or charges.
