How to Buy/Invest in Cryptocurrencies

March 13, 2023

Brief Introduction of Cryptocurrencies

Cryptocurrencies are a class of digital assets developed using cryptographic methods that may be bought, sold, or traded securely.

They function as a peer-to-peer system that makes it possible for anybody, anywhere to send and receive money.

This type of digital currency may be used for transactions without the need for a monetary institution like a central bank, in contrast to traditional fiat currencies that are governed by national governments.

How to Buy Crypto?

1. Centralized Exchanges (CEXs)

Centralized cryptocurrency exchanges serve as a middleman between buyers and sellers. They generate revenue through commissions and transaction fees. This type of platform makes it easier to purchase and sell cryptocurrencies, either for fiat money like the US dollar or between other digital assets like BTC and ETH. They act as reliable brokers in transactions and frequently act as custodians, preserving and protecting your money.

The most popular way for investors to get started in the cryptocurrency market is still through a controlled exchange. It's crucial to consider a variety of factors when choosing an exchange, such as the trading pairs offered, the volume of trades, and the security protocols that exchanges have implemented to safeguard their users.

2. Decentralized Exchanges (DEXs)

A decentralized exchange, or DEX for short, is a peer-to-peer marketplace where cryptocurrency traders conduct transactions directly with one another. DEXs were developed to remove the need for any authority to monitor and approve trades made inside a particular exchange. 

To purchase cryptocurrency on a DEX platform, one can simply follow these basic steps:

  1. Download a self-custody wallet. Make sure to download it from a safe source.

A user must first choose which network they wish to utilize before using DEXs since there is a transaction charge associated with every trade. Select a wallet that works with the chosen network and fund it with that wallet's native coin. In a particular network, transaction costs are paid using a native token.

  1. Secure your Security/Seed Phrase.

If you forget your password, the majority of digital wallets will provide you with a secret security or recovery phrase that you may use to access your wallet or restore your account and this phrase often has twelve words. No one else should know your security phrase. Therefore, make sure it is safely placed out of others' reach by keeping it in a safe place offline like writing it on a piece of paper

  1. Fund your wallet with tokens

After picking a wallet, it will require funding with the tokens used to cover transaction costs on the network of choice. These tokens must be purchased on centralized exchanges. Users just need to withdraw their tokens from their accounts and deposit those tokens into their own wallets.

3. Hybrid

The hybrid cryptocurrency exchange was developed as a result of the drawbacks of both centralized and decentralized crypto exchanges. The problems with centralized and decentralized exchanges are addressed by hybrid cryptocurrency exchanges (HEX = Hybrid Exchange). The accessibility and liquidity of CEX platforms, as well as the privacy and security of DEX platforms, are their key points of emphasis.

To give you a background of how it works, let’s say that Person A wants to sell his cryptocurrencies, and Person B wants to purchase cryptocurrencies from the hybrid cryptocurrency exchange. The Hybrid exchanges would process incoming orders using encryption. The order book will have a log available on the blockchain. To decode the instructions and deliver them to the appropriate engine, the trader can send their private keys to the order pool. All paired trades will be monitored by the blockchain. Lastly, the cash and cryptocurrency balances will change depending on the transactions made.

4. Platforms with On and Off-Ramp Capabilities

Altswitch has a visionary and innovative team focused on introducing to its investors the most convenient way to earn any coin of their choice. Users don't have to go through multiple steps to CEX and P2P. Soon, users would be able to do it directly via Altswitch’s software wallet. This will be possible through 3rd party DeFi and CEX platforms. 

Moreover, AltSwitch recently deployed a state-of-the-art management dashboard wherein investors may keep track of the overall amount of rewards they have received, the rewards they have claimed or have not yet claimed, and the date of the next reward distribution cycle. It will also enable the community to access a complete record of their rewards transaction history and eventually will be further developed in ways that can help users maximize their rewards earnings and utility.

How to Earn Crypto Passively

1. Staking

The easiest way to earn interest from your crypto is through staking. In this process, you “stake” your coin/token in a staking pool, which usually means locking up your crypto within a platform’s designated contract address. This method is the easiest because if you already planned to “HODL” your crypto, you might as well earn interest from it.

2. Yield farming

Investors lending money to a DeFi platform or enterprise to obtain high “yield” or interest return is referred to as yield farming. The lending process is then formalized through protocols, utilizing a smart contract, giving the investor the ability to collect interest. It might be stated simply as "rewards for early adopters". It happens in a way that investors put their tokens into a liquidity pool, a unique kind of smart contract, to participate in yield farming. Those that supply liquidity in this way are compensated with a portion of the fees made by traders who utilize the pool.

3. Liquidity Mining

Liquidity mining is a process wherein cryptocurrency owners can earn incentives like extra tokens and revenue from fees by lending their assets to a decentralized exchange. These benefits frequently come from the costs that traders using the DEX incur when they interact with the DEX.  

4. Crypto Lending

Users can earn a sizable amount of interest by depositing cryptocurrency to a lending platform, frequently more than traditional banks can. In addition to being lent to borrowers who cover a portion of the interest, the money deposited can also be invested by the lending platform in other ways to generate further income. 

5. Airdrops

One of the simplest and risk-free methods to generate passive money is through airdrops. All you need is a working understanding of the cryptocurrency industry. Airdrops are token distributions in which more money is given to “HODLers” and existing investors. Participation in the industry such as through new project launches, vote incentives, bug bounties, and marketing initiatives all involve airdrops.

6. Crypto Savings Accounts

Interest-bearing cryptocurrency accounts are available from a number of CEXs and other platforms that focus on cryptocurrencies. These accounts resemble traditional interest-bearing fiat bank accounts quite a bit. In essence, the platform will lend, stake, or invest the cryptocurrency money that you deposit, paying you interest on the earnings made.

7. Affiliate Programs

In order to comprehend crypto affiliate programs, it is important that you understand affiliate marketing.  Affiliate marketing is a method of earning passive revenue by advertising the goods or services of other people. You receive a commission each time someone purchases these goods or services through your referral.

Numerous cryptocurrencies projects provide referral systems that reward you for each person you send their way. Depending on the project, a referral program's potential earnings range from modest to rather considerable.

8. Dividend tokens 

For holding a crypto dividend token, you can earn cryptocurrency dividends or rewards, which are forms of passive income. Dividend tokens provide regular distributions of cryptocurrency dividends or profit-sharing from a project's revenue or fees. The amount received is determined by the quantity of a crypto asset owned. An example is the AltSwitch token. AltSwitch’s ecosystem has a dividend tracker wherein they have a supplemental smart contract that is in charge of tracking all dividends of each holder.


There are many factors to consider in buying or investing in cryptocurrencies. As with any investment, there are inherent risks associated with crypto. Although cryptocurrencies  could be considered more high-risk than investing in traditional markets, they can also yield great reward when done correctly. Make sure you only invest what you can afford to lose and that you're okay with the market's volatility before you begin. After that, just carry out the required research to make  better educated choices and start your crypto investing journey!

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