How To Buy Crypto As An Expat In 2021 – that will be the topic of today’s article.
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The best time to consider your financial situation is when you are moving to a new country.
With cryptocurrency like Bitcoin trending in recent years, the benefits of taking advantage of this investment cannot be overemphasized. To start, cryptocurrency is a type of digital currency, and it’s typically not issued by a central government or bank. So, why do people take advantage of this market?
Of course, transactions from cryptocurrency are similar to traditional money transfers or credit card payments. However, instead of moving the funds through the banking system, money in the crypto space move through a specific cryptocurrency network, thus removing banks as the middleman.
More so, when it comes to the types of currency, they come as virtual currency like Ethereum, Bitcoin, and many others, to mention a few. Additionally, Cryptocurrency is something of value that you can exchange and trade similar to stocks. So, just like reporting income on a tax return when you sell stocks, you might need to report your cryptocurrency assets on a tax return as an expat.
If you’ve been surfing the internet to get the right information about buying cryptocurrency in today’s digital world, worry less as you’ve landed on the right platform. Now, at any time during 2020, did you hear people selling, sending, or acquiring any cryptos? If that sounds like a YES, this is the right article.
Of course, you need to keep your head up and focus on how to buy crypto as an expat in 2021. Today, we have compiled a full guide on how to buy cryptocurrency as an expat. So, be rest assured that you’ll understand how crypto works in this article. Also, we have compiled the best ways to buy crypto. Read further to get a glimpse of what we’re saying.
Why Is Cryptocurrency a Good Investment?
Before you say goodbye to your dollars and hello to Bitcoin, Dogecoin, or Ethereum, it’s quite essential to understand why crypto is a good investment. In no doubt, the crypto market is increasing every day, and its growth has shown how valuable it is. Without further ado, let’s quickly walk you through the reasons.
High Liquidity Ratio
If you’re planning to enter the crypto world, you should have been looking at the current market stats and not just jumping to invest. Does that sound great? Of course, the rate of cryptocurrencies has been growing steadily over the past few years. In fact, the leading cryptocurrencies like Bitcoin and Ethereum have shown their importance by consistently delivering good results. And for this fact, the profit generated by Bitcoin alone has been astonishing.
Flexibility and Independence
The crypto market is undoubtedly flexible and decentralized to a large extent. In today’s digital world, people are working on DeFi to ensure a more decentralized connection while trading. That being said, you can buy, sell, or exchange your fiat currency by investing in cryptocurrencies. Additionally, you don’t have to ponder over the bank charges.
Unlimited Choices in Chosen Cryptos
When you’re investing in any field, the best thing to consider is unlimited choices. This means, the more choices you have, the better the investment options. In today’s digital world, there are more than 2000 cryptocurrencies in the world. This way, the cryptocurrency market is expanding every day, and if someone creates a new coin, it is added to the market; that’s why you don’t have to boggle your mind.
The primary reason for investing in cryptocurrencies in today’s 21st century is that the future is bright. More so, the advancement in technologies has contributed to why everyone wants to invest in crypto. And moreover, it is a beauty of technology that’s never out of date and continuously updated.
As being said, crypto is a game-changing central point in the development of crypto. Meanwhile, the mining of new cryptocurrencies is also in progress, and the building of new decentralized platforms is also in place.
Viable Form of Payment
Many big companies in today’s modern world are starting to invest in cryptocurrency. In fact, they’re making their payments in the form of crypto. This way, the crypto space is giving more push into the market and at the same time helping it flourish. So, you won’t need to stay out of the market when it takes a giant leap. Companies such as Wall Street, Tesla, and others are also stepping into the crypto world.
Transparency and a Secure System
Well, the traditional banking system also has a transparent and secure system, but crypto space tends to be more secure. They are popular due to their thorough transparency, owing to open-source and publicly verifiable technology. Moreover, it’s considered a long-term investment despite the volatility and fluctuations that characterize the crypto market.
Resistant Store of Value
Another common reason why people love to invest in cryptocurrency is the desire for a reliable, long-term investment opportunity and store of value. Unlike fiat money, many cryptocurrencies have a limited supply, capped by different mathematical algorithms. And this makes it impossible for any political body of government agency to dilute their value through inflation.
How to Buy Crypto as an Expat
Buying cryptocurrency is quite simple, even though you’re an expat. Since it’s online and being widely known as a digital currency, all you need is to navigate to the right platform for buying and storing your cryptos in a safe wallet. In no more talk, below are the ways to buy cryptos as an expat in today’s world.
With your PayPal, you can easily buy cryptocurrency anywhere in the world. And you can even buy or sell the cryptos using the same app that you’ve come to trust with your online payments. On the other hand, you might pay $0.50 for trades involving less than $25 and probably decline to 1.50 percent for trades more than $1,000. Though you’ll enjoy a spread mark-up, and you might not pay a fee for holding cryptocurrency in your account.
Coinbase is a specialized exchange known in the world. They allow traders to own digital currencies directly without the need for a third party. While using this crypto exchange as an expat, you’ll be able to trade dozens of the most cryptos, including Bitcoin, Ethereum, Bitcoin Cash, and many others, to mention a few. For extra security measures, Coinbase allows it customers to store coins in a vault with time-delayed withdrawals. However, they charge a spread fee of 0.05 percent and then add on a transaction fee that varies with the funding source and the size of your transaction.
3. Trading App
A trading app is another thing to put into consideration while planning to buy any cryptocurrency. Here, you can pick up a few cryptos like bitcoins with no direct commission by using a trading app such as Robinhood or Wellbull, though you’ll end up making up for it with a spread markup in the long run.
However, Robinhood takes its best tricks, with no commission, and this also applies to cryptocurrency as well. That being said, you’ll have access to more than a dozen of other currencies and a feature that other brokers don’t have. Meanwhile, you’ll be able to buy stocks, ETFs, and options while you’re using the platform.
On the other hand, Webull lets you trade a few cryptos, including Bitcoin and Ehthereum. Nonetheless, you’ll pay a spread markup of 1 percent on each transaction while you’re trading stocks, ETFs, and other options available in the crypto world.
Top 5 Cryptocurrencies in the World
There are many types of cryptocurrency in today’s digital world. While Bitcoin has not only been just a trendsetter, there are other cryptos to consider. Beyond that, the field of cryptocurrency is always expanding, and the next great digital token may be released tomorrow. Below are the top 5 to invest in.
1. Bitcoin (BTC)
Bitcoin is one of the top five cryptocurrencies with many investors because it’s extremely volatile. However, if you’re willing to take the risk, first make sure you understand what you’re investing in and always have a crypto investment strategy. Also, make sure you aren’t investing simply because you fear missing out on something. This is because; the price may go against the traders in some cases.
2. Ethereum (ETH)
Ethereum is another cryptocurrency to put into consideration. It is a decentralized software platform that enables smart contracts and decentralized applications to be built and run without any interference, fraud, or control from a third party. More so, the goal behind this cryptocurrency is to create a decentralized suite of financial products that anyone in the world can access freely regardless of nationality, faith or ethnicity.
3. Litecoin (LTC)
Litecoin was launched in 2011, and as of today, it’s now the first cryptocurrency to follow in the footsteps of Bitcoin and has often been referred to as the silver to Bitcoin gold. Additionally, this cryptocurrency is based on an open-source global payment network that’s not controlled by any central authority and uses scrypt as a proof of work that can be decoded with the help of a consumer-grade CPU.
4. Cardano (ADA)
Cardano is known to be an Ouroboros proof-of-stake cryptocurrency that was created with a research-based approach by engineers and cryptography experts. Due to the rigorous process that occurs while creating this cryptocurrency, it seems to stand out among its proof-of-stake peers as well as other large cryptocurrencies traded in the world.
Not only that, but they aim to be the world’s financial operating system by establishing decentralized financial products similar to Ethereum as well as providing solutions for chain interoperability and legal contract tracing.
5. Polkadot (DOT)
Polkadot is the last on our list. It’s a unique proof-of-stake cryptocurrency that’s aimed at delivering interoperability among other blockchains network. Here, their core component is its relay chain that allows the interoperability of varying networks today. This crypto was created by Gavin Wood, another member of the core founders of the Ethereum project who had different opinions on the project’s future.
Buying Cryptocurrency as an Expat
If you’re new to the world of crypto, this section is what you need right now. So, please pay attention if you’re planning to relocate from your home country. Thankfully, it’s pretty simple to learn the ropes, and you can start investing in cryptocurrency by following the steps we have compiled below.
● Choose the Right Crypto Exchange
To buy cryptocurrency, choosing the right crypto exchange is one of the first things to consider. While doing this, ensure you review the best cryptocurrency exchanges to pick the right one that meets your requirements and offers what you want. Meanwhile, when you’re buying cryptocurrency, few things could differentiate other crypto exchanges from one another. Before we move further, let’s quickly explain the meaning of cryptocurrency exchange and cryptocurrency broker.
Cryptocurrency Exchange is known as the platform where buyers and sellers meet to trade different kinds of cryptocurrencies. These exchanges often have relatively low fees, but they tend to have a more complex interface with multiple trade types and advanced performance charts.
However, if you’re new to cryptocurrency, the whole concept could be intimidating for new crypto investors. Some of the most well-known crypto exchanges in the world as of the time of writing this article include; Coinbase, Binance US, Gemini, and many others, to mention a few.
As a new trader entering the world of cryptos for the first time, these basic terms are what you need to understand to satisfaction and credibility. However, Crypto brokers are the companies that take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you. On the other hand, Robinhood and SoFi are the two of the most well-known crypto brokers.
● Create and Verify Your (New) Account
Once you’ve decided on the right cryptocurrency exchange that you’d love to use, it’s highly essential to create your account. Afterward, verify it by submitting the necessary documents. Depending on the platform and the amount of money you plan to invest with, you may have to verify your identity as it constitutes an essential step to prevent fraud and meet federal regulatory requirements.
Meanwhile, you may not be able to buy or sell cryptocurrency until you complete the verification process. Sometimes, the platform may ask you to submit a copy of your national identity card, passport, or driver’s license.
● Deposit Cash to your Account
If you want to buy cryptocurrency, you must be ready to make some deposits. Some platforms might require you to have a certain amount of money in your wallet before you can withdraw, while others will state that you need a certain amount to begin trade. Either way, you may have to wait a few days before you can use the money you deposit to buy your choice of cryptocurrency.
● Place your First Order
Before you place your first order, make sure you understand the concept of cryptocurrency. If possible, read through the ways to buy the different types of cryptos as they have more volatility than each other. Again, once there’s money in your account, you’re ready to place your first cryptocurrency order. While there are hundreds of cryptocurrencies to choose from, it’s quite better to remain careful while trading.
● Select a Better Storage Method
Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp (FDIC). This means they are at risk of theft or hacking in the long run. With that being said, you can even lose your investment if you forget or lose the codes to access your account, as millions of dollars of cryptos like Bitcoin have been.
Alternative Ways to Buy Cryptocurrency Today
While cryptocurrency remains a major trend as of today, it’s a volatile and risky investment choice for anyone looking to take advantage. If investing in crypto on an exchange or via a broker doesn’t feel like the right choice for you, below are other options to invest in Bitcoin and other cryptocurrencies indirectly.
1. Use Crypto Exchange-Traded Funds (ETFs)
ETFs are extremely popular investment tools that let you buy exposure to hundreds of individual investments in one fell swoop, unlike the normal buy options. This way, they provide immediate diversification and are less risky than investing in normal individual investments. As of 2021, the U.S. Securities and Exchange Commission (SEC) is reviewing three cryptocurrency ETF applications from WisdomTree, VanEck, and Kryption.
2. Investment in Companies Connected to Cryptocurrency
This is another alternative way to buy cryptocurrency in today’s world. If you’d rather invest in companies with tangible products or services and that are subject to regulatory oversight, but you still want exposure to the cryptocurrency market, buying the stock of companies that use or own cryptocurrency or blockchain is crucial.
Furthermore, as with any investment, ensure you consider your investment goals and current financial situation before investing in any cryptocurrency or individual companies with a heavy stake in it. This is solely because; cryptocurrency can be extremely volatile, so be aware that it’s a very speculative investment.
Why Cryptocurrency is the Future?
As of today, it’s widely known that that cryptocurrency is a growing ecosystem that has slowly been making headways into the world’s traditional financial systems. According to research and statistics, the number of users of various cryptocurrencies has grown by 66 million in recent years.
However, both private and public sectors are warming up to the idea of adopting cryptocurrencies in their financial dealings, such as value storage, making payments, and investment packages. Now, to tell you that cryptocurrency remains the future of finance, take a look at the tips and concepts explained below.
Banking Benefits and Transactions
Banking benefits and transactions are one of the reasons why cryptocurrency remains the future. As this digital currency evolves day by day, acceptability and accessibility continue to be spotlighted. Aside from this fact, the cryptographic technique and technology also keep evolving and advancing, which leads to the creation of a better and stronger cryptocurrency financial system. Some of the banking benefits and transaction advantages include the following;
Privacy & Security
It allows for anonymity while transacting as the system is powered by the use of different cryptographic techniques. This method, on the other hand, ensures data protection to avoid information falling into the wrong hands. This way, all the data transmitted is literally hidden from unauthorized persons.
Furthermore, transactions carried out using cryptocurrency can’t be changed or forged, and it’s transmitted in extremely high-security networks. This way, cryptocurrency is safe, unlike the traditional banking system where your transactions can be traced.
Efficiency and Access
In a world where there’s still a large population without access to formal financial services, cryptocurrency offers a viable and concrete solution. In fact, conventional banking is restrictive due to a lack of personal identification documents, account opening and operating funds, or proximity to an institution. With that being said, people with no bank accounts worldwide can now tap into the financial model that offers instant access from anywhere and even fast processing of transactions.
Frequently Asked Questions about Cryptocurrency
Is cryptocurrency a good investment?
Of course, yes! As of today’s digital world, cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. Not only that, but it’s also safer but has potential risk as the price could go against the traders in some cases. It’s a good investment but be ready for a change too.
How much do I need to invest in crypto?
Generally speaking, we recommend you invest the money you’re willing to lose. Since cryptocurrency involves risk, it’s advisable not to invest your life-saving capital. This means you can invest below 5 percent of your portfolio. Once it’s over 5 percent, you’ll start to see the volatility swings affect the rest of the traditional portfolio in due time.
Which crypto can make you rich?
When it comes to buying cryptocurrency, we don’t have the exact one that could make you become rich. This is because; there are market fluctuations, and we can’t predict what will happen in the nearest future. This means you have to follow the trend to know the right crypto to invest your money on.
From what we’ve explained in this article, you should know that you’ll need a wallet, an online app, to buy cryptocurrency. Generally, you need to create your account, choose the right broker, fund your wallet, and place an order. You can refer to this platform to know more about crypto in recent years.