When it comes to crypto, there’s a lot to learn. And for many people, getting into crypto can be very expensive. So let’s break down some of the costs associated with getting into cryptocurrency.
The cost of getting into cryptocurrency can be divided into three main categories: the cost of buying crypto, the cost of storing crypto, and the cost of using crypto.
The cost of buying crypto can vary widely depending on your exchange and the type of currency you’re looking to purchase. For example, Bitcoin is currently worth around $11,000, while Ethereum is around $1,100. So if you’re looking to buy just one Bitcoin, it’ll cost you 11 times as much as one Ethereum.
That said, several exchanges allow you to purchase fractions of a coin, so you don’t have to spend thousands of dollars just to get started. Coinbase is one such exchange, and it offers several different options for buying cryptocurrency. So, Can getting crypto be very expensive? Read out now.
You can use a debit card or bank account to purchase Bitcoin, Ethereum, Litecoin, and other popular coins. Or, if you’re looking to buy less-known coins, you can use Coinbase’s GDAX exchange.
Several other exchanges are also available (Binance is another popular option), and each has fees and payment methods. So, research before deciding which exchange is suitable for you is essential.
The cost of storing cryptocurrency also varies depending on the type of currency you have. For example, Bitcoin and Ethereum both have their own dedicated wallets that can be used to store coins offline (i.e., not on an exchange).
These wallets typically allow you to hold multiple currencies, so if you’re planning on buying other coins in addition to Bitcoin or Ethereum, they can all be stored in the same place. There are also hardware wallets available that offer even more security by keeping your coins offline at all times. Ledger Nano S and Trezor are two popular hardware wallet options.
Finally, there is the cost of using cryptocurrency. If you want to purchase something with your coins, then typically, there will be a transaction fee involved. This fee goes to the miners who verify transactions on the blockchain (the decentralized ledger that records all cryptocurrency transactions).
Again, these fees vary depending on the type of currency you’re using. For example, at current prices, a transaction fee for Bitcoin would cost around $0.40, while a transaction fee for Ethereum would cost around $0.015. So if you’re planning on making a lot of small purchases with your crypto, Ethereum may be a better option than Bitcoin from a financial perspective.
Of course, these are just some of the costs associated with getting into cryptocurrency—there are also opportunity costs (i.e., the money you could have made if you had invested in something else) and the risk that the prices of coins could go down (crypto is still a very volatile market). But if you’re thinking about getting into crypto, understanding these costs is an important first step.”