How to Buy Internet Computer
A Beginner’s Guide to Buying Internet Computer ICP
In our extensive How to Buy Internet Computer Guide, we walk you through the process of getting your hands on this popular digital coin.
Internet Computer is an innovative public network that aims to provide a space to build smart contracts at exceptional speed, scale, and a fraction of the current computing prices.
Over the second week of May 2021, the protocol released its native Internet Computer (ICP) token on multiple global exchanges - including Coinbase, Binance, OKEx, Huobi, and others. Soon after its launch, ICP has raised significant interest from the crypto world.
Our How to Buy Internet Computer Guide will tell you all you need to know before purchasing this digital coin. We will also walk you through the step-by-step process of buying ICP from a trusted and regulated online broker.
- QUICK GUIDE: HOW TO BUY INTERNET COMPUTER
- Step 1: Choose an Internet Computer Exchange
- Step 2: Come up With an Internet Computer Investment Plan
- Step 3: Open an Internet Computer Broker Account
- Step 4: Deposit Some Funds
- Step 5: Set up an Internet Computer Order
- Step 6: Storing Your Internet Computer Coins
- Step 7: Selling Your Internet Computer Coins
- Other Ways to Buy Internet Computer in 2021
- How to Buy Internet Computer 2021 - The Verdict
QUICK GUIDE: HOW TO BUY INTERNET COMPUTER
If you are only looking to for simple instructions on how to buy Internet Computer - we have created a quick walkthrough for you here:
Step 1: Open an account with a regulated exchange that offers ICP tokens.
Step 2: Add money to your account.
Step 3: Find ICP from the list of available digital tokens.
Step 4: Enter the amount of Internet Computer you wish to buy.
Step 5: Confirm all the information you entered.
Once you confirm the order, the ICP tokens you purchased will be added to your crypto portfolio on the respective platform.
So now, let us go through each of these steps in detail.
Step 1: Choose an Internet Computer Exchange
If you are considering how to buy Internet Computer, there are several important decisions you will have to make. One of them is to figure out which online crypto provider you will use.
Your chosen brokerage platform will be working on your behalf to execute your trades. Moreover, it will be holding your funds on the platform to facilitate your online investments and trading endeavours.
Given these factors, it is evident why you should be careful in selecting whom you trust with your hard-earned money.
If you choose an online broker regulated under various jurisdictions - you can be sure that your ICP purchase will be conducted in a safe and transparent manner.
On the other hand, if you opt for a cryptocurrency exchange, more often than not - you will be dealing with unregulated operators. This means that these platforms do not have to follow any set of guidelines while offering their financial services.
That said, regulation is only one factor when considering a crypto broker to buy Internet Computer tokens. Aside from this, you should also investigate the fees involved, supported payment methods, and overall convenience of using the platform.
In this section, we will discuss what considerations you should bear in mind while looking for an online crypto provider to buy Internet Computer tokens.
As we discussed above, the regulatory standing of your Internet Computer broker is of utmost importance. In plain terms, a regulated broker will always have its activities monitored by the watchful eyes of a financial regulatory body.
The primary goal of such regulatory authorities is to prevent any fraudulent activities and ensure the smooth running of the financial markets.
When an online broker is licensed by one of these regulatory bodies - it means that all its trading operations are in accordance with the guidelines stipulated by the respective authority. In addition, regulated brokers will also have to subject their records to regular audits.
If a regulated broker fails to adhere to these standards, it can lead to the revocation of its license.
To offer you some insight, a few of the well-respected regulatory bodies in the crypto space include - the in the UK, CySEC in Cyprus, and ASIC in Australia. There are also several other financial authorities in other jurisdictions that issue licenses for online crypto providers.
Choosing a licensed online broker to buy Internet Computer from will ensure that you are dealing with a reliable platform that can offer you a safe and regulated trading space.
Availability of different payment methods is another one of the key metrics that differentiates the best online brokers from the rest. As such, this is something you should consider when looking at how to buy Internet Computer.
Not so long ago, it was nearly impossible for you to buy cryptocurrencies like ICP with a direct fiat payment option. The only available method was to make a wire transfer - which would take days to complete.
But today, the majority of the renowned brokerage platforms allow you to take your pick from a variety of payment methods. You can choose an easy and hassle-free credit or debit card transaction. Or, make direct deposits and withdrawals through an e-wallet such as PayPal or Skrill.
As you can see, these instant transactions can save you both time and effort when buying Internet Computer from the comfort of your home.
Fees and Commissions
When figuring out how to buy Internet Computer, many beginners tend to overlook the importance of trading fees and commissions.
Every online broker charges you fees of some sort - be it in the form of commissions or withdrawal costs. Even what might appear as a small fee can add up over time - slowly eating away at your profits.
Therefore, before signing up with an online ICP broker, you should get a clear picture of what you are liable to pay.
One of the most common fees that you will come across is the commission - which usually varies depending on your stake.
Let us provide you a better explanation with an example:
- Take the case of Coinbase, one of the most prominent cryptocurrency exchanges that support Internet Computer.
- When you buy ICP tokens from Coinbase, you will be charged a 1.49% commission.
- For example, if you are buying $1,000 worth of Internet Computer coins, you will have to pay a commission of $14.90.
The critical part to remember is that - you will have to pay this commission once more when you sell your ICP coins.
- For instance, let us suppose that your investment in Internet Computer is worth $2,000 in six months.
- Pleased with your gains, you want to cash out your investment.
- When selling your Internet Computer coins, Coinbase will yet again charge you a 1.49% fee.
- This will cost you $29.80 (1.49% of $2,000).
Make note of the fact that this commission can vary depending on the size of your trade.
That said, you also have the option to avoid paying a commission on crypto trades entirely. All you have to do is find a regulated online broker that offers commission-free crypto trades.
Once you have looked into the commission, you should also check whether your chosen online broker charges you any fees to process deposits and withdrawals.
Depending on your payment method and fiat currency, you might have to pay a small transactional fee to cover any operational costs involved.
Other Important Factors
Regulation and fees are the prime factors that can help you make a decision regarding your go-to online broker. However, aside from that - there are a few other aspects that can influence your user experience on the platform when buying Internet Computer tokens.
- User-Friendliness: Whether you are a beginner or seasoned professional - a platform that is easy will be more convenient. You should make sure that the platform is intuitive and simple for you to access ICP tokens.
- Minimum Investment: It is also common for online brokerage platforms to set a minimum deposit and investment size for users. This means that you will have to stake a certain amount in order to be able to buy Internet Computer. As you can imagine, the lower the minimum investment - the better it is for investors on a budget.
- Storage: Although you can store your ICP coins in an external wallet, this is an additional step that can be quite cumbersome to manage. Instead, there are several online brokers that offer in-built wallet services. If your chosen broker is regulated, storing your digital assets on these platforms can offer further protection for your investments.
Step 2: Come up With an Internet Computer Investment Plan
There are numerous ways to make gains from your Internet Computer investment. However, given the volatile nature of digital assets - it is best that you have a specific strategy in mind before you take the plunge.
In simple terms, an investment plan is a strategy that you devise to guide you in all your investments. This will help you keep the emotions out of your important trading decisions.
If the price of Internet Computer suddenly goes against your prediction, your investment plan will define how you react and what action you take.
If you are a complete beginner in the cryptocurrency investment space, here are a few basic strategies that you can consider when buying Internet Computer.
Long-Term or Short-Term
When thinking of how to buy Internet Computer - your first goal is to understand whether you want to make returns in the long-term or in the short-term.
In a long-term investment plan, you will leave your Internet Computer portfolio to grow over months or even several years. This 'buy and hold' strategy works best for those who do not want to make decisions based on the short-term price swings of the digital coin.
Instead, you will wait for your ICP coins to appreciate in value over the course of time - to sell your assets at a profit further down the line.
On the other hand, if you want to chase short-term profits, you will be looking to capitalize on the everyday price movements of ICP tokens. For instance, with a popular short-term strategy 'day trading' - traders will place dozens of positions throughout the day, looking to end the day in profit.
As imaginable, you might wonder whether there will be enough price fluctuations to profit from. But cryptocurrencies can often move by single or even double digits as every second passes - making way for plenty of trading opportunities for short-term traders.
As such, if you are able to place the right trading orders at the correct time - you will be able to make attractive gains by following a short-term strategy.
However, taking such an approach will require you to have a solid understanding of the associated crypto markets.
Target Internet Computer Price
Apart from the duration of your investment, you can also come up with an investment plan based on how much profit you want to make. When thinking of how to buy Internet Computer - you can set a goal of what your target price is.
Let us explain this with the help of an example.
- Suppose that you buy Internet Computer at an entry price of $300.
- You have set a goal to make a 50% profit on your investment.
- This means that the price of one ICP coin should increase to $450.
- If your investment goal is to double your investment, then the price of ICP tokens should rise to $600 per coin, and so on.
You should remember that in the world of cryptocurrencies, such monumental profits are not unimaginable. If you are able to time the market accurately, you might be able to double or even triple your investment in Internet Computer coins.
Consider Regular Investments
Throughout this guide, we have mentioned the volatile nature of cryptocurrencies. Given this characteristic of digital assets - you might want to avoid investing all your funds into Internet Computer at once.
In this slow and steady approach, you will be buying Internet Computer coins using small amounts, but on a regular basis. This bankroll management strategy will help to keep your risk levels in check.
This way, you can build your ICP portfolio gradually while sticking to your financial plan.
As you can imagine, in order to pursue this strategy - it will be best to choose an online broker that has a low minimum investment requirement.
Step 3: Open an Internet Computer Broker Account
When you know which online broker you want to work with, you can head over to the respective website and sign up. This process is similar to creating an account on any online service.
However, as you are dealing with a brokerage provider - you will also have to include some basic personal data. For instance, most platforms will require you to provide your full name, residential address, tax number, and date of birth.
If your chosen online crypto provider is regulated, then it will also have to abide by KYC rules. This means that you will have to provide a valid photo identification document - such as a copy of your passport or driver's license.
You will also have to submit a recent utility bill in order to prove your residential status.
Step 4: Deposit Some Funds
The next step is to ensure that your online investment account is sufficiently funded to start buying Internet Computer coins.
As we had discussed earlier, you will have the option to choose between a debit/credit card or an e-wallet system such as PayPal.
Most platforms also support wire transfer - but it might take a few days for the funds to be available in your investment account.
Step 5: Set up an Internet Computer Order
If you have invested in any capacity before, you might already know to work with the concept of trading orders.
To offer a quick definition - trading orders are how you communicate to your online broker how you want to invest in a tradable asset - in this case, Internet Computer.
There are numerous trading orders that you can use depending on your strategy. Regardless, there are a few that can be applied to all scenarios.
In this section of our How to Buy Internet Computer Guide, we will take a look at common trading orders that are most relevant when purchasing this digital asset.
As evident, a buy order is placed when you want to buy ICP coins.
To elaborate, a buy order will tell your broker that you anticipate the value of the ICP coins to increase in the future.
When you want to cash out, you can place a sell order to close your ICP position.
On the other hand, some brokers also make it possible for you to benefit from the falling prices of crypto assets.
Meaning, you can open your ICP position with a sell order. When the price falls - you can buy them back using a buy order for a lower price and make a profit.
Limit or Market Order
We have established that the price of cryptocurrencies such as Internet Computer shifts every second. You have to be mindful of this, especially if you are following a short-term investment strategy.
When you place a buy order, there are two ways you can deal with this.
If you place a Market order, then this means that the ICP coins will be bought at the current market rate.
In other words, your broker will execute the order right away at the available price. That said, there could be some slippage when placing market orders.
For instance, you might be placing the order when ICP coins are priced at $300.50. But when the order was executed, you might notice that the price you got was $300.55. This small slippage is common in a volatile market.
If you want to buy ICP coins at a specific price - then you can place a Limit order.
Let us explain:
- Suppose that ICP tokens are currently valued at $325.
- You want to place a buy order on the coins, but only when the price reaches $327.
- Hence, you create a limit order at $327.
- If and when the price of ICP coins hits $327 - your limit order will be executed.
- More importantly, until it does - your order will remain pending till you cancel it manually.
To sum up, market orders are instantaneous. This might be beneficial if you are planning to enter the market urgently.
In comparison, limit order gives you better control over your position and is thus preferred by the majority of seasoned cryptocurrency traders.
In addition to specific trading orders, you will also need to mention how much you want to invest in Internet Computer coins.
As we discussed earlier, you might want to consider making multiple purchases of ICP coins at smaller amounts. This will help you balance the risks involved with your investment.
At this point, we have already discussed how you can create a brokerage account, which orders to place, and how to determine your stake amount.
Now, to be sure, check all the details you have entered - and confirm the order.
Your broker will now proceed to execute the respective trading orders you have placed. When the buy order is fulfilled, the ICP coins will be instantly added to your wallet.
Step 6: Storing Your Internet Computer Coins
Unlike fiat money, cryptocurrencies are to be stored in digital wallets. For its safekeeping, each crypto wallet will be accompanied by a private key and a password.
When you use a third-party crypto wallet, you are solely responsible for keeping the private key safe. Moreover, if you withdraw your ICP coins to an external wallet - you will have to transfer them again into the brokerage platform at the time of selling.
To avoid these inconveniences - you might want to choose a regulated online broker that offers integrated digital wallet services. This will also ensure that your crypto assets will be safe and secure under the heavy regulation of financial authorities.
Step 7: Selling Your Internet Computer Coins
As with any investment, you buy Internet Computer coins with the hope of increasing the value of your original stake. When this happens, you will dispose of your crypto assets and make a profit.
At the cost of repetition, buying or selling cryptocurrencies via an unregulated cryptocurrency exchange can invite unwarranted risk. In addition, you will have to settle for swapping your ICP coins to another digital coin in order to cash out.
Therefore - your best option is to sell your ICP coins through a regulated online broker. This will allow the process to be not only more convenient but also safer.
In return, the proceeds can be withdrawn back to the original payment method you used when you initially bought Internet Computer coins.
Other Ways to Buy Internet Computer in 2021
When thinking of how to buy Internet Computer coins, you are no longer limited to a single method.
Here are a few other ways that you can use to purchase ICP tokens.
Buy Internet Computer Debit Card
A few cryptocurrency platforms allow you to buy ICP coins directly by paying with a debit card. The process is quite similar to any other online payment you make.
The only difference is that the crypto assets you purchase will be added to a digital wallet. When you sell your ICP coins, the returns will be credited directly to the debit card you used to make the original purchase.
Buy Internet Computer Credit Card
If you would prefer to buy ICP coins with a credit card, this is also possible. However, you might want to check if your credit card issuer charges you any 'cash advance fees' before making the purchase. Often, credit card companies charge brokerage-based transactions with a fee that averages 3%.
Buy Internet Computer Paypal
Third-party payment systems such as PayPal, Neteller, and Skrill are becoming increasingly common for online purchases.
As such, today, there are a number of online brokers that support these payment methods in order to facilitate the purchase of ICP coins.
Internet Computer ATM
Cryptocurrency ATMs are another way for you to buy digital assets such as Internet Computer. Currently, there are nearly 20,000 crypto ATMs spread across the world.
In practice, you can insert your cash into these crypto ATMs, and the machine will tell you how much of your chosen digital assets you can get for your money.
However, since ICP is a relatively new digital coin, it might be quite difficult to find an ATM that supports this cryptocurrency. Moreover, crypto ATMs are known to be expensive - often charging commissions in excess of 10% per purchase.
How to Buy Internet Computer - The Verdict
According to its founders at DFININITY Foundation, ICP can increase the potential applications of the blockchain protocol and reduce its computing costs by a significant number.
In our How to Buy Internet Computer Guide, we have provided you with everything you need to know to capitalize on the rising popularity of this digital coin.
To summarize, you need to have a clear idea of what your investment objectives are and what strategy you wish to take.
Once you are sure of these aspects, make sure to choose a regulated online crypto broker that can give you access to Internet Computer at a competitive commission rate.
As the last step, take extra caution in choosing a secure digital wallet you want to store your ICP coins.
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When is the right time to buy Internet Computer coins?
ICP tokens hit the online crypto markets on May 10, 2021. It is too early to speculate where the price of the coin is headed. Therefore, we suggest that you do thorough research regarding the project before buying Internet Computer coins.
How can I safely buy Internet Computer coins online?
The most secure and convenient way to buy Internet Computer coins is through a regulated online broker.
Is there any risk involved in buying Internet Computer coins?
Investing in any cryptocurrency comes with its risks. All you can do is educate yourself about the market and have an investment plan to mitigate any potential losses.
Is it possible to get rich by investing in Internet Computer?
If you are able to correctly predict the future price of Internet Computer coin and place appropriate orders, you might be able to make attractive profits from your ICP investment. However, there is no guarantee that you will make money.