How to Buy Algorand - Beginner's Guide
Buying Algorand Coin: A Step-by-Step Guide
Are you interested in buying Algorand, but not too sure where to begin? You’re not alone. The Algorand asset is a hugely popular cryptocurrency to buy. But, for beginners, this can be quite intimidating.
Like many people in 2021, are you intrigued by Algorand and its vision of 'Technology designed for the FutureFi?' If yes, then you may already know what Algorand has to offer.
But, if not, please let us give you a brief introduction. Algorand (ALGO) is a crypto blockchain-based platform that provides users with a level of scalability, protection, and decentralization all at the same time. In order to accomplish this, a consensus protocol known as pure proof-of-stake is applied.
It was founded by Turning award winner and famous cryptographer Silvio Micali and his team back in 2017. In essence, Micali and his team strive to develop a new technological world that will empower and give financial control to its users.
If you are intrigued about how to invest in Algorand’s native token ALGO - then our article is here to help you. We will cover various points such as; trading practices, broker regulations, and, most importantly, a step by step guide on how to buy Algorand.
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- Buy Algorand Coin in 5 Steps - Quick Guide
- Step 1: Choose an Online Algorand Broker or Exchange
- Step 2: Come up With an Algorand Investment Plan
- Step 3: Open an Algorand Broker Account
- Step 4: Deposit Some Funds
- Step 5: Set up an Algorand Order
- Step 6: Storing Your Algorand
- Step 7: Selling Your Algorand
- Other Ways to Buy Algorand in 2021
- How to Buy Algorand 2021 - The Verdict
Buy Algorand Coin in 5 Steps
Before you can buy Algorand, you need to find a crypto provider that can facilitate your purchase. The best way to access Algorand Token is via a regulated broker such as eToro - which offers you commission-free access to this asset.
Do you want to get started immediately and skip all the added extras? Not to worry, we have included a five-step guide on how to buy Algorand quickly and efficiently.
Step 1: Open a crypto account.
Step 2: Deposit Funds into your account.
Step 3: Find Algorand (ALGO) from the list of supported cryptocurrencies.
Step 4: Type in the amount of ALGO you want to purchase.
Step 5: Confirm your buy order to complete the purchase of Algorand.
Depending on your financial goals, you can then decide to store your ALGO coins in a secure digital wallet for long-term investing or trade them for short-term profits.
Now, let us start diving into how to buy Algorand by carefully considering each of the steps mentioned above.
Step 1: Choose an Online Algorand Broker or Exchange
When deciding on how to buy Algorand, the first step is to find an online crypto broker or exchange. At this time, there are a number of platforms out there that support the ALGO coin.
However, choosing a broker that works in a reputable and straightforward manner can come with its challenges. That is why we have put together a brief explanation of some crucial factors to consider when making your decision on where to buy ALGO tokens.
First up is regulation, and this factor continually proves to be an important one when looking to invest in ALGO. Or any cryptocurrency coin, for that matter. Just like any business that provides financial instruments to customers, it must comply with a strict set of rules and regulations.
In the case of how to buy Algorand, you are ideally looking for a broker that the FCA, CySEC, and ASIC currently regulate. If you are in the US, you should also consider looking to see if the broker is registered with FINRA.
You may think that this sounds like a hassle, but here are some other points that will show just how vital a regulated ALGO platform can be:
- As we mentioned, a secure and thorough regulatory framework must be adhered to by the broker. This means that if something untoward were to happen to your capital or personal data - you would be better financially protected.
- Some brokerage sites will also offer a detailed compensation protection plan to help put their user's minds at ease.
- On top of a protection plan - brokerage platforms must ensure they store their client's capital in banks that differ from their own. By doing this, brokers are making sure that there are never any crossed wires regarding their client's hard-earned cash.
As you can see, by opting for a regulated broker, you are protecting your Algorand investments with top-notch security. You can also have peace of mind that you are participating in a fair and even trading arena.
Now, it would be foolish for us to skip over unregulated Algorand exchanges as there are many out there.
So let's dive in.
- Unregulated exchanges allow you to trade ALGO against an array of both crypto and fiat-based currencies. However, the majority of these exchanges are unregulated and can open themselves up to some nefarious activity.
- Third-party brokers can offer you trading with leverage benefits. Again, this isn't something we would openly suggest. Although it may seem straightforward, we have seen newbies fall into this trap and quickly lose more than they could afford.
- As we touched on above, if something were to happen when signing up to a regulated Algorand broker - you would have a better chance of coming out unscathed. One reason for this is that most licensed platforms offer an in-house crypto wallet which usually boasts added security surrounding your private keys (password).
- However, on unregulated exchanges, you may need to transfer your digital assets to a third-party crypto wallet. This transfer alone can come with security breaches - so if you were to misplace your private key, then your funds could quickly become untraceable.
- Lastly, due to KYC (Know Your Customer) rules, you will be asked to set up a trading account that is verified by proof of government-issued ID when signing up to a regulated broker. On unregulated exchanges, no ID is required - meaning anyone and everyone can sign up and start trading ALGO.
We hope that this segment has given you some clarity on both regulated and unregulated Algorand exchanges. Regardless of which one you do decide to go for, keeping your hard-earned ALGO earnings should always be the top priority!
When researching how to buy Algorand, it is essential to make sure that a broker supports your preferred payment method. The last thing you want is to sign up to a broker, find a great trading opportunity, then you are unable to fund your account.
You may find that this is the case with third-party exchanges. Due to their lack of regulations, payments are only accepted in the form of other cryptocurrency tokens.
The good thing is that now in 2021, you can use various forms of payment methods when buying ALGO. For example, you could opt for the more common debit or credit card. Or, you could keep everything digital and use an e-wallet such as Paypal, Apple Pay, or Skrill.
If you wanted to fund your account with an old-school method like bank transfer, this is also feasible. Just remember that this can take a little bit longer to arrive. No matter how you plan to buy Algorand, you can find a broker out there that suits your needs.
Fees and Commissions
Like any financial corporation, the business must make a profit in order to stay afloat. It is no different with cryptocurrency brokers. However, the brokerage industries make a profit by charging users a combination of fees and commissions.
For example, this could be a commission per trade or a fee when using a specific payment method. What we can say is that the costs and commissions that brokers charge can differ from one platform to the next.
Charges can vary depending on region, payment method, and how much you are looking to purchase. To give you an example, on the platform Coinbase, if you were to trade Algorand while based in Europe, you would face a 1.49% fee per position you executed.
To give you a better understanding of how this may influence your gains - have a look at our ALGO trading example below:
- You create a $525 Algorand buy order.
- Coinbase executes the 1.49% commission - you pay the charge at a rate of $7.82.
- You want to sell your ALGO coins as the value has reached $1,000.
- You must now pay $14.90 ($1,000 x 1.49%) to sell your ALGO coins.
- Collectively, you have paid $ 22.72 in fees.
Some may look at this and say, well, if you are earning big profits, then 1.49% doesn't seem too bad. But, profits are not always guaranteed, and these fees can quickly start to add up.
In reality, fees and commissions are entirely subjective to what your future investment plans may be. Keeping this in mind, it is always best to research and note down any fees you may face when buying Algorand. These may include the spread, withdrawal, or conversion fees.
Other Important Factors
At this point, we have covered the more significant determinants you need to focus on when researching how to buy Algorand. Nevertheless, to have an overall tremendous experience on a broker's site, there are some other key features you may want to consider.
Here are some we believe make a huge impact when buying ALGO coins online.
- User-Friendliness: Being able to navigate and smoothly operate on a brokerage site is crucial. There is nothing worse than using an online site and having no idea what you need to do to take the next step. The best platforms will contain clear and concise directions, ensuring both new and experienced users know what they are stepping into. An easy-to-use interface that shows thought has gone into the design, is a sure winner to keep investors coming back. The same goes when you want to buy Algorand.
- Minimum Investment: As we touched on earlier, brokers will charge fees and commissions on their sites. One we didn't cover is the minimum investment amount. It is relatively straightforward; however, all brokers are different. Some may start at a minimum of $5, and others will only accept $250 and upwards. For that reason, it is best to have a quick check and see if it fits into your investment budget.
- Storage: Before you sign up to a broker and start buying Algorand, you will need to find a safe and convenient way to store your ALGO coins. There are a lot of options out there which can make it tricky knowing which one to choose. Ideally, you want to find a regulated broker that offers a crypto wallet within the platform, or as an app you can download. You need to make sure you research what cryptocurrencies the wallet supports and the costs involved. In most cases, if you sign up to the broker, they will allow you to store your tokens at no extra cost.
Step 2: Come up With an Algorand Investment Plan
You may have noticed throughout our How to Buy Algorand Guide; we have mentioned checking to see if it fits your investment plan. Many traders will orchestrate and keep on top of an investment plan throughout their trading lifetime.
By doing this, they can really focus on staying consistent by leaving their emotions at the door. A sound investment plan will eliminate the need for any pressured decisions to be made.
Especially in the highly volatile cryptocurrency markets where the value of a digital token can rise and fall within a matter of seconds!
To help you put together your own personal investment plan - we have included some Algorand strategies that may help you make some steady profits.
Long-Term or Short-Term
The first thing you need to decide on is if you are looking to buy ALGO for the long or short term. By opting for the short-term way of buying and selling - you aim to profit from the endless price shifts that Algorand will face on a daily basis.
You just have to look at the historical data behind most digital coins to see that there has been a significant price fluctuation at one point or another. To get the best out of the short-term strategy, you will place one or more Algorand orders with the plan to cash out within minutes, hours, or days.
These short bursts are why most people start trading cryptocurrency. If you speculate the market correctly, you can make some major profits. But, one episode of bad timing and you can face a massive loss.
If you are looking to build a long-term trading portfolio and make gains without the stress of everyday fluctuations - you may want to go for the buy and hold method. It is as easy as the name suggests; you buy Algorand and then sell it for a profit in months or years to come.
Some investors have held onto their digital assets for many years; it takes a lot of discipline but can come with great rewards in the long run.
Target Algorand Price
When you research how to buy Algorand, you may come across people using a target price in their investment plan. The target price strategy allows you to maintain a clear-thought process while trading Algorand.
Even more, by deciding on a target price before you place a trade means you are not acting out of emotion. Which as we touched on earlier, this is vital to trading any financial asset.
Let us show what we mean by a target price:
- You place an order on Algorand at a stake of $200.
- You check your goals and decide you want to make a 30% profit before you cash out.
- To hit your target price, the value of Algorand has to reach $260
- If you wanted to start small at a target of 10%, then you would be looking for $220.
As you can see, it all depends on what you are comfortable with and what you can afford. Speculating on any market can be challenging at first. But bear in mind Algorand has risen from $0.28 in December last year to a high of $0.90 in July 2021.
Meaning you can make a profit, whether it be short or long term. But, we do suggest doing careful research and using guides like our how to buy Algorand, one - to help steer you in the right direction.
Don't Miss: Algorand Price Prediction
Consider Regular Investments
Some think that cryptocurrency trading can be like a night in Vegas where you throw large amounts of money at it and hope for the best. We are happy to say this is not the case. In fact, regularly investing small amounts is a strategy that is popular with traders of all levels.
For example, you could establish a system that allows you to invest in Algorand on a weekly or monthly basis. By making modest investments, you can turn a profit and build your trading portfolio without risking it all in one go.
If you take up our suggestion, then you will need to find a broker that offers a lower minimum investment. If you are paying substantial fees on each trade, then it can quickly outweigh the whole point of this strategy.
Step 3: Open an Algorand Broker Account
If you are following along with the How to Buy Algorand guide - you should have a good idea of what to look for in a broker. If you have one in mind, then allow us to show you the next steps you need to take. The process is very similar to many online sites nowadays.
- First, you will need to head to the website and sign up.
- If you are using a regulated broker as we suggested - then you will need to enter a few personal details.
- These details will include your name, address, phone number, and email address.
- Most regulated brokers will also follow the KYC ( Know Your Customer) legal requirements.
Meaning they will need you to submit a photographic ID or, in some cases, proof of address. Passports and driving licenses are the most commonly used, but each broker should have a full list of what they accept. When you have entered all your details, and the ID is verified, then you are ready to start purchasing Algorand!
Step 4: Deposit Some Funds
When it comes to depositing your funds, it is pretty straightforward. As we mentioned earlier, there are various payment methods you can use. All you need to do is select your preferred form and enter how much you wish to deposit.
We find the most immediate ways are debit/credit card or an e-wallet. Although, if this is not your style, not to worry, many brokers will accept a bank or wire transfer. It just may take a little bit longer.
The one thing you will need to consider is the minimum amount you need to invest in order to get started. Each broker is different and can start from $0 up into the hundreds. So, it is best to check it aligns with your investment plan and budget before you take the time to sign up.
Step 5: Set up an Algorand Order
At this point, you would have your fully funded account ready to go. The next thing is to create an order, so your broker knows where you stand. If you have traded crypto before, then you may be aware of the different types of orders.
If not, we have made sure to include a few portions dedicated to orders below - as they are the main component of creating your Algorand purchase.
A buy order is an instruction to your broker to purchase your desired amount of Algorand. You will find yourself using buy orders frequently, as essentially, this is how you are entering the market. If you think your chosen crypto pair will increase, you will opt for a buy order.
You may also hear people referring to this as a long position. If your broker supports short selling, then you can speculate on the drop in Algorand’s value. For example, if you feel ALGO/USD will fall soon, you can create a sell order.
You would then use a buy order to repurchase your ALGO tokens at the new lower price. So as you can see, you can use buy orders in a manner of different ways.
Limit or Market Order
When you have created your buy order, you now have to decide whether you want to enter the market instantly or at a specific price. As we have covered multiple times in our How to Buy Algorand Guide, the crypto market is one of the most volatile.
To truly combat this and get the best results, limit and market orders come into play.
- Let us begin with market orders, as they tend to be offered more regularly on broker sites.
- Traders will use a market order if they want to execute a position instantly.
- One reason for this is if an unexpected opportunity arises and you do not want to miss it.
When you opt for a market order, you agree with your broker that you will enter the market at the current price of Algorand. For example, if the value of Algorand is $0.70 and this fits your investment plan perfectly.
You proceed to your broker and set up a market order. When you hit trade, your broker will instantly fill out your order at the current price. Market orders are certainly the more fast-paced option - which is why if you are a complete newbie, we may suggest starting with a limit order.
The limit order essentially puts all the power into your hands. Instead of jumping in at the next opportunity- you will instruct your broker on a specific price you feel suits your trade.
- The value of Algorand is currently $0.70 - but you are looking to buy in at $0.73.
- You create a limit order for your desired $0.73 price.
- If Algorand reaches your limit order price, your broker will execute the trade.
- If the price of Algorand does not arrive at the $0.73 target, it will remain pending until you manually cancel it.
In summary, a market order is the simpler of the two as there is no guesswork. However, limit orders allow you to control your trades and are probably best when starting your Algorand journey.
Now we can see that you must decide what orders you want to use before starting to trade Algorand. Additionally, you will need to budget how much you can afford to stake per trade.
As we said earlier, starting with smaller but more regular amounts is a sound way to build your portfolio. By doing this, you will get a feel for Algorand and begin to feel more comfortable.
Of course, the other option you have is to go for the buy and hold method. Regardless, it is best not to risk all your capital on one trade - as you can never know the outcome.
All that is left now is to confirm your information and receive your coins. Be sure to check all aspects, such as long/short position, market or limit order, and your stake.
Once all this is done, you will have successfully placed your first Algorand purchase. Or, if you are experienced, one of your many trades!
Step 6: Storing Your Algorand
We briefly glided over crypto wallets earlier on in our How to Buy Algorand Guide. Here is a better explanation to ensure you have a firm understanding of how they work. Just like our everyday cash, cryptocurrency coins are stored in digital accounts.
However, this account type is stored on a decentralized ledger and is known as a crypto wallet. If you decide to go for a third-party exchange, you will need to transfer your funds into a wallet for safety reasons.
More than likely, there will be no regulation here, so you are opening your capital up to various security breaches. You will also have complete trust over your private key, meaning it won't be an easy fix if you misplace it.
We suggest opting for a regulated broker that offers you a personal crypto wallet through its site. You will be able to keep everything under one roof, and more importantly, you will be better protected.
Step 7: Selling Your Algorand
So as you can see from our How to Buy Algorand Guide, the aim of the game is to time the market correctly and make some profits. You can do this in quick bursts or leave them in your crypto wallet and withdraw your funds at a later date.
No matter which way you plan to buy Algorand, you will want to do it as safely and conveniently as possible. When using unregulated exchanges, you will need to transfer your capital back and forth from your wallet.
And as you aren't under a regulatory umbrella - this isn't recommended. In most cases, a broker will allow you to swap your Algorand tokens over to fiat currency. It is effortless and is usually done within a matter of minutes. Due to KYC rules, the broker will transfer your earnings back to the original payment method.
Other Ways to Buy Algorand in 2021
As the cryptocurrency markets are growing each day, there are always new ways to buy your tokens. We have included some that you may come to use throughout your ALGO journey.
Buy Algorand Debit Card
The quickest and most popular way to buy anything and everything nowadays is a debit card. The same applies when purchasing Algorand. All you need to do is input how much you wish to ALGO buy, and your broker will act as your cashier and process the order.
When it comes to withdrawing your funds, you request your preferred amount, and the broker will transfer the money back to the same debit card. It's really that simple.
Buy Algorand Credit Card
If you tend to use a credit card for your cryptocurrency needs, this is doable on several brokerage sites. It is the same process as using a debit card, but there is a high chance you will be charged a cash advance fee.
Our team did some research while writing our How to Buy Algorand Guide and found that the average charge is 3% percent of the transaction. Although, it's best to double-check with your credit card provider.
Buy Algorand Paypal
Over the years, Paypal has evolved into a safe and popular way to do some online shopping. That is why many traders choose Paypal to make their cryptocurrency purchases.
You simply have to select Paypal as your method and enter the amount of Algorand you want. Not all brokers will offer Paypal, but they may have other e-wallets you can use.
Not many people are informed on what crypto ATMs are or how they operate - which is surprising to hear as there are now thousands of locations worldwide. You can find crypto ATMs on high streets and even in shopping malls.
A cryptocurrency ATM works in a slightly different way to a regular one. Instead of putting in a card and receiving money - you put in cash and purchase your crypto coins. You will then get a receipt detailing the transaction.
From there, you can organize a private crypto wallet transfer. As much as this sounds incredible, it is unlikely that crypto ATMs will offer Algorand at this time. This could be a hidden benefit for yourself, as the fees charged for this service can hit a huge 20% of your purchase amount.
How to Buy Algorand - The Verdict
In our How to Buy Algorand Guide, we have covered brokers, order types and everything in between. We hope you are now ready to take the leap and join the millions of cryptocurrency traders all over the globe.
If you are then all you need to do is follow our steps above and start purchasing your Algorand tokens today!
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Virtual currencies are highly volatile. Your capital is at risk.
Is it easy to buy Algorand?
Yes, there are several ways you can get your hands on Algorand. Simply choose a regulated broker and create your desired order.
Which is the safest method to buy Algorand?
The safest way to buy Algorand is to find a broker that is regulated by a licensing body like the FCA, ASIC or CySEC. If you are in the US, consider looking at FINRA registration.
Can I invest in Algorand for only $100?
Yes, you can invest $100 into Algorand. However, there are some conditions you will need to take into account - such as the minimum investment amount each broker requires.
Is it risky to buy Algorand?
Like anything that revolves around investing money, there can be risks involved. Take time to start small and research the Algorand markets.
What is the highest value that Algorand has ever reached?
ALGO reached an all time high of over $3 in June 2019.