How to Buy DigiByte - Where to Purchase DGB
DigiByte (DGB) is an altcoin and asset creation platform that was forked from Bitcoin in 2014. It features a public ledger and an “app store” for decentralised apps (dApps). The blockchain uses nodes to keep it secure and decentralised. It uses a Proof of Work system that supports five different types of cryptographic mining algorithms to prevent mining centralisation.
The explosive growth that DigitByte has experienced in recent years has made it an attractive commodity for crypto investors. This guide covers everything you need to know to buy DigiByte and how to trade it on various crypto platforms.
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Why Trade rather than Buy DigiByte for Cheap and Fast Returns?
You Don’t Need a Wallet
You trade on the price movement of the coin without having to buy and store it.
You Can Use Standard Payment Methods
All regulated brokers accept popular methods of payment such as credit/debit card and bank transfers.
Trades Are Fast and Withdrawals Are Easy
Trades are executed within seconds and withdrawals will reflect instantly in your account.
What is the Easiest Way and Best Way to Buy? Compare the Top DigiByte Brokers
Cryptocurrency broker platforms are the best places to buy DigiByte online. Thanks to its position among the top 100 cryptocurrencies by market capitalisation, many major brokers offer DGB. These websites are the easiest way to buy DigiByte.
The cryptocurrency boom has helped launch numerous crypto platforms, and many brokers have been in business for years now. They have reputations for providing users with quality service and advanced trading tools for determining the right time to buy DigiByte. The best website to buy DGB for you specifically will depend on your location and funding source.
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.
Ultimate Beginner’s Guide to Trading DigiByte
What is a DigiByte Broker?
Crypto brokers are online platforms that execute trades on behalf of investors and traders. They are intermediaries who offer financial services related to DigiByte and other cryptocurrencies. Traders can use brokers to obtain financial derivatives such as CFDs, options and futures. These derivatives enable traders to speculate on market trends without actually having to hold the cryptocurrency.
What is a DigiByte CFD?
CFD is short for Contract for Differences. It’s a financial instrument that’s tethered to the market value of a commodity. A person who holds a CFD can speculate on the direction the price of an asset will take without actually owning the asset. The contract is typically funded and settled using fiat money, but CFDs can also be traded with cryptocurrency as collateral.
For example, a DigiByte CFD is pegged to the market price of DGB. The holder of the CFD bets on whether DGB’s price will go up or down. They make a profit if their prediction is correct. CFDs can enable traders to make huge profits, especially if they use leverage. However, they can also amplify your losses if the market goes in the opposite direction.
What is the Benefit of DigiByte Regulation?
Regulation has numerous benefits for both investors and crypto platforms. A regulated broker complies with the law and will generally offer users better security for their assets and personal data in accordance with consumer protection laws. Investors also gain the legal right to hold a platform accountable if it breaks its terms of service.
What is the Best Payment Method for Buying DigiByte?
Crypto exchanges and brokers typically have multiple payment options available to users. Please note that some options may not be available to you due to regional restrictions. Below are some of the most common payment methods for buying DigiByte:
Buying DigiByte via Bank Transfer: Bank transfer is a common payment option on most crypto platforms. Traders love it because it has extremely low fees, which makes it ideal for bulk orders. Payments made via bank transfer also tend to have higher spending limits, but only if you verify your bank account information.
Buying DigiByte with Credit or Debit Cards: Credit or debit cards are another universally available payment option. Purchases using cards are fast and secure, but the fees can be quite high, especially for credit cards. Some card issuers also block transactions involving cryptocurrencies, so check with your bank before you use your card.
Buying DigiByte with PayPal: PayPal is a convenient option that’s offered by several reputable platforms. It’s a secure option because you can use PayPal to make transactions without giving out your banking information. The fees are also reasonable. The only issue with PayPal is that it’s not available in all regions.
Buying DigiByte with Crypto Transfer: Digibyte is a popular altcoin, so it’s easy to find trading pairs that include DGB on most major crypto exchanges. Crypto transfers are quick and secure. They can also be quite affordable depending on which cryptocurrency you use in a trading pair.
The Verification Process for Trading DigiByte
Reputable brokers and exchanges require new users to verify their identity before they can use the platform. It’s a necessary step to comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) rules set by financial regulators. Verification is usually part of the sign-up process. It involves providing a copy of a government-issued ID, such as a passport or driver’s license. You may also be asked to provide a utility bill or bank statement as proof of address.
DigiByte: Long vs Short Term Investment
Cryptocurrencies investments can broadly be categorised as short-term or long-term investments. Short-term investing involves buying DigiByte for cheap today and holding on to your tokens for hours, days or sometimes weeks before selling for a profit. This investment style is the basis of strategies like day trading, swing trading and scalping.
On the other hand, long-term investing involves holding on to your DGB tokens for months or even years until DigiByte’s value goes up significantly before cashing out. It’s a less risky and more passive approach to crypto investing that relies on fundamental and technical analysis indicators to determine the best time to exit.
Why Buy DigiByte rather than Trade?
Buying DigiByte to hold as an investment has many advantages over trading. When you buy DGB, you gain access to actual tokens that you can use as a currency of value. These tokens can pay for goods and services on platforms that accept DigiByte or on dApps built on the DigiByte platform.
Alternatively, when you buy DGB cheap today, you can hold on to your tokens as a long-term investment. You can sell your tokens after several months or years once the market price goes up. While there is no guarantee you’ll turn a profit, buying and “hodling” is generally a less risky investment approach than trading DGB as a short-term investment.
That being said, buying any cryptocurrency requires some research, and there is a learning curve. Even if you’re aiming for the fastest DGB purchase, you still have to figure out how to set up a secure wallet for storage.
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.
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.
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Frequently Asked Questions
DigiByte was never funded through an ICO. No single person or company is handling the blockchain. The entire project is decentralised and managed by volunteers.
Transactions made with DigiByte are confirmed in approximately 15 seconds. It is more than 40 times faster than Bitcoin and 10 times faster than Litecoin.
DigiByte is capped at 21 billion coins, which is 1000 times more than Bitcoin’s total supply. The developers wanted it to be a viable currency option, so a high total supply makes sense.
To prevent centralised mining, DigiByte supports multiple mining algorithms. These include Scrypt, Skein, SHA-256, Qubit, and Odocrypt mining algorithms.
The DigiByte Core Wallet is the official wallet for DGB. It’s available for Windows, Linux and macOS
DigiByte is a completely decentralised project. There is no single authority that controls the tokens. The developers are all volunteers who have worked hard to prevent centralisation.
DigiByte was forked from Bitcoin with numerous security enhancements to improve its security and transaction efficiency. These improvements include DigiShield guard, the Odocrypt algorithm, and support for multiple mining algorithms.
No. The project has a very active and transparent development team that has announced numerous exciting partnerships in recent years. It also has a large community on Reddit and Telegram.
Yes. Most reputed platforms will insist on identity verification as part of KYC and AML regulations.