How to Buy DigiByte (DGB) in 3 Simple Steps

5 Things to Consider if you Want to Buy DigiByte

Prospective investors interested in buying DigiByte need to consider a few things before they hit that “Buy” button and make their first purchase. We’ve outlined five considerations that can help you get the most out of cryptocurrency platforms.

1. Carefully choose your preferred secure payment method

Choosing your funding source is a crucial first step. Crypto platforms offer a variety of options to traders depending on their location. When you’re choosing a payment method, first make sure that it is available in your region. For instance, while PayPal is a good payment option for users in the US, it’s not available to users in Iran, Pakistan and several other countries.

2. Will you need to set up your own wallet?

Setting up a secure cryptocurrency wallet is the second crucial step every investor must take regardless of the digital asset you’re looking to buy. Crypto brokers and exchanges automatically create web wallets for users, but it’s generally a good idea to set up your own private wallet for offline or “cold” storage. Wallets that are hosted by third parties are not under your complete control, and they may be vulnerable to theft and hacks.

The only time you don’t need to set up a wallet is if you’re entering into a CFD (Contract for Difference) agreement with a brokerage firm. Traders don’t need to own any DGB tokens to trade crypto derivatives, so a wallet for storage isn’t necessary.

3. Comparing costs

All cryptocurrencies have some type of fee or cost for conducting transactions on the blockchain, so it’s something worth considering. One of DigiByte’s selling points is its low fees thanks to the multiple mining algorithms it uses to confirm transactions and add new blocks to the blockchain. The current fee is approximately 0.0001 DGB for every 100,000 DGB sent, which is less than a penny in fiat money.

4. Safety and security

DigiByte sells itself as a platform built on “uncrackable technology”. The project was forked from Bitcoin with various security enhancements to help keep it safe, secure, and decentralised. To prevent centralisation through mining, the developers implemented multi-algorithm mining in 2014 to accommodate different types of miners, including GPU/CPU miners and ASIC miners. DigiByte currently supports Scrypt, Skein, SHA-256, Qubit and Odocrypt mining algorithms.

The developers also pioneered DigiShield to prevent large mining pools from mining large numbers of DGB at very low difficulty. DigiShield adjusts the mining difficulty after each block.

The global DigiByte blockchain has a scalable secondary layer built on top called DigiAssets that enables the decentralised issuance of tokens, smart contracts and digital identity. DigiAssets can be used to securely and cryptographically represent anything in the real world.

DigiByte is by design quite secure. For added security, users should consider combining the features baked into the DigiByte blockchain with security features available on exchanges and broker platforms, such as two-factor authentication (2FA), and support for MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

5. Can you understand and navigate the platform?

Navigation is an often neglected consideration, but it’s just as important as setting up a private wallet or choosing secure funding sources. Crypto brokers and exchanges may seem visually similar, but they often run different types of software with varying degrees of difficulty. It’s a good idea to take the time to learn how to navigate your chosen platform before you commit to using it for buying DGB tokens.

What Fees are Involved in Buying DigiByte?

All cryptocurrency transactions have associated fees and costs that range from network fees to platform-specific processing fees. Some of these fees are discussed below.

Network fees: These are fees charged by the DigiByte blockchain. As mentioned earlier, the network charges approximately 0.0001 DGB for every 100,000 DGB sent. It’s a negligible expense.

Transaction fees: These are platform-specific fees for processing your request to buy or sell DigiByte. The fees are usually a small percentage of the transaction amount, but they can also be a fixed amount.

Withdrawal fees: Exchanges and brokers may charge a withdrawal fee when you want to cash out. Like transaction fees, these are usually a small percentage, but some platforms have a flat rate.

Deposit fees: Some platforms charge deposit fees, but this is not common for broker platforms. Many brokers offer free deposits to encourage traders to sign up.

Safely Storing Your DigiByte

Secure storage is crucial for protecting your DGB tokens from hacks and theft. DigiByte supports multiple software and hardware options.

Web Wallet: These are cloud-based wallets that are always online (i.e. hot storage). Exchanges and brokers automatically create web wallets for users to enable quick storage. They are convenient and easy to access, but less secure than other wallet options. Since these wallets are constantly online, they are always at risk of hacks and theft. If the server hosting the wallet goes offline or closes shop, you could end up losing all your DGB.

Mobile Wallet: These are storage apps that work on smartphones and tablets. Mobile wallets are safer than web wallets because they don’t rely on cloud storage, but they also have risks. You could potentially lose all your assets if your phone is stolen. Mobile wallets that support DigiByte include DigiByte Wallet, Coinomi, Exodus, Atomic Wallet, Guarda, ZelCore, Edge, Ownbit, Trust Wallet, Satoshi Wallet, Abra and PolisPay.

Desktop Wallet: These are storage programs designed for PCs and laptops. They are less convenient than cloud-based wallets, but much more secure. Desktop wallets offer advanced security features like private key encryption and 2FA, but they can still be affected by personal hacks and viruses. Good examples of desktop wallets for DigiByte include DigiByte Core, Coinomi, Exodus, Atomic Wallet, Guarda, Jaxx Liberty, ZelCore and Flare.

Hardware Wallet: These are significantly more secure than web, mobile, and desktop wallets because they are physical devices that offer cold storage (i.e. offline storage). Your wallet private key can only be accessed via a USB port or Bluetooth. Hardware wallets are recommended for the long-term storage of any cryptocurrency. Examples of hardware wallets that support DigiByte include Ledger Trezor, KeepKey, SafePal, Ellipal, Opolo, SecuX and D’CENT.

Wallet Combinations: Some of the above wallets can be interlinked for convenience and security. For instance, the Ledger hardware wallet has a desktop version called Ledger Live that lets users check their balance and make transfers between the two while maintaining security.

What Other Coins Can I Trade or Use to Buy DigiByte?

DigiByte is a popular altcoin with a high daily trading volume, so it’s possible to buy DGB with Bitcoin, Ethereum, Ripple and several other popular cryptocurrencies. Major exchanges offer DBG/BTC pairings, but all of these platforms have fees for crypto-to-crypto transfers. Shop around to find the best deal before you initiate a trade.

What’s the Smallest and Largest Amount of DigiByte I Can Buy?

The total supply of DigiByte is capped at 21 billion tokens, and more than half of that amount is already in circulation. That means it is quite possible to buy DGB without a limit if you have a high investment budget.

With such a high circulating supply, you can either buy small amounts of DigiByte or buy a whole DGB token. Some platforms have a DigiByte buy limit, so check the minimum amount and make sure it’s within your budget before you make an account. It may not be possible to buy less than one DGB token on some platforms.

Can I Buy DigiByte Anonymously with no ID? Is it Safe and Legal to Buy DigiByte?

Unless there are specific laws banning cryptocurrencies in your region, it is safe to buy DGB tokens. All you have to do is find a reputable platform to buy DigiByte safely.

But what if you want to buy DigiByte anonymously? That would require finding a person willing to sell their tokens to you. Reputable exchanges will comply with KYC and AML rules, so it isn’t possible to buy DGB with no verification on those platforms. You’ll have to cut out the middleman and find a direct seller if you want to buy DigiByte without ID.

Will Buying DigiByte Make Me Money?

It’s only natural for a prospective investor to wonder about the potential riches of an asset, but no one can answer those questions with certainty.

Crypto investing is an inherently risky pursuit. You can look at fundamental and technical analysis indicators such as who is buying DigiByte, upcoming announcements, future roadmap achievements, and historic price movements to try and determine what direction the market will take, but there are no guarantees. For more detailed predictions, read our DigiByte price prediction guide here.

How to Spend your DigiByte

As a popular altcoin, there’s no shortage of places where you can spend your tokens. Several online stores can let you buy gift cards or pay for goods and services using DigiByte. There are crypto gambling sites, art dealers, web hosts and electronics suppliers that accept DGB.

Numerous crypto merchant gateways support DGB payments. The DigiByte team has also released DigiByte-supported crypto debit cards that can be used to spend DGB tokens using PoS and ATM machines across the globe.

How to Sell your DigiByte

There are many platforms where you can sell your DGB tokens. You can trade your tokens for another cryptocurrency using exchange platforms. Exchanging your tokens for Bitcoin, Ethereum or another popular cryptocurrency and then converting that amount to fiat money is a fast way to cash out.

Another option is to sell your DigiByte through CFDs. Crypto trading is quite popular, and DigiByte is a valuable altcoin, so it shouldn’t be difficult to trade derivatives that are tethered to its market price. CFDs are generally settled in fiat currency.