How to Buy Reddcoin - Where to Purchase RDD?
Reddcoin (RDD) pitches itself as a social currency of the digital age. It uses blockchain technology to help people not only send and tip money on social media platforms like Facebook, Reddit, Twitter and Instagram, but also support important social causes through these mediums. It was launched in 2014 as a Litecoin fork, and involves short transaction times (under a minute) and low fees.
Reddcoin was trading at $0.0056 at the time of writing. We have created this comprehensive guide on buying Reddcoin, to acquaint you with multiple aspects of buying and trading Reddcoin.
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Why Trade rather than Buy Reddcoin 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 Reddcoin Brokers
If you’re buying cryptocurrency for the first time, it’ll only be valid to question where to buy RDD, and what is the easiest way to buy RDD. Just like anything else in life, convenience has a cost. How easy it is to buy RDD will depend upon the amount of fee you are ready to cough up. Therefore, credit/debit cards which offer maximum convenience, involve the highest fee for RDD purchase on exchange/broker sites. Bank transfers on the other hand have the lowest fee, but aren’t as convenient and quick.
In general, a cryptocurrency broker platform, regulated by a well-known global authority, can be termed as the best website to buy RDD. Even though many people also use exchanges for buying cryptocurrencies, these portals can be slightly intimidating for amateur investors. In contrast, brokers provide user-friendly interfaces, have fewer fees, and besides facilitating buying and selling of crypto coins, they also offer derivatives like CFDs for speculative trading purposes. Hence, they are widely perceived as the best place to buy RDD and other cryptocurrencies. However, before picking any broker website for your crypto trades/investments, you must short-list and compare the top ones based on important criteria like their regulatory status, spreads, fees, value-added services and the quality of user interface.
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.
Ultimate Beginner’s Guide to Trading Reddcoin
What is a Reddcoin Broker?
Using a cryptocurrency broker can be termed as one of the best ways of investing in Reddcoin. Whenever you buy RDD coins, or use a Reddcoin CFD to speculate on the coin’s price fluctuations, on a broker website, your trades are executed through a network of dealers. The entire process is more flexible, secure, quicker and convenient compared to conventional exchange platforms. Furthermore, brokers are known to provide a wider range of deposit/withdrawal methods and charge fewer fees than exchanges.
What is a Reddcoin CFD?
A Reddcoin CFD (Contract for Differences) is an agreement between the broker and the trader to exchange the variance in RDD’s price, from the time of opening the contract till its closing. It doesn’t involve any transfer of RDD ownership. The main purpose of using a CFD to trade Reddcoin is to exploit the cryptocurrency’s price movements, in both directions. When used with the leverage feature, you can borrow broker’s funds and increase the size of your positions. It’s worth highlighting that while your profits can get magnified significantly through this type of trading activity, losses can be huge too.
Additionally, using CFDs is less technical compared to trading actual crypto coins on an exchange portal. You don’t need the technical know-how of setting up wallets, nor do you have to worry about exchange-related problems like slippage fees or trading liquidity.
What is the Benefit of Reddcoin Regulation?
Cryptocurrency regulation isn’t something that any trader or investor should fear. On the contrary, such regulation works as a critical framework for the legitimisation of the crypto market, and the creation of a safer investment environment for everyone. Please note, if you decide to buy or trade RDD through a brokerage site, ensure that it is regulated by a reputed global authority. One of the main reasons behind crypto regulation is to verify the true intent of people signing up with trading platforms, to keep bad actors at bay.
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 purchase, 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 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 fee. Nevertheless, they continue to be favoured by one-time and first-time crypto investors, looking specifically for convenience in their crypto purchase.
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.
The Verification Process for Trading Reddcoin
A regulated cryptocurrency broker will normally ask you for a few identification documents, before allowing you to transact on their platforms. It’s a part of their KYC (Know Your Customer) procedure, meant to protect you from fraudulent entities and to ensure that everyone who comes on board, does so for the right reasons. In most cases, the signup process is pretty straightforward and involves confirmation of your phone number, uploading of a government-issued Photo-ID and in some cases submission of a utility bill for address verification.
Reddcoin: Long vs Short Term Investment
The cryptocurrency market has evolved a great deal over the past decade, and the environment today is ripe for anyone wanting to profit from both long and short term Reddcoin investments. Nonetheless, you will need to gauge your skills, risk appetite and experience level, to figure out the right investment strategy for yourself.
Long-term Reddcoin investors believe in the strong fundamentals of the coin, and stay invested in the cryptocurrency, hoping for a better price in the future. This approach will require you to set up a crypto wallet to store your RDD coins, and demand plenty of patience to stay put during volatile market conditions.
On the other hand, short-term investors look to profit from intra-day changes in the Reddcoin’s price, by either directly investing in the RDD coins or taking the CFD route. The latter doesn’t involve any RDD transfer and can be particularly useful to profit from both upward and downward market movements. Additionally, you can combine leverage with CFD, to significantly increase your profit margins. But please tread cautiously as the losses can be equally huge.
Why Buy Reddcoin rather than Trade?
Most of the people who buy Reddcoin instead of taking the trading route, do so with a long investment horizon. These long-term investors usually take such an approach with a strong belief in Reddcoin’s future potential. Furthermore, how Bitcoin’s value has appreciated considerably over the years, also serves as an encouragement to them. Please note, to use this strategy, you’ll need to find a way to buy RDD cheap, preferably from a regulated platform, and also deal with the complexity of setting up a crypto wallet, to store your coins.
On the other hand, traders have no emotional attachment to their crypto holdings, and mostly look to buy RDD instantly and exit their trades as soon as they hit the target price. They either trade the ownership of Reddcoin, with a shorter investment horizon or use a financial derivative like CFD to simply profit from Reddcoin’s price fluctuations, without buying any actual coins at all. Please note, using CFDs eliminates the need for the cheapest way to buy RDD and does away with the requirement of a wallet too.
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 judgements 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.
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Frequently Asked Questions
Reddcoin aims at effective use of blockchain technology to help people easily send and tip money on social media portals, and also donate to important social causes.
Reddcoin uses a new type of consensus algorithm called Proof of Stake Velocity (PoSV), to secure its blockchain.
There were a total of 28,808,713,174 RDD in circulation at the time of writing.
Reddcoin was founded by a software developer named Jonathan Patenaude.
Reddcoin’s all-time high price was $0.032 on January 07, 2018, and the all-time low was $0.00000604 on May 19, 2015.
Reddcoin is supported by many well-known social media platforms including Instagram, Facebook, Twitter and Reddit.
As per estimates, Reddcoin is used by more than 60,000 people in over 50 countries across the world.
ReddFoundation is a Reddcoin-based initiative to help support various social causes in different parts of the world.