A Quick and Simple Guide to Investing in Algorand (ALGO)
It’s expected that there will be more than 1 billion global cryptocurrency users by the end of 2022.
The world of crypto is growing fast, and as more people get invested it’s important to understand how you can join them. There are thousands of different cryptocurrencies available, and investing in Algorand (ALGO) could be the best way to start.
To find out how to invest in Algorand, keep reading.
1. Find an Exchange
The first step to investing in ALGO is picking an exchange. For the most part, crypto exchanges are fairly similar but they do, however, offer different coins. To invest in Algorand you need to find an exchange that provides it.
VirgoCX is a Canadian exchange that you can use to buy Algorand, Litecoin, Bitcoin, and many other cryptocurrencies. You can even do this through your smartphone using their app.
2. Payment Option
Exchanges have various ways you can pay for crypto. The easiest way for beginners is usually with a debit/credit card or through a direct bank transfer. These payment methods may have certain fees, so look into these before making a purchase.
Depending on the exchange you’re using you might have to provide other information such as ID or maybe even extra details validating your source of funds.
3. Buy Your Algorand
Once your account and payment method are set up you’ll be able to purchase some Algorand. During the previous stages, you may have to make a small transfer to ensure funds from your bank can go through to your exchange without any issues.
Select your payment method, and enter the amount you want to purchase in either your fiat currency or in Algorand. You will be shown the amount you’ll be spending and the amount of ALGO you will receive after fees. Confirm the payment and the crypto will be sent directly to your exchange wallet.
4. Set Up a Wallet
Some people choose to keep their crypto stored on an exchange, but it’s typically a better idea to transfer it to another wallet to make it more secure. Beyond using the exchange, there are two types of wallets you can use.
Sometimes called a hot wallet, these work online usually as a browser extension or a smartphone app. The main benefit is that they are easy to use and you can make transfers quickly. The most notable drawback of these is that they may be vulnerable to hackers.
A soft wallet is more secure than an exchange as it will generate a 12-24 word seed phrase when you set it up. If you get locked out of your wallet this seed phrase is the only way you can get back in. Make sure you write it down and keep it somewhere safe.
Also known as a cold wallet, this is a physical device capable of storing crypto. The crypto on a hard wallet can only be accessed when it’s physically connected to a computer, making it much more secure.
The downside is that making transfers will take a bit longer, but if you have large amounts of crypto it’s worth using one of these for the added security.
Investing in Algorand Answered
Investing in Algorand can be a great way to enter the world of crypto. You should always research a coin before investing, and be aware of potential scams so that you don’t have your funds stolen.
If you want to read some more tech articles check out some of our other blog posts.