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How to buy DigiByte
A guide to buying, selling and trading DigiByte (DGB) in New Zealand.
How does DigiByte work?
DigiByte is one of the oldest blockchains on the market. Launched in 2014, it claims to be a Bitcoin or Litecoin competitor by offering more speed, decentralisation and security. Although it has been around for many years, it has never suffered a large-scale attack on its system. DigiByte operates the same way as Bitcoin, although with some differences. It is a proof-of-work blockchain but has a maximum supply of 21 billion tokens. It currently runs 280 transactions per second (unlike Bitcoin’s seven), has 15-second block times and uses five algorithms to mine. According to the team at DigiByte, using five algorithms to mine encourages decentralisation, which improves the security of the network. Another important difference is that DigiByte has created an interesting environment for DigiAssets, a smart contract style network that enables decentralised applications and programmable tokens.
Step 1. Create an account on a cryptocurrency exchange
DGB, DigiByte’s native token, is listed on a majority of popular exchanges. You can find it on big exchanges like Binance and Crypto.com, along with New Zealand-based exchanges like Easy Crypto and BitPrime. These exchanges vary in terms of fees, security, currencies supported and payment methods. It’s important to do your own research to find the right option for you. Below, you will find a list of platforms that we have vetted for DigiByte.
Once you have chosen a cryptocurrency exchange, go to the platform and create an account. Look at our list of exchanges below to pick the best one for you. Remember that to buy DGB with fiat currency, such as New Zealand dollars, you will be required to present some form of government-issued ID, so keep that document close by for when you need it.
Sign up for an account on the exchange of your choice by clicking on the “Go to site” button. This will take you to the exchange’s landing page, which will prompt you for your name and email address. Once these have been registered, you will need to perform a KYC (Know Your Customer) process. This is a legal requirement for the majority of exchanges and is when you present your government-issued ID.
KYC is usually quite a fast process, although it may take up to a few days. Once you are registered and verified, you can deposit funds into your account.
Step 2. Deposit funds
Depending on the cryptocurrency exchange you choose, you will need to deposit funds into your account, register a debit or credit card or transfer cryptocurrency to the platform.
Depositing funds. The cheapest way to buy DigiByte is to deposit NZD directly from your bank account into the exchange. There are usually no fees for this type of deposit and the same process can be done if you decide to sell your cryptocurrency.
Although this is the cheapest method, the trade-off is availability of funds. It usually takes a few days to clear, depending on your bank. However, once this process is finished, you can buy DGB or any other cryptocurrency available on the platform.
Using a debit or credit card: This is the fastest method of deposit, but it also comes with a number of trade-offs. It is usually the most expensive option, with some platforms charging up to 5% in deposit fees. Although its ease of use and instant purchase method are attractive, these costs can add up over time and some providers might not allow this option.
Using cryptocurrency. Every exchange will allow you to buy, sell or trade cryptocurrencies using crypto as a funding option. Fees and availability of funds will depend on the network you are using (exchanges usually won’t charge a fee for depositing with crypto). As such, a popular method for traders is to deposit a digital asset and use this to trade in and out of their token of choice. Some exchanges do not require KYC for those using only crypto, but that is up to the user to research.
It’s always a good idea to think about the various cryptocurrency platforms and weigh up which option will be the best for you. Each comes with its set of upsides and downsides and it’s a good idea to have a strategy beforehand. Remember that you can always change your deposit method later on if you decide to do so.
Step 3. Buy DigiByte
There are several ways to purchase DigiByte, depending on the exchange you are using. The most popular are instant buys and spot market.
Instant buy. The most common method for instant purchases is through your debit or credit card. In this case, the exchange sets a price, usually slightly above market, and sells you DigiByte directly. This is perhaps the easiest way to buy DGB, but also the most expensive. Keep that in mind if you are looking to make more than one purchase.
Spot market. This is the most popular method for buying and selling cryptocurrencies. Essentially, users come together in the market and set their own prices for swapping assets like DigiByte. Sellers set a price and buyers choose. Buyers can also set their own orders in the hope of the price lowering and them being able to buy cheaper. This method is known as trading and is wildly popular among cryptocurrency users.
Both these options come with their own features and issues. As we stated above, think ahead and create a strategy that will lower your costs and make your purchases as easy as possible.
Step 4. Withdraw to a wallet
Once you have purchased your DigiByte, it is good security practice to withdraw it off the exchange and into your personal wallet. Use this in-depth guide to understand what cryptocurrency wallets are and how to use them. Remember to make sure that your wallet of choice supports DigiByte when downloading it.
What to consider when buying DigiByte
Although DigiByte offers a very promising blockchain solution, it has failed to create real-world traction. Since 2014, the network has offered an interesting technological structure, with enhanced security and decentralisation techniques. However, the trend does not seem to be going DigiByte’s way. Protocols that claim to be “the next Bitcoin” usually fail spectacularly, and although DigiByte is still reasonably traded and has a strong community behind the project, it has not reached the adoption necessary to be considered a successful blockchain. As always, do your own research, but the market doesn’t seem to have high hopes for DigiByte.
Where to buy DigiByte in New Zealand
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