How to Buy Decentraland - Beginner's Guide
Buying Decentraland in 2021: A Step-by-Step Guide
Are you interested in buying Decentraland, but not too sure where to begin? You’re not alone. The Decentraland digital coin is a hugely popular cryptocurrency to buy, the world over. But, for beginners, this can be quite intimidating.
Decentraland (MANA) has been part of the crypto scene for a while now, with its first 2D venture named The Stone Age released in 2015.
Over the years, Decentraland has evolved into a high-tech virtual world that gives its users control over their new digital real estate. And, with the recent surge of press and social media attention, people are speculating if now is the time to make that investment into Decentraland’s native DeFi token.
If you want to know exactly how to buy Decentraland - then this article is for you. We cover everything from what to look for in a crypto broker and how to buy Decentraland in a smooth and efficient manner.
- Quick Guide: How To Buy Decentraland in 5 Steps
- Step 1: Choose an Online Decentraland Broker or Exchange
- Step 2: Come up With an Investment Plan
- Step 3: Open a Decentraland Broker Account
- Step 4: Deposit Some Funds
- Step 5: Set Up a Trading Order
- Step 6: Storing Your Decentraland
- Step 7: Selling Your Decentraland
- Other Ways to Buy Decentraland
- How to Buy Decentraland - The Verdict
Quick Guide: How To Buy Decentraland in 5 Steps
To buy Decentraland, the first step is to open an account with a regulated exchange, deposit funds, select MANA from the trading platform list, and lastly check & confirm Decentraland tokens have added to your Wallet.
If you are looking for a more compact and quick explanation of how to buy Decentraland - we have you covered. We have included a 5 step breakdown of the essential steps to take when purchasing Decentraland online.
- You will need to find a regulated crypto broker that offers an array of different cryptocurrencies.
- Find out what the minimum deposit is on your chosen crypto platform, then you can proceed and fund your account.
- Choose (MANA) Decentraland from the list of cryptocurrency markets.
- Select how many MANA tokens you want to buy and enter the value amount into the necessary box.
- Once you have completed the steps above, all you need to do is confirm your order.
Step 1: Choose an Online Decentraland Broker or Exchange
As is apparent from the step-by-step guide above, the first thing you need to do is sign up for a crypto broker. If you do decide to follow our suggestion and opt for eToro, then you can buy MANA straight from the provider.
However, as easy as that sounds, we must mention that many of these exchanges are unregulated. With unregulated crypto exchanges comes a higher risk of security breaches, meaning you never know 100% if your capital is safe.
This is why many people choose eToro; not only is it regulated by the three financial bodies (FCA, ASIC, and CySEC), but it is also registered with FINRA and the SEC.
In summary, you can have the peace of mind that you are entering into a well-researched and security-laden exchange by opting for a licensed crypto broker.
If you are looking for more information on the importance of regulation, we have included a more detailed segment below - along with four other crucial factors to consider when choosing your crypto broker to buy Decentraland.
When thinking about how to buy Decentraland, there are many things you need to consider in finding the best broker for the job.
As such, below we list the most important factors to look out for when choosing a broker to purchase MANA tokens online.
As we mentioned previously, regulation should be one of the first things to look out for when researching your broker. Here are some other points that show us why this is critical.
- All regulatory bodies enforce a set of stringent and thorough rules that all regulated brokerage sites must comply with - meaning, you are more protected if there happened to be a financial mishap.
- Third-party exchanges may offer you leverage when buying or selling Decentraland, but we would always suggest not to get tied into this as you are amplifying your risk further.
- As some may know, unregulated exchanges have a higher record of being hacked. In some cases, you can withdraw your MANA into a private crypto wallet - however, if you were to lose your private key, otherwise known as your password, it makes it almost impossible to recover your funds.
- Lastly, when you open an account with a trusted and regulated broker such as eToro, you will need to verify your personal details. This verification ensures the safety of all members on the eToro site. However, this is not the case for third-party and unregulated exchanges.
As a result, anyone can join and begin buying and selling - which can become hazardous for your privacy and most importantly - MANA coins.
In the earlier days of the crypto market, when buying digital coins, payment methods were limited. For example, transactions such as wire transfers could take anywhere from 3 days to a few weeks.
It goes without saying that this timeframe was not ideal when it came to the highly volatile crypto arena. However, in today's market, you have a plethora of payment options - making it easier than ever to create a secure and instant deposit!
For instance, eToro accepts payments such as debit/credit cards and e-wallets such as Paypal, Neteller, and Skrill. These methods, plus the security it provides, make the platform perfect for newbies.
Fees and Commissions
In order to give you access to Decentraland and many other digital coins, brokerage sites will charge an assortment of fees and commissions. Every broker is different, and you may see a significant difference between each platform's prices.
In most cases, a broker will charge a variable commission on each crypto position you make. For example, Coinbase has a charge of 1.49% each time you buy or sell. This means that if you were to enter a trade at a value of $400, you would pay $5.96 in fees.
If you were to spend a more considerable amount, such as $2.500 - the cost would be $37.25. Now, these may seem minor to begin with, but fees and commissions can quickly start to build up.
We have included a step-by-step example below to show you exactly how these fees would play out.
- You allocate $700 on a Decentraland buy order.
- Coinbase takes their cut of 1.49% ($10.43).
- You decide to sell your MANA coins; they are now worth $1,450.
- You now have to pay the 1.49% again, making the commission $21.60.
- In total, you will have paid $32.03 in fees alone.
Like we mentioned, these fees can slowly start intruding on your profits. If you were to select eToro as your new brokerage site, you would have saved yourself a minimum of $32.03. The platform is also fee-free when depositing US Dollars - with a small 0.5% FX conversion fee if you were to use another currency.
This amount is a significant difference from Coinbase's 3.99% debit card deposit fee. So, for instance, if you were to purchase Decentraland for a price of $800 - you would need to pay an additional $11.92 on top of any other fees involved!
Other Important Factors
At this point, we have covered regulation, payment methods, fees, and commissions. Now we can discuss a few of the more minor but just as important factors you may need to look into when choosing your new crypto broker.
- User-friendliness: Just like any app or website in today's world, user-friendliness is one thing that will attract consumers and keep them coming back for more. This is the same for brokerage sites. Generating buy or sell orders for Decentraland should be an effortless process each and every time.
- Minimum Investment: Along with your fees and commissions, you will need to consider the minimum investment. The minimum investment is the amount that each broker requires as the starting block for each trade. For example, eToro's open position for Decentraland is $25, which is a giant leap from some brokers that will charge upwards of $200 per order!
- Storage: Just like your traditional everyday wallet, cryptocurrency storage works in the same roundabout way. You can use it to store, protect and even transfer your money. When you decide on a broker, it is best to see if they offer a built-in or independent crypto wallet—for example, the eToro mobile app. By doing this, you can store, transfer and withdraw your funds straight to the app instantly!
Step 2: Come up With an Investment Plan
The next step in our How to Buy Decentraland Guide is how to develop your personalized investment plan. Whether you have been trading for decades or just new to the game - the crypto market is known for being highly volatile and fast-paced.
Therefore, taking time out to plan and strategize your future market moves is always a good idea. To help you get an idea of what makes a good investment plan, we have included the top points we feel are crucial when it comes to buying MANA.
Long-Term or Short-Term
When it comes to trading, whether it be stocks or cryptocurrency, you generally have two options - short or long-term investing.
We will break down both in this next segment of our How to Buy Decentraland Guide - giving you the best chance of choosing which one suits your needs best.
Let's start with short-term investing. The primary objective of most short-term crypto investors is to make a profit off the smaller and more consistent market bursts. With the prices of the cryptocurrency markets constantly shifting each second - this strategy can prove successful. However, the bigger the profits sometimes also means the more prominent the losses.
Long-term investing is pretty self-explanatory; you buy your digital coin, for example, Decentraland, with the idea of holding out until the time is right. This timeframe could be weeks, months, or even years. You may hear some traders refer to this strategy as ‘HODLing', meaning that you are sticking to your buy and hold method no matter the circumstances.
Target Decentraland Price
Another strategy that can help to create a well-rounded investment plan is a target Decentraland price. That is to say; you would come up with either a percentage or specific price amount that you would be keen to see MANA tokens hit.
For example, if you were to purchase Decentraland at the cost of $0.45 with the aim of making a 60% profit - then the price of your digital coin would have to hit $0.72. Likewise, if you wanted to go for a smaller target price such as 20%, you would like the value of Decentraland to reach $0.54.
When setting your target Decentraland price, it is best to look at the coin's historical price movements. For example, on January 1st, 2021, the value of MANA was $0.08. Fast forward to April 2021, and the price boomed to $1.63. Therefore, anything is possible in cryptocurrency trading.
Consider Regular Investments
When you are doing your research on how to buy Decentraland to make the best profits, there are several strategies you will come upon. However, one approach that has been tested worldwide is investing in a smaller but more consistent manner.
For example, you may want to set up a schedule that allows you to invest a smaller amount every week/month. By using this method, you are combatting the high volatility of the cryptocurrency market head-on! As a result, you can slowly but surely start to build up your portfolio while maintaining a healthy budget for yourself.
This approach is another reason why finding a broker that offers a reasonable minimum investment is vital. Again, take eToro as an example; you can purchase Decentraland at a minimum investment of $25 - meaning it will fit perfectly into a steady but robust budget plan!
Read More: Is It Worth Investing in Decentraland?
Step 3: Open a Decentraland Broker Account
When you have selected a crypto broker that meets all your needs - the next step is to head to the site and sign up. Much like any other website, you will need to provide a few personal details to ensure the safety of your and your fellow traders.
These details will include your full name, date of birth, address, and contact information (phone and email).
If you were to sign up to a regulated broker - which, as we have mentioned previously, is the best course of action, then you may be asked to provide photo identification. A passport, driving license, or a national identity card is usually accepted on most brokerage platforms.
In some cases, you will also need to provide proof of residence, such as a utility bill or bank statement dated within the last three months. As you can imagine, these processes can take up to a week to be finalized, and that is if everything goes off without any delays.
However, if you were to opt for eToro, then you would be provided with an automatic screening process - meaning you could be ready to trade Decentraland within a few minutes.
Step 4: Deposit Some Funds
Now you have set up your account; the next step would be to deposit funds. Assuming you have done all the necessary research we have suggested in our How to Buy Decentraland Guide - then your new crypto broker should accept your preferred payment method.
As we touched on before, there are many ways to deposit funds, the most common being debit or credit card. However, nowadays, you can also choose from many e-wallets - depending on whatever feels most comfortable for you.
As a reminder, we have included a small list of the payment methods that the award-winning platform eToro offers.
- Debit/credit card (Visa, Maestro, Mastercard.)
- Bank transfer
- Rapid transfer
One thing you will need to keep in mind is that some brokers will require a minimum deposit amount. This could be anything from $10 straight up into the thousands - so it is best to include this in your investment plan.
Step 5: Set Up a Trading Order
Now comes the more exciting part, buying your Decentraland coins! To get started, you will need to place an order with your crypto broker. Now in the world of cryptocurrency trading, there are a few different orders you could make.
To help you understand further, we have included a list and explanation of the most valuable ones to consider when making your purchases.
The most common way to gain access to your required market is to use a buy order. You may also hear some traders refer to this as opening a long position. An easy way to remember these orders is that a long position is a buy order, and a short is a sell order.
For example, if you feel the price of Decentraland will rise in value, you would place a buy order. On the other hand, if you think the price is going to fall, you would place a sell order.
However, you would need to check if your broker supports short-selling - as it can be slightly more complicated and may have more steps involved.
Limit or Market Order
When it comes to entering the market, you ordinarily have two main options: limit and market orders. In theory, these both do the same thing; however, they are very different from one another.
Let's talk about the market order first. A market order informs your broker that you plan to enter the exchange at the next available price. For example, you wish to join at $0.50 - to make sure it is actioned instantly at that price, you create a market order.
Please bear in mind that you will need to account for any shifts that Decentraland may take; as we mentioned, these can happen at a mile a minute. For example, you may have opted for a $0.50 order, but it may have fluctuated to $0.51 in the time you took to place the trade. This will rarely have a significant effect on your position.
Now for the limit order, instead of jumping in at the next price, you can control what Decentraland value you feel suits your budget. To help you get a better grasp of this order, we have included a small example below:
- The current value of Decentraland is $0.51, but you plan to enter the market at $0.55.
- You create a limit order to ensure you can enter at this price.
- If MANA reaches your desired price - your chosen broker will execute the limit order.
- The order will remain outstanding until the price you entered has been reached - or you can cancel it manually through your broker.
Overall, the market order does appear to be the easiest of the two -which is why you may see brokers offering them on a more frequent basis. However, the limit order allows you to specify a price and enter the market with your investment plan in mind.
At this point, you would have your buy or sell position lined up and ready to go. The last thing you need to do before hitting that confirm button is to decide how much you wish to stake on your trade.
Previously in our How to Buy Decentraland Guide - we suggested starting slow if you are a beginner. Some newbies can jump right in and see their capital quickly begin to spiral.
By using a steadier method, you can grow your crypto portfolio in a healthy and risk-averse manner. And remember, you can always consult with your chosen investment plan to help you keep within your budget.
Let us summarize after you have created your account, deposited your funds, chosen your order, and budgeted in your stake - it is time to confirm!
Make sure to double-check the information you have entered. After all that, you should now see the MANA coins displayed in your chosen crypto wallet - and you are on your way to creating your personalized investment portfolio!
Don't Miss: Decentraland (MANA) Price Predictions
Step 6: Storing Your Decentraland
When storing your Decentraland coins, it is much like choosing a safe and reliable everyday wallet - just this version is digital. If you were to opt for an exchange that does not provide a built-in crypto wallet, then it would be your responsibility to keep your virtual capital safe.
This means downloading a third-party crypto wallet to your preferred device and safekeeping your private key. Because many of these wallets and exchanges are not regulated, there is a much higher chance of security breaches.
However, if you were to sign up with eToro - you can purchase Decentraland without worrying about the safety of your finances.
eToro holds such a high standard of security and regulation; it is easy to see why more than 20 million people feel secure buying, selling, and transferring their capital with the platform!
Step 7: Selling Your Decentraland
If you have read through our How to Buy Decentraland Guide in full, then what is now apparent is that the objective is to buy and then sell your coins to make a profit. Much like any investment, really.
In the same way that you need to store your coins safely, you also need to be careful when selling them. Third-party markets or unregulated brokers will require you to transfer your assets over to the exchange in question.
After this, you will need to make a currency swap from crypto to fiat money (US dollar, euro, British pound, etc). Not only will you need to pay a fee for this, but because the likes of the FCA/CySEC isn't protecting you - your capital could be at risk.
This is certainly not the case when you are cashing out with eToro; the whole process only takes a matter of minutes. All you need to do is log into your account, find your portfolio and select the sell option. Due to KYC rules, eToro will send your money back to the original payment method you used.
Other Ways to Buy Decentraland in 2021
Now we have covered the fundamentals of how to buy Decentraland, let us show you some other valuable methods you could find helpful.
Buy Decentraland Debit Card
When reviewing how to buy Decentraland, you will find that the easiest way is to use your debit card. And, unlike back in the day when bank transfers could take up to a week, you can now expect instant transactions.
All that is needed to buy Decentraland is to enter your card details as you usually would then declare how much you are looking to purchase.
As we mentioned previously, when you cash out your MANA coins, they can only be transferred back into the original debit card that you used. And, remember to take into consideration the minimum investment the platform will require at eToro; you can start as little as $25 per trade.
Buy Decentraland Credit Card
If using a credit card to purchase your Decentraland coins better suits your needs - then eToro has you covered. However, you may come across some additional external fees along the way. The common one is the 'cash advance fee' - which works similarly to the charge you receive when withdrawing cash using a credit card.
After some research, we found that the average fee works out at around 3% of the transaction price. Although, we do suggest touching base with your credit card provider and confirming this amount in more detail.
Buy Decentraland Paypal
Over the last few years, more and more people are using e-wallets like Paypal. The platform is a fast and convenient way to purchase goods straight from the comfort of your device. The even better fact is now you can use Paypal to buy Decentraland coins.
You may find some brokers are not up to date with this payment method and will not offer it. However, we are happy to say our firm favourite eToro certainly does - along with Neteller, Skrill, and many more options based on where you live.
Although there have been many incredible advancements in the cryptocurrency trading world - one that still amazes people is the Decentraland ATM. With over 4,000 machines now stationed all around the world, it's easier than ever to purchase your digital coins.
However, unlike our traditional ATM, where you enter your card and withdraw money - the crypto machines work very differently.
In most cases, you will need to enter a phone number; you will then be sent an OTP (one-time password.) After you input your OTP, you should be quickly verified and ready to go.
The next step is to enter your fiat money into the machine. After you have done this, you can view how many coins your deposit would give you. When it comes to then transferring your coins to a wallet, every ATM will vary.
In most cases, you will receive a printed receipt so that you can perform a private wallet transfer. On the other hand, some may offer to send it directly to your Decentraland wallet or even your email.
One of the most important factors when using a crypto ATM - is that you will more than likely be subject to a significant commission charge. In fact, many will charge upwards of 15% per transaction you make.
For this reason, it is safe to say if you plan to use one, then it is best to do your research.
How to Buy Decentraland 2021 - The Verdict
We hope our How to Buy Decentraland Guide has been helpful, and we were able to provide you with all the necessary information. However, if you are ready to get started straight away, here is a quick recap of the most valuable points to keep in mind when buying MANA tokens online!
Sign up for a regulated broker that offers low or 0% commission fees, such as eToro. By doing this, you can create an investment plan around modest and consistent orders.
Be sure to check that your broker provides your preferred payment method and the minimum investment on each trade/deposit. Set your budget and decide your stake amount.
Finally, and most importantly, opt for a broker that is regulated and safe, just like the eToro. In doing so, you never have to worry about the safety of your virtual capital.
eToro – The Best Platform to Buy Decentraland
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy Decentraland?
Decentraland is truly more accessible than ever, making it easy for anyone to make purchases. All you need to do is join a regulated brokerage site that offers MANA coins - then generate a buy order.
What is the safest way to buy Decentraland?
The safest and also the most convenient way to buy Decentraland is to choose a broker that is heavily regulated. A prime example of this is eToro, which is regulated by the FCA, ASIC, and CySEC - and also registered with FINRA and the SEC in the US.
Can I buy $100 of Decentraland?
Yes, you can buy $100 of Decentraland; however, unless it is a minimum requirement, we would always suggest starting with smaller amounts.
Can you lose money on Decentraland?
It goes without saying that you will undoubtedly experience a loss in the trading game at some point. However, as unfortunate as it is, it is part and parcel of buying and selling crypto. If you take your time to educate yourself on the market and start small, you will give yourself a higher chance of success.
What is the most that Decentraland has been worth?
The all-time high for Decentraland was in April 2021, when the digital asset hit $1.63.