How to Buy Reddcoin (RDD) - A Beginner’s Guide

Choosing a broker is perhaps one of the most important things when it comes to buying Reddcoin. Due to the emergence of advanced technology, you can find hundreds of online brokers remotely within no time, but some of them are unreliable, incompetent, and security threats. Leading financial regulators understand this and have crafted policies that brokers should comply with to reduce the risks. Some brokerages also offer unreasonably expensive services.

In short, when choosing the right brokerage platform, you should put into consideration various essential factors such as the user interface, security, compliance with regulatory standards and cost of service.

Here’s how you can purchase RDD with a broker:

1. Register with the Broker

Once you’ve chosen the right broker, you should follow their stipulated registration process to join their platform. This process slightly differs from one broker to another. 

If you choose eToro, you’ll need to create a unique username and provide your email. Moreover, you’ll be asked to choose a strong password that contains between 6 and 20 characters, at least one capital letter, number or symbol. Other than filling the form, they allow users to sign up with Google and Facebook.

Other than your name, you’ll provide your date of birth, email address, and phone number. You’ll also create a unique username and choose a password between 8-15 characters, numbers, and letters. It should contain no special characters or symbols. To register with the broker, proceed to fill a short account information form.

2. Verify Your Identity (KYC Process) 

As already indicated, reputable brokers comply with regulatory requirements. This means they will require you to undergo the standard KYC (Know Your Customer) process. KYC helps brokers to have an accurate knowledge of the identity of their customers. 

So, if you are registering today, you should have your identification documents like ID and passport ready. The brokerage might also require you to provide utility bills that prove your residence, so it’s a good idea to prepare them in advance.

This advanced verification process seems tedious to some people. However, it would be best to consider that it enhances security, which is beneficial for the brokers and the users.

Please note that the prevalence of insecurity incidences in the cryptocurrency industry has hindered the mass adoption of digital assets. The AML and KYC regulations will mitigate the risk and ensure the coin’s mass adoption.

3. Deposit Funds with your Preferred Payment Method

Now you can choose a secure payment method to deposit the required funds and purchase RDD. It would help if you considered the level of security that they offer. If many users are worried about the safety of their funds, you should consider a red flag. Other important considerations should be:

• Cost
• Speed
• Availability

Availability and security should be your priority considerations. The rest can feature in your list in any order, depending on your needs. If you put a high premium on safety, cost, and convenience, you can consider PayPal. If you are concerned about speed, you can use a credit card. This alternative might cost you a little more, but you won’t have to waste a minute.

You can mitigate some security issues by taking the appropriate action. For example, you can install efficient antivirus software on your computer.

Once you are done, check whether your account has been funded. You will likely receive an email confirming the deposit. The funds should also be available in your account balance within a short time. If it’s been funded, proceed to the next step.

4 Open a Position to Long/Short Reddcoin

At this point, you should be clear whether you want to open a long or short trading position. If you believe that the value of RDD will continue to increase and intend to take advantage of this, enter a long position, also known as the bull position.

On the other hand, if you forecast the possibility of the coin losing value, you should enter a short position or bear.

With the above information, you can choose the best trading strategy with ease. Of course, you must stick to the best online broker like Plus500, eToro, and Forex.com. Besides, it would be best to manage your risks by making the best use of features such as market order/limit order, stop loss/take profit, and trailing stop loss. These built-in features are designed to protect you from loss. 

However, you need to rely on your knowledge of the market to set them. At times, you can take over from the automated processes to prevent your money.

5. Close Your Position

You should know how and when to close your trading position. As indicated above, most RDD trading platforms come with built-in settings like stop loss or take profit that you can rely on to boost the safety of your funds. They are automated features that can act without your direct intervention.

You rely on your expertise and experience to manage the settings. You may decide to close your trading position manually much earlier than anticipated due to the changing market conditions in certain instances. You can also decide when you have realised your financial goal and are happy with your earnings.

How to Buy Reddcoin with an Exchange

Like in the above case, your investment success largely hinges on your choice of crypto exchange. As we mentioned, in brief, a little earlier, investors who believe in Reddcoin and are looking forward to its increase in value after a year or more typically opt for this method.

However, to be successful, you should choose one that supports RDD, is designed for your trading needs, and offers competitive rates.  It would be best if you did not make your decision based on the cost alone. Some exchanges may charge you a little more for the quality of customer service or an added security layer. So, focus on whether you are getting value for money.

You should also ensure your exchange is registered and operates legally. The best ones are also regulatory compliant. If your exchange is cheap but lacks regulatory oversight, you may be exposed to severe security threats.

1. Set up a Reddcoin Wallet

To get Reddcoin, you need a digital wallet. So, choose one that best suits your trading strategy. Remember that you can do this in a few minutes. Keep reading for the main types of RDD wallets out there that you can use.

Exchange/Online wallets: You can use these wallets to buy small amounts of Reddcoin. They are also convenient when trading actively and want to have some coins readily available on your exchange’s wallet.

If you choose the right exchange, you might find that these wallets are highly convenient and suitable for storing your coins. However, they are perhaps the least secure. Hacks often target them and can take advantage of a few security breaches to steal your funds. That’s why we advise that you store small amounts of your coins in these wallets. If you do this and choose an exchange that has enhanced security measures, you’ll be able to minimise the threat.

Desktop and Mobile wallets:  As the name suggests, these are digital wallets that run on smartphones and desktops. They come in the form of apps. Like exchange/online wallets, they store your funds in an online environment, which might expose them to security threats. However, they give you access to private keys that you can use to manage your funds without the direct involvement of a second or third party.

Cold wallets:  These wallets are commonly referred to as hardware wallets and are the safest. Besides giving you access to a private key, they keep your resources in an online environment, meaning they effectively limit the chance of hacks accessing your digital currency. Some of these wallets feature advanced security features such as CC EAL5-certification level. However, you have to spend some money to purchase your preferred cold wallet to enjoy the enhanced security.

2. Choose and Join an Exchange that sells Reddcoin

Now that you have chosen and acquired the most reliable wallet that meets your trading needs, you should go ahead and join an exchange that offers RDD. You may find a few exchanges that don’t do this. The leading exchanges like Bittrex, BitMart, Poloniex, and Nova Exchange offer this coin.

Remember that these exchanges are unique, so some of them may not serve your needs as you require. Before selecting any of the wallets, ensure you counter-check their claims. You can also test whether their features are designed to give RDD traders the best experience. As a minimum, ensure your chosen exchange follows KYC standards and is regulated by accredited financial institutions.

3. Choose Your Payment Method to Buy Reddcoin

It’s now the right time to choose the best method to pay for Reddcoin. When doing this, you should factor in the time the payment method typically takes to process similar types of transactions. You should also consider how convenient the process is and the cost.’

As already mentioned, you can consider direct payments from your credit card or debit card. This is often one of the fastest options. However, you can reap the benefits at a little extra cost. In rare cases, your bank may reach out to you to determine whether you have intentionally initiated the transaction.

Another viable option is to add your bank account to your crypto exchange account. When you do this, you grant the exchange permission to allow seamless deposit and withdrawal of funds from the account. It can save you from the hard work of providing the payment method whenever you want to make a transaction. Better still, it gives you adequate access to fiat currency whenever you are in need. However, a few exchanges don’t support this method.

4. Place an Order to Buy RDD

To place an order, you should consider whether you can buy RDD directly through the exchange. Some exchanges require users to buy other cryptocurrencies like Bitcoin first to get Reddcoin. If you encounter this for any reason, buy the trading pair and then proceed to purchase RDD.

If you choose Bittrex, start by choosing your fiat currency and enter that amount you want to spend. They accept USD and AUD. You can also use Bitcoins and Ethereum. An automated calculation will determine the amount of RDD that you should receive based on the prevailing market price. If you agree with the rate, submit your request. After that, you’ll receive your coins almost instantly in your Reddcoin wallet.

5. Safely Storing your Reddcoin in a Wallet

Safely storing your RDD involves withdrawing the digital currency to your private wallet. This is an optional step. However, we highly recommend it if you have a long-term investment strategy. Remember, you’ll incur withdrawal costs, but that might be worth it. If you are a short-term trader with a few RDD coins, it might not make economic sense to transfer them to your private wallet due to the withdrawal costs.

Should you Buy or Trade Reddcoin?

You have the option to decide whether you want to buy or trade RDD through a brokerage or exchange.

Buying Reddcoin in exchanges involves meeting a group of sellers and choosing the best offers. Working with a professional broker gives exceptional trading opportunities. However, in this case, you don’t have the option of accessing different sellers. You deal directly with the brokerage.

What’s the Difference Between a Reddcoin Exchange and a Broker?

It’s important to note that exchanges and brokers are different in many ways. Exchanges provide a platform where you can trade Bitcoin and altcoins with ease. This is the reason experienced traders who intend to acquire different assets often prefer it.

Crypto brokers or sellers typically enter into CFDs with buyers. These agreements indicate that the buyer must pay the seller the difference between the future and current value of the asset. This allows the two parties to profit from the price movements.

Since buyers need to enter into these contracts with established entities, it makes sense to work with professional brokers who enjoy the required legal and financial backing.

Reddcoin: Long Vs Short Term Investment

We’ve seen that long and short-term investments are two different strategies you can opt for depending on your investing needs. To invest in RDD for a long period, you must set apart some resources for this purpose. Sometimes, it can take years for the investor to achieve the goal, which requires a high degree of preparedness.

A short-term investment involves locking your Reddcoins in an investment plan for between a few hours to one year. It’s ideal for beginners and individuals who may not have the ability to foretell future price trends. People who have limited resources or want to take advantage of short-time swings in RDD’s price can also take advantage of it.

3 Tips to Buy Reddcoin

Here are the three most important tips for buying RDD:

1. Choose the Right Time and Do Your Own Research on Reddcoin

Don’t rely on the information you find on one or a few platforms as the absolute truth. Have a look at the technical outlook for trends and review independent sources and customer reviews before making your decision. Ensure you choose the time to invest based on your objective research and understanding of the cryptocurrency market.

2. Compare Costs to Buy Reddcoin

Since different platforms charge varying prices, you should window shop. This opens for you the door to find and accept the most competitive deals.

3. Safety and Security when Buying Reddcoin

You should not ignore regulation, security protocols, and overall safety. Consider adding another layer of protection to get the desired level of protection. Without this, you might lose your hard-earned money to criminals.

What is the Best Payment Method for Buying Reddcoin

• Buy Reddcoin with Cash: Look for a Reddcoin ATM if you want to use this option.
• Buy Reddcoin with Credit Card: Can be a little bit costly but offers you timely service.
• Buy Reddcoin with Bank Transfer: It saves time and costs much less than many options.
• Buy RDD with Bitcoin: Best choice for individuals who want to get Reddcoin using Bitcoin.
• Buy Reddcoin with Paypal: It’s fast, secure, and cost-effective but not available in some countries.

Other Ways to Buy Reddcoin

Exchanges and brokers give you the best opportunities to buy RDD. However, you can buy the coin from your friends or on peer-to-peer (P2P) platforms. RDD ATMs are other sources that are gaining prominence in the crypto market today.

You can also mint RDD with your phone or computer. Remember, this digital social currency was designed for major social media platforms like Facebook, Twitter, and Instagram and uses the proof of stake velocity (POSV) algorithm, which makes it easy to mint.

Now you have everything you need to buy and invest in RDD securely, quickly and affordably. 

Please choose one or more of our suggested trading platforms and follow the tips we’ve provided here. That could be all you need to begin your journey to realising your financial dream.