5 Things to Consider if you Want to Buy Peercoin
Before you make your first Peercoin purchase, there are a few variables that you should take into consideration. We’ve compiled five of them below.
1. Carefully choose your preferred secure payment method
The available payment options on crypto platforms will vary depending on your location. For example, PayPal may be an option available to users in the U.S., but it won’t be available to users in Cameroon.
Other factors to consider are processing speed and security. Is the platform secure enough for you to give it your credit card or bank details? How fast is your preferred payment method? Reputable platforms are usually transparent about these details.
2. Will you need to set up your own wallet?
Brokers and exchanges typically create ready-to-use web wallets for new users. These third-party wallets are convenient, but it is considered good practice to have a separate cryptocurrency wallet that you have 100% control over. Setting up your own secure wallet is especially important if you plan to hold your PPC tokens as a long-term investment.
The only exception is if you’re investing in PPC through CFDs and other financial instruments. These contracts don’t require you to actually hold any Peercoin, so a wallet isn’t necessary.
3. Comparing costs
It’s a good idea to compare any costs associated with using Peercoin. These range from transaction fees charged by crypto platforms to network fees charged by the blockchain.
Almost every blockchain charges transaction fees that are paid to miners who use their resources to validate blocks and keep the network secure. Peercoin is no exception, but unlike blockchains that have a variable fee, the Peercoin network charges a fixed transaction fee of 0.01 PPC. As a means of payment and transfer, PPC is much more affordable than traditional options.
4. Safety and security
Peercoin shares many of the security features found in Bitcoin, including the SHA256 cryptographic hash function that secures the BTC network. Any hardware that can mine BTC can also mine PPC.
The biggest difference between the two is that Peercoin was specifically designed to tackle the issues found in the proof-of-work model used by Bitcoin, such as unsustainable energy consumption. Peercoin uses a proof-of-stake model that rewards users who hold (stake) their PPC and verify transactions on the network.
To qualify, PPC holders must stake their coins for at least 30 days for a chance to take part in block generation. Those chances increase as time goes by and are capped when the age of the staked coins (coin age) reaches 90 days. At that point, the coin age is reset and the process starts all over again. The holder must stake the same coins for at least 30 days to once again qualify for block generation. This approach prevents a handful of users who hold large amounts of PPC from monopolising the block generation process.
Stakers who validate transactions are rewarded with newly minted PPC, which is why Peercoin has an unlimited token supply. The network keeps the supply under control by permanently destroying (burning) all transaction fees. Under this system, the circulating supply has a yearly inflation rate of 1-3%.
Peercoin’s approach to network safety and security is pretty good for a cryptocurrency that was launched so soon after the advent of Bitcoin. Assuming you take proper precautions, any PPC you hold is almost guaranteed to be safe and secure. For added security, combine the network’s built-in security features with the protocols offered by exchange and broker platforms such as two-factor authentication and private key encryption.
5. Can you understand and navigate the platform?
We can’t understate the importance of knowing how to navigate your chosen transaction platform. Cryptocurrency transactions are designed to be immutable; that means no refunds or chargebacks if you make a mistake like entering the wrong transaction amount.
Take the time to familiarise yourself with the platform. Figure out how it works, what fees it charges, and how long it takes to complete transactions. Maybe even do a few dummy transactions with small amounts of PPC to get a feel of the process before you commit to a larger investment.
What is the Best Payment Method for Buying Peercoin?
Crypto trading platforms offer several methods for buying Peercoin. What options are available to you specifically will depend on your location, so consider that when choosing a platform. Below are some of the most common options.
Buying Peercoin via Bank Transfer: Bank transfer is a universal option that’s available on most reputable platforms. It typically has very low transaction fees. It’s a convenient way to transfer your money back and forth when using an exchange or broker.
Buying Peercoin with PayPal: PayPal is another popular option available on many platforms. It’s fast and quite secure since it acts as an intermediary between you and your bank account or credit/debit card. If you use PayPal, then you don’t have to give an exchange or broker your bank information. Its fees are also reasonable, but it may charge more than other options, so shop around.
Buying Peercoin with Credit Cards or Debit Cards: Credit or debit cards are incredibly convenient: who doesn’t have some type of bank card in this day and age? The only issue is the transaction fees, which can be quite high, especially for credit cards. It’s not an economical option for bulk crypto purchases. Some credit card issuers may also block cryptocurrency transactions for security reasons, so confirm with your bank before you use your card.
Buying Peercoin via Crypto Transfer: Making purchases using other cryptocurrencies (Bitcoin, Litecoin, etc.) is an option that’s available on any good exchange or broker platform. It’s convenient, fast, and quite secure. The fees for crypto-to-crypto transfers are also quite low. However, some platforms may have specific fees and limits for payments using digital currencies.
What Fees are Involved in Buying Peercoin?
Cryptocurrency transactions have fees that are charged by both the network and crypto platforms. Below are a few fees you should expect:
- Transaction fees: As mentioned earlier, the Peercoin network charges a fixed transaction fee of 0.01 PPC. It’s a negligible amount, so it’s not something you should worry about. Exchanges and brokers also typically charge transaction fees when users buy or sell PPC. The exact fee will depend on the platform, so read your chosen platform’s terms before you initiate a transaction.
- Deposit fees: These are more common on exchanges than broker platforms. Exchanges typically charge a small fee whenever you make a deposit. It is typically a small percentage of the deposit amount. Brokers don’t usually charge for deposits as an incentive to get traders to join the platform.
- Withdrawal fees: Both exchange and broker platforms charge withdrawal fees when users want to cash out. It can range anywhere from 0.02 PPC to over 1 PPC depending on the platform you use.
Safely Storing Your Peercoin
Storage is an important consideration when dealing with cryptocurrencies, especially if you want to hold on to your assets as a long-term investment. Exchanges and broker platforms automatically create wallets for users when they open an account, but it is considered good practice to store your coins off those platforms. Below are some of the best options for storing Peercoin.
Web Wallet: Web wallets are third-party wallets that are designed for web browsers. Broker and exchange wallets are usually simple web wallets. They’re convenient because of their accessibility, but they’re not the most secure option. If the platform hosting your wallet is hacked or goes out of business, you could end up losing all of your assets. Web wallets that are recommended by the Peercoin developers include HolyTransaction, Coinomi, Abra, CoinVault, and Coinspot.
Mobile Wallet: Mobile wallets are convenient for quick access because you probably carry your phone everywhere. They also offer better security options like screen locks (e.g. fingerprint verification and pin codes) and private key encryption. While they’re technically more secure than web wallets, they’re only recommended for short- to medium-term storage. You could end up losing all your digital assets if someone manages to get access to your phone. Mobile wallets recommended by the Peercoin team include UberPay, Gemmer, Abra, and Coinomi.
Desktop Wallet: Desktop wallets are the most secure software storage option for Peercoin. They offer a much higher level of security than web and mobile wallets, but they are still considered “hot wallets''; i.e. they are constantly online and are vulnerable to hacks. The official Peercoin core wallet is a desktop wallet available on Windows, Linux, and macOS. The development team recommends the core wallet for long-term storage and staking PPC to secure the network and earn block rewards.
Hardware Wallet: Hardware wallets are the most secure out of all available options because they offer “cold” or offline storage. These devices, which look like a USB flash drive, are not connected to the Internet and have security features to prevent physical tampering. Hardware wallet options recommended by the Peercoin team are Ledger Nano S and Trezor.
Wallet Combinations: Savvy crypto traders use a combination of wallets for convenience, security, and ease of access. For example, a trader might use a web and mobile wallet combo for initiating quick trades, and a hardware wallet for “hodling” their most valuable assets. Some wallets are even designed to be interlinked for better convenience. A Trezor wallet, for instance, allows secure password-less login on several online platforms for easy portfolio management.
What Other Coins Can I Trade or Use to Buy Peercoin?
It is possible to buy Peercoin with Bitcoin, Ethereum, Ripple, and other cryptocurrencies using exchange platforms. You simply have to find a platform that offers crypto trading pairs that include PPC.
Exchanges typically charge fees for crypto-to-crypto trades. Some have floating rates and fixed rates for dealing with the volatile market, so compare different options before you commit to using a specific platform for your transaction.
What’s the Smallest and Largest Amount of Peercoin I Can Buy?
If you’re new to buying cryptocurrencies, you may be wondering: What’s the minimum purchase for Peercoin? Since Peercoin is based on Bitcoin, it is similarly divisible to eight decimal points. However, PPC isn’t as valuable as BTC, so while you can buy small amounts of PPC, you’ll be hard-pressed to find a platform that offers 0.00000001 PPC. The network transaction fee alone is 0.01 PPC.
That doesn’t mean you have to buy a whole PPC token. It’s still possible to buy less than one Peercoin, but it won’t be a readily available option on most platforms due to Peercoin’s low market value. On the flip side, it is possible to buy PPC without limit. Your Peercoin buy limit will depend on your chosen platform’s liquidity and your budget.
Can I Buy Peercoin Anonymously with no ID? Is it Safe and Legal to Buy Peercoin?
With all the fuss and controversies surrounding cryptocurrencies, it’s not unreasonable to ask: Is buying Peercoin illegal? Is it safe to buy PPC? Buying and selling Peercoin is perfectly legal, and there are plenty of places that facilitate secure PPC purchases.
Reputable exchanges and brokers will require users to verify their identity before they can use their services, so it’s almost impossible to use them to buy Peercoin without an ID. The only way to truly buy Peercoin anonymously is to get it directly from another person. That guarantees your purchase will be private because you won’t need to share your personal information.
Will Buying Peercoin Make Me Money?
Does buying PPC make you money? Like Bitcoin, Peercoin is meant to function as a store of value, so it can be held as a long-term investment. However, logically speaking, Peercoin’s minting system and proof-of-stake model almost guarantees that its value won’t ever reach Bitcoin’s highs.
If you’re wondering, “Should I buy Peercoin?” The answer depends on your goals. If you want to buy PPC to get rich, then you may have to wait a while for its value to go up. If you want to use PPC for transactions and trades, then there’s arguably no better time than the present. Peercoin’s relative stability actually makes it a great currency for transactions.
Check out our Peercoin Price Page for answers to questions like, “How much does it cost to buy Peercoin?” and “What’s the best price to buy Peercoin?”
How to Spend your Peercoin
Peercoin’s main use case is as a store of value. Its fixed transaction fee and sustainable mining model make it an ideal digital currency, but adoption has been slow. Despite being an older crypto project, there aren’t any well-known places that accept payments using Peercoin.
So, how can you spend your Peercoin? You could use it for crypto trading and buy CFDs and other financial derivatives. PPC holders can alternatively use their coins to conduct transactions with other PPC holders. The Peercoin community is small, but it’s growing. You could also hang on to your PPC as a long-term investment. The development team is still improving the technology and regularly announces new partnerships. Peercoin’s value has the potential to rise in the future.
How to Sell your Peercoin
The easiest way to sell Peercoin is through an exchange platform. You can either find an exchange that can give you USD or another fiat currency for your PPC tokens, or you could trade your tokens for a more valuable cryptocurrency like Bitcoin or Ethereum. Once you have BTC or ETH, you can easily sell them for fiat money on numerous exchanges or even through a Bitcoin ATM.
Another alternative is to use CFDs. Peercoin isn’t a very popular currency, so it may be tough to find CFDs that are pegged to the market price of PPC. However, you could trade your PPC for other cryptocurrencies and then use what you get to buy CFDs. In general, it’s easier to offload CFDs than cryptocurrencies, especially if you have a CFD for a very valuable cryptocurrency like Bitcoin, Ethereum, Litecoin, or Ripple.