Cryptocurrencies are all over the business news. They seem to be doing better than stocks this year. So now might be a good time to put some crypto-token in your account. How do you do it?
The good news is that almost every brokerage account today will allow you to buy Bitcoin (BTC-USD) or Ethereum (ETH-USD). Moreover, certain exchanges allow you to buy these cryptos as well.
The reason for this is that Bitcoin is now the largest cryptocurrency by market cap ($1.176 trillion) and Ethereum is the second-largest ($545 billion).
But what if you don't want to buy either of these two cryptos? After all, they might not have as much upside, given their popularity. As with stocks, cryptos can be efficiently priced.
Many are now talking about Solana (SOL-USD). What if I wanted to buy Solana - where and how can I buy it? Some brokerage accounts don't allow you to do this. You cannot buy Solana on either Robinhood or Webull.
So you are forced to set up an account at another exchange. The easiest, in my view, is Coinbase.
In fact, there are other exchanges where you can buy Solana. The best way to determine this is to go to the Coinmarketcap website. Type in SOL in the search box. That will take you to the Solana page.
Then scroll down to the middle of the page to where it says "Solana Markets." This is after the graph and the description section for Solana.
This shows you which exchanges allow you to buy Solana crypto and it lists the volume traded there. In fact, Binance is the top exchange with the highest trading volume for Solana. Therefore, setting up an account with Binance US might allow you to get a more efficient price for your SOL purchase.
So, if you don't know which exchange to buy a crypto, just go to the "Markets" section of the Coinmarketcap.com website for that crypto.
You will find that the more esoteric or unknown the crypto is, the more difficult it becomes to buy a particular crypto. For example, except for the most popular cryptos, most can only be bought by spending a stablecoin like USDT (Tether) or by swapping out another crypto for the target crypto.
I think I will write about that process another time since this can become very complicated.
There is always a way to buy a cryptocurrency that you have heard about, read about, or are investigating. The issue is how easy it will be to do that. The most popular cryptos are available in your brokerage account or a discount brokerage like Robinhood or Webull.
The next most popular cryptos are available on popular exchanges like Coinbase and Binance US. After that, you enter a much more complicated transaction process, involving swapping one crypto for another.
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This is not financial advice and you should not rely on my analysis to buy or sell any stock or crypto, as I am not undertaking to induce you to buy or sell securities. I am relying on the “publisher’s exclusion” in the Investment Advisers Act of 1940 to provide this information without any personalized or individualized investment advice.
This represents my analysis of Bitcoin, Ethereum, and Solana as well as Coinbase stock and it is not meant to provide you with specific advice in your own situation. I do not presently own any of these cryptos or stocks or related securities, but I may buy some of these in the coming weeks.