Why Do You Need a Cryptocurrency Account?
Cryptocurrencies are digital currencies you can use online to buy services or products. All these currencies have tokens that you can buy, mine, or acquire in some other way. The first popular cryptocurrency was Bitcoin, which started in 2009. Today there is a whole market for cryptocurrencies. People from all over the world invest in crypto and trade them to earn a lot of money. On top of that, new digital currencies are coming out each day, and people back them up early on to get tokens for free. If you’re looking to buy or trade crypto, you will need a cryptocurrency account. Today, we will talk about these accounts, what they are, how they work, and why they are necessary.
Crypto Exchanges or Brokers
The first step to trading cryptocurrency is to find a crypto exchange or a broker. Cryptocurrency exchanges are platforms where people can buy or sell crypto. They have low fees in most cases, but they use different types of trades, performance charts, and complex interfaces.
Some platforms have user-friendly interfaces and are more suitable for beginners. On the other hand, brokers altogether remove the complexity of trading crypto. They provide simple interfaces through which users can interact with exchanges. Generally, brokers have higher fees than exchanges. Some make money through fees, while others sell trading information to large funds or brokers. Even though brokers are more convenient, they have more potential limitations for your assets.
What is a Cryptocurrency Account?
Your cryptocurrency account is the account you make on an exchange, broker’s site, or wallet. You will have to create an account before you can exchange your money to buy crypto or sell crypto to exchange into fiat. In other words, it’s your profile as a trader that allows the platform to recognize, identify, and track your behavior if necessary. It’s pretty similar to using any e-commerce shopping site. Before you can buy any products, you will have to create an online account. Of course, some e-commerce stores let you do this without creating an account. However, when it comes to trading crypto, it’s probably not a good idea not to have your own account for these kinds of transactions.
6 Cryptocurrency Accounts Compared
| Cypto.com | Coinbase | BlockFi | SoFi | Gemini | |
|---|---|---|---|---|---|
| Annual fee | $0 | $0 | $0 | $0 | $0 |
| Min Deposit | $10 | $10 | $10 | $10 | $10 |
| Crypto Loans | n/a | n/a | Yes, 4.5% APR | Yes, 4.99% APR | n/a |
| Interest Account | Yes, 14.5% APY | Learn & get rewards | Yes, 9.5% APY | n/a | Yes, 8.05% APY |
| Trading Account | Yes, multi crypto currencies | Yes, 80+ cryptocurrencies | Yes, multi crypto | Yes, multi cryptocurrencies | Yes, 50+ crypto currencies |
| Crypto Card | Yes, 5 different options | Coinbase Visa Debit Card | BlockFi Bitcoin Rewards Visa | Sofi World Elite Mastercard | Gemini World Mastercard |
| Card Bonus | Not disclosed | Receive $5 in bitcoin | 3.5% during your first 3 months. | 2x points (4% cashback) | Receive $10 in bitcoin |
| Rewards | Up to 8% crypto back | Up to 4% crypto back | Unlimited 1.5% back in Bitcoin | Unlimited 2% cashback | Up to 3% crypto back |
| Try it Free | Try it | Try it | Try it | Try it | Try it |
Other Crypto offers and traders: Upgrade Bitcoin Visa, Ternio, Wirex
Creating Your Account for Trading Crypto
Once you’ve done your research and picked an exchange platform or a broker, you will have to register and create an account. Some platforms will ask you to verify your account, while some won’t. In some cases, verification is required only after you’ve surpassed a certain amount you want to buy. The verification usually requires some sort of official government document and sending an image. Once you’ve done this, you reduce the chances of being scammed and comply with different regulatory requirements.
If you don’t verify your account, you probably won’t be able to buy or sell crypto. Apart from sending a copy of your ID, passport, or driver’s license, platforms often require users to send their own images so that they can verify your appearance.
Bottom Line
Your cryptocurrency account is the link between the crypto market and your assets. It allows you to buy, sell, and trade assets safely without any issues. Without it, you won’t be able to do anything in exchange. Those exchanges that let you trade without a verified account are probably scams or unfair. Make sure to avoid them and use platforms with robust security and verification mechanisms in place.
