How to Buy Reddcoin (RDD) in 3 Simple Steps

5 Things to Consider if you Want to Buy Reddcoin

There are several important factors that must be considered before buying Reddcoin for the first time. These factors include the fees involved, payment methods, security, storage options and the user-friendliness of the platform. Let’s look at them one by one.

1. Carefully choose your preferred secure payment method

Based on where you are located in the world, you’ll be provided with different payment methods for the purchase of Reddcoin. Some of the most popular options include PayPal, Bank transfers, debit cards and credit cards. Each has its distinct pros and cons. It’s important to pick one which meets all your needs with respect to cost, convenience and speed.

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

If you choose to invest in Reddcoin by buying RDD tokens, you will require a storage medium to keep your coins safe. The crypto market is inundated with all kinds of storage options for cryptocurrencies, each one varying in terms of risk and accessibility. Leaving crypto coins on an exchange-provided web wallet is the riskiest, while a cold hardware wallet works out to be the safest. In terms of accessibility, mobile wallets are considered the best, while desktop wallets offer a mix of both convenience and security.

3. Comparing costs

Each time you send a crypto coin to someone, you will need to pay a small percentage or sum as a network fee. In the case of Reddcoin, this fee can be either zero or an optional low-fee that comes with a priority transfer functionality. Apart from that, transferring RDD to someone on an exchange/broker portal may involve separate transaction fees charged by the platform and the payment facilitator.

4. Safety and security

As with most cryptocurrencies out there, Reddcoin is also created on a decentralised network. It uses a novel consensus algorithm referred to as the Proof of Stake Velocity (PoSV), for securing its blockchain. This mechanism is a modified version of the commonly used Proof of Stake (PoS) system, and hands out additional rewards to stakers and transaction validators.

Over and above the blockchain security, you’ll need to look at the security aspect of the brokerage and exchange platforms too. Most regulated portals employ a wide range of safety mechanisms to protect traders/investors’ interests, including Two-Factor Authentication (2FA).

5. Can you understand and navigate the platform?

To come to a decision about the platform for Reddcoin purchase, it will be important to ascertain if it‘s easy to navigate and understand, or not. Browsing through it and gaining a good understanding of its workings beforehand can prevent you from inadvertent and costly errors later. Broker websites are normally easier to use than exchanges.

What is the Best Payment Method for Buying Reddcoin?

There is no single ‘best method’ for buying Reddcoin, only the ‘best method’ that suits your needs. You may get a wide range of payment options for Reddcoin purchases, depending upon your location and the platform.

Buying Reddcoin with PayPal: Though PayPal is a highly trusted and easy means to pay for cryptocurrency purchases, not many exchanges accept it as a valid payment method. Regulated brokers are more likely to offer it for crypto purchases.

Buying Reddcoin with bank transfer: Easily the most popular mode of payment when it comes to crypto purchases, bank transfers aren’t as fast and convenient as PayPal. But their transaction fee is the lowest among all payment methods. Almost every exchange and broker accepts bank transfers without any hassles. In addition, buying Reddcoin via bank transfer, on a broker site works out to be better than on an exchange, as the former is easier to use and involves fewer fees.

Buying Reddcoin with a credit or debit card: Despite being extremely popular for online/off-line purchases, and offering a higher degree of convenience, credit and debit cards aren’t very popular among regular crypto traders, because of their high transaction fees. Nevertheless, they continue to be favoured by one-time and first-time crypto investors, looking specifically for convenience in their crypto purchases.

Buying Reddcoin with cash: The digital world and cash have never mixed well, and buying cryptocurrencies with cash can prove to be a fairly involved process. It would essentially require locating a reliable seller on a P2P marketplace and then meeting them in person, to hand over cash for Reddcoin purchase. It’s not the best approach to buy this cryptocurrency because of the inherent risks involved.

What Fees are Involved in Buying Reddcoin?

It doesn’t matter where you buy RDD coins from, you’ll always have to bear certain charges as a part of this process. Both brokerages and cryptocurrency exchanges will levy some charges for using their services. These fees are critical for them to stay in business and create a secure trading environment for people.

Transaction fees: Reddcoin has been created in a manner that its blockchain facilitates zero or extremely low-cost RDD transfers to anyone. Apart from the network transaction fee, you’ll also need to account for the transaction fees associated with the exchange/broker platform and the payment mode used to buy Reddcoin.

Deposit fees: It’s a common practice among crypto exchanges to levy a charge for deposits made into their accounts. Brokers either completely avoid this charge, to attract more traders to their service, or keep it extremely low. Please bear in mind, the exact percentage or value of the deposit fee will depend on the payment method too.

Withdrawal fees: Both brokers and exchanges also charge a withdrawal fee to the traders/investors. It is applied regardless of whether withdrawals are in crypto or fiat currency. Brokers keep this fee under 3%, and exchanges normally have a higher fee, often going up to 5% for some platforms.

Safely Storing Your Reddcoin

Any Reddcoin you purchase, whether with a long or short investment horizon, will need to be stored somewhere safe, so you can use them whenever you like. Let’s go over some of the common crypto wallet options available in the market today.

Web Wallet: As suggested by its name, a web wallet resides online and is used within a browser environment. It is integrated into the exchange or brokerage platform and comes as a part of their service. Crypto investors are often seen leaving their coins in the exchange wallets, with the intention of selling them as soon as the crypto price reaches a certain point. While these wallets allow quick accessibility, the problem is that exchanges have a history of getting hacked, going bankrupt and in some cases even getting exit-scammed. Therefore, you must look for more secure wallets to store your crypto holdings.

Mobile Wallet: Mobile wallets are considered a type of ‘hot wallet’ as they stay online most of the time. They are used on mobile devices in the form of apps and have inbuilt security features to protect your coins. You can use additional security layers like fingerprint recognition, face recognition and PIN code on the mobile device, to further secure your mobile wallet. Whilst they are safer than web wallets, their constant internet connectivity exposes them to hacking attempts.  Coinomi and Guarda wallets are common for RDD storage.

Desktop Wallet: A desktop wallet can be termed as a third-party software program meant to store your crypto coins, including RDD, on a laptop or desktop computer. Provided that you opt for a well-known desktop wallet, you can obtain a higher degree of security than most mobile and web wallets in the market. They too are categorised as ‘hot wallets’ owing to their constant internet connectivity, and hence pose a certain degree of risk. Redd Wallet, the native desktop wallet of Reddcoin is by far the best in this category for RDD storage. Apart from that, you can also use the desktop versions of Coinomi and Guarda.

Hardware Wallet: By far the safest option to store your RDD coins, a hardware wallet is normally sold in the form of a small flash-drive-sized portable device. It’s classified as a type of cold wallet as it stays offline all the time until you plug it into a computer or mobile device connected to the internet, to move your funds. While they’re right at the top in terms of security, hardware wallets don’t score too well in the accessibility department. Reddcoin isn’t supported by any hardware wallet yet, so you should use any of the above wallet types to store your coins safely.

Wallet Combinations: Many experts recommend splitting your crypto holdings between multiple wallet types. Few of the wallet types detailed above can be strategically interconnected, to accomplish such functionality.

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

Historically, other than fiat currencies, Bitcoin has always been the first choice to buy any cryptocurrency. However, with the maturing of the crypto market over the years, exchanges are offering more and more ‘trading pairs’ to interested buyers/investors. Therefore, you may be able to buy Reddcoin with Cardano, Tether, Ripple, Ethereum, and many more top-rated cryptocurrencies out there. You’ll simply need to sign up with a well-known crypto exchange that offers a trading pair with RDD and the crypto coin of your choice. Thereafter, it will be just about depositing your coins to the platform and exchanging them for the required amount of RDD.

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

The low market value of RDD ($0.0056 at the time of writing) may make it impractical to buy small amounts of RDD for trading or investment purposes. Some platforms usually also impose a minimum investment/deposit limit.

Whether you will be able to buy large quantities of Reddcoin, or in other words buy RDD without limit, will depend upon the crypto exchange/broker you are using to make the purchase and the local regulatory laws in your country of residence.

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

Even though there are many anonymous cryptocurrencies, also referred to as ‘privacy coins’ available in the market, Reddcoin isn’t one of them. Any RDD transaction that you make, can be possibly traced back to your address. Additionally, it may not be possible to buy RDD anonymously through a P2P exchange, as it’s not as expensive and popular as other coins like BTC or ETH. which can be purchased anonymously with cash through such platforms.

In most countries, the best way to make secure RDD purchases is through a regulated cryptocurrency exchange or broker platform. Please note, there may be websites that allow you to buy RDD with no verification, but they may not be the safest to transact with. So, if you want to buy RDD safely, stick to a regulated service provider.

Will Buying Reddcoin Make Me Money?

There are no guarantees in the cryptocurrency markets. That being said, Reddcoin is founded on solid fundamentals and can be expected to fare well in the times to come. Furthermore, to make more accurate judgments regarding its profit potential, you’ll need to look at other aspects like historical price movements, macro-political environment and upcoming news related to the coin. If you’d like to learn about the best price to buy RDD, or how much does it cost to buy RDD today, you should check out our Reddcoin Price Page.

How to Spend your Reddcoin

The ideal way to spend Reddcoin would be to tip someone or contribute to a social cause. Having said that, you can also exchange it with other cryptocurrencies or sell it for fiat currency on a crypto broker/exchange. RDD is quite different from other coins like LTC and BTC which are primarily used as digital currencies for online/offline payments. As of now, you can’t buy any goods and services off the internet or otherwise, using Reddcoin.

How to Sell your Reddcoin

There are two ways you can sell your Reddcoin–via a crypto exchange or a crypto broker. Taking the exchange route normally involves more fees and is a more complicated process than using a broker, as you’ll have to understand the former’s workings, to avoid any expensive mistakes. On the contrary, if you used a CFD to invest in Reddcoin, it would be a rather quick and simple process to sell off your holding. In fact, most brokers permit the use of trading bots for the automatic closure of open CFD orders.