How to Buy Peercoin (PPC) - A Beginner’s Guide

Riding the Peercoin popularity and rising prices but free from the stresses of owning and handling PPC can be very attractive to many people, especially those who have had experiences in using brokers for traditional instruments such as securities, ForEx, and bullion. If you want to use a broker, we suggest you do a bit of a background check on any broker platform you want to use. Always go for a regulated or compliant platform as it will give you certain trader rights and at the same time, peace of mind that it will not scam you.

Apart from comparing the compliance, analyse the trading fee and other charges involved as it affects your take-home profits. At the same time, see what kind of cyber securities are on the table (any two-factor authentication, protection against hacks and attacks etc.).

1. Register with the Broker

You will need to have a trading account with a broker before you are going to be able to buy or trade Peercoin. Every broker will have its own registration process, but it will be as simple as signing up on any other online platform. 

Forex.com is a broker that requires you to mention your place of residence, name, date of birth, email address and a proposed password to register.

2. Verify your Identity (KYC Process)

Any compliant and regulated exchange will need to follow specific financial laws set by their jurisdiction and as such KYC (Know Your Customer) will be a part of your trading account opening. This includes information that will help the broker verify you and your income sources. Some people may baulk at the idea of handing over sensitive and personal information, but this is a better option than using a broker that does not comply with the law and increasing the risk of the platform turning out to be a fraud.

The documentation you upload under KYC is used by the broker to combat any financial and tax fraud. You will also be a part of a wider movement of making cryptocurrencies such as Peercoin a mainstream and a regulatory accepted financial instrument.

3. Deposit Funds with your Preferred Payment Method

Post KYC and AML clearance by the broker, you will be able to transfer money to your trading account. Since trading through a broker is all about buying and selling contracts, you will most probably need to fund using any of the supported fiat currencies.

It’s the prerogative of the broker to accept different kinds of fiat payment methods, but you will mostly find credit and debit card support. This is the easiest way to fund your account. You can head over to the funding or wallet page of the trader and select this option. All you will need to do is enter your card details such as:

• Card number
• Your name on the card
• The expiration date
• CVV code

All you need to do now will be to mention the amount of cash you want to be sent over.

Bank transfer is another funding option that a broker might have. This is a much safer option than using a credit card but is a bit slower. If you are in no hurry, use this. Some brokers may even support other payment systems such as PayPal.

No matter what funding method you use, it is paramount that you keep an eye on your and the platform’s security. Double-check the platform’s website and only use the official app to avoid any phishing attempts. Ensure that your antivirus is active and updated and turn on real-time protection.

Another tip is to only send a small test transfer to the broker. If there is any phishing or anything wrong with the transaction, you only will lose a small amount and save yourself from a potentially large fraud.

Once you have ensured that everything is safe and secure and that the test fund has been received by the broker, you can initiate a second transfer, sending over the rest of the fiat you want to use for trading.

4. Open a Position to Long/Short Peercoin

Since brokers offer you different contracts for trading on the price and value of Peercoin, you will find that there are many different clauses and options that the contract and the broker offer you to practically trade in different ways that are not possible in buying PPC. One of these is the ability to long or short a position.

A long position is regular trading, where you enter a contract in hopes of the PPC price rising so you can close at a higher value, keeping the difference as profit. This is only possible in a bullish market though. Otherwise, you end up making a loss.

So what if you are expecting or witnessing a bearish market? The logical step would be to close any positions you have open (or ride it out if your analysis says it is just a dip and the Peercoin price will jump back up) and wait until the market has bottomed out to buy back for a bull run.

Brokers offer you a chance to make money even if the market is facing a bearish sentiment. You can use a short position to declare your bet that the price of PPC will fall. As long as your prediction is correct, the falling value will define your profitability. In this way, you don’t have to wait for the market to rise and have the ability to make profits no matter what the market situation is.

You can use both positions with a variety of different orders at your disposal. You will always find a market order, letting you open your position at the going rate of PPC, your say being only on the number of coins or fiat to commit. If you are not satisfied with the market price, you can opt for a limit order, where you can request the broker to open a position when the preferred PPC price is available. A stop-limit order helps you to ensure that you open a position through the limit order only when the market has achieved the level you want.

5. Close your Position

You can close your position whenever you are comfortable with the potential profits. This can be automated using a take profit order, where a stop-limit will close your position for you. Similarly, you can also define the maximum loss you are willing to bear in case of the market going against your prediction (a stop-loss order). 

The advantage of using these automated orders is that you don’t need to be actively logged in on the broker platform, as the orders will be placed in the order books as per your defined market situation and will be executed as soon as there is a matching order from the other side.

Sometimes you will not find a matching order, meaning your closing order can remain active but not executed. With the volatility that cryptocurrencies are famous for, you might even need to change your parameters or manually execute a closing. In all cases, you can cancel orders placed in the order book and initiate new ones.

How to Buy Peercoin with an Exchange

If you think that trading with all its complex orders and features is just not your thing, or you prefer to have PPC coins in your possession, you should buy Peercoin on a crypto exchange. Should you desire to do so, go through this section as we guide you on how to buy Peercoin.

Before you start using an exchange, the same precautionary measures we mentioned in the previous section for brokers apply. There are many Peercoin exchanges today you can sign up on. Check out their security, legal compliance and reputation before deciding to register on one. Don’t forget to view their charges on deposits, withdrawals and any swap you perform.

1. Set up a Peercoin Wallet

It is always advisable to buy Peercoin and move it off your exchange for safekeeping. Though all exchanges do offer a wallet service, all mainstream crypto exchanges are centralised and that means that they are custodial and have control over your crypto coins.

There are many Peercoin wallets available online, even from the developers. You can use any of the compatible cryptocurrency wallets. Each has its features and it is up to you to decide which is best suited for your use. Each Peercoin wallet can be categorised in two ways:

• Software or Hot Wallet: Available only as an app or a web interface, these wallets are called hot since they are always online and connected to the Peercoin network. Very easy to use, their always-online nature means that if your private key is stolen, you will not be able to stop the thief from stealing your PPC.
• Hardware or Cold Wallets: Small and expensive, these USB based devices can store your PPC coins. The high price is offset by the added security of disconnecting from the Peercoin blockchain. You can store your PPC coins in it and put the device somewhere safe and it will be impossible for anyone to hack or steal your coins.

2. Choose and Join an Exchange that sells Peercoin

Now that you have a private wallet set, it is time you register on a Peercoin exchange. There are many platforms you can choose from. Bittrex, Hotbit and HitBTC are a few popular ones. The buying process is identical on each of the exchanges and you will not face any difficulty. However, you should factor the different security, features, and charges into your decision.

Always make sure you use a regulatorily compliant exchange and give proper documentation so you don’t face any issues down the line.

3. Choose Your Payment Method for Buying Peercoin

When you are registered and have cleared all KYC checks, you can head over to the exchange wallets to fund your account. Exchanges, like traders, might accept fiat currencies so you can always check out if they accept your credit card or have a bank transfer option. The same security and precautions go for funding your Peercoin exchange that we have already outlined in the broker funding subsection.

The exchanges also support a variety of crypto funding. If you already do have any other cryptocurrency, you can check if the platform has support for it and transfer it over to fund your account.

4. Place an Order to Buy PPC

With funds transferred over to your crypto exchange account, you are all set to begin purchasing your Peercoin.

The only thing you need to confirm is what trading pairs the exchange has against PPC. If there is one for your deposited fiat or crypto, you can directly buy Peercoin. In case PPC is not, you will need to find a common crypto that has a pair against your funds and Peercoin. An extra step, but necessary in this case.

Upon selecting your exchange pair, the platform will take you to the buying and selling page, with all the interfaces showing information on the coin. You can select the type of order you want (market, limit, stop limit, FOK, OCO, and so on), fill in the details and simply tap the Buy button.

5. Safely Storing Your Peercoin in a Wallet

As soon as the buy order is executed, the exchange will place the PPC coins in your account wallet, which you can view by heading over to the wallet option and selecting Peercoin from the list of available cryptos.

If you want to sell off your Peercoins in the immediate or near future, there is nothing else to do. On the other hand, should you prefer to store it long-term (or the PPC is in significant quantity), you should transfer these to your private wallet as we discussed at the start of this section. Exchanges are custodial and run a risk of hack or liquidation, meaning you can lose your Peercoins, so this step is important.

Go to the exchange wallet and use the withdraw option, enter the public key or the wallet address of your private wallet and transfer the coins in your custody. Be extra careful in entering the wallet address. A wrong address means you will lose your coins, and the way blockchain is created, you will not be able to recover your coins at all.

Should you Buy or Trade Peercoin?

If you want to have custody of Peercoin, you should buy as trading is based on the Peercoin price and doesn’t entail ownership. You can still buy Peercoin and sell frequently using a crypto exchange, but you are better off trading since that allows you to use the different tools such as leverages and shorts.

If you want to invest in Peercoin in the long term, trading is not the best solution as holding PPC will not cost you anything but holding a contract may incur a constant or fixed fee (for example a premium on Options and interest on leveraged trades).

What’s the Difference Between a Peercoin Exchange and a Broker?

Using both Peercoin exchanges and brokers can result in profits if done correctly. The only difference is you have the right to hold either the PPC coins or a contract that gives you the right to claim the value of a specified PPC amount.

Beyond this basic difference, there is a lot more going on, though. Using an exchange, you will be holding Peercoin, but since trading with a broker has no limitation on having PPC, the broker can offer you profit-making options that you cannot with buying. Options, for example, are contracts that allow you to buy Peercoin in the future at a predetermined rate that can be lower than the market rate at the time of maturity, giving you profits. At the same time, if the market rate is higher than the one agreed, the trader can back out, cutting losses by only giving up the small premium paid at the beginning of the contract.

Peercoin: Long Vs Short Term Investment

You can buy Peercoin to take advantage of the long term price discovery or capitalise over a smaller period with trades. Both types of investment have their benefits and advantages.

If you prefer to wait it out and grab the large price movements that are infrequent and far apart, you should go for a long term investment. During this, smaller price movements should not affect your position as long as your calculations show that the dip is temporary and the price will not only recover but go higher.

A short term investment is the right selection if you want to do frequent buy and sell cycles, each time buying a dip and selling high to increase your wealth. You could benefit more if you trade using a broker and use advanced leveraging and contracts.

3 Tips to Buy Peercoin

You are ready now to go ahead and buy Peercoin and discover the wonders of holding and using cryptocurrencies. Before you do so, keep three things in mind to be a success.

1. Choose the Right Time and Do Your Own Research on Peercoin

A little bit of research goes a long way. Check out what is happening in the Peercoin world and the crypto-verse at large. You should learn about how to interpret technical and fundamental indicators. These will give you a fair idea of where the market is headed. You only benefit from buying PPC if it is going to rise in value.

2. Comparing Costs to Buy Peercoin

You may be getting a good price on an exchange but the costs involved will offset it. Compare the different costs associated with your whole buying process such as banking fee (direct bank transfer, credit card, or others), any deposit fee (and eventual withdrawal if you want to shift to your private wallet) and the buying charges associated.

You might find that buying it at a significantly higher rate from one exchange will result in more savings in comparison with another, due to fees.

3. Safety and Security when Buying Peercoin

The online world is a wild west frontier with scammers, fraudsters, and hackers constantly using new and innovative ways to steal money. The meteoric rise of cryptos, especially Peercoin, makes these a prime target.

Always make sure you are using a legitimate platform and only their official app or website. Keep your antivirus updated and double-check everything before divulging your payment information.

What is the Best Payment Method for Buying Peercoin

• Buy Peercoin with Cash: You can always look for a seller and meet to initiate a transaction and pay cash.
• Buy Peercoin with Credit Card: By far the easiest and fastest method.
• Buy Peercoin with Bank Transfer: Perhaps the most secure of all. Might take some time if multiple banks and different jurisdictions are involved.
• Buy PPC with Bitcoin: Nearly every exchange offers a PPC/BTC pair. Instant swap.
• Buy Peercoin with PayPal: Very convenient, but not all exchanges support PayPal.

Other Ways to Buy Peercoin

Peercoin uses a unique dual consensus method where PoS is used to secure the network and PoW is for validating transactions. You can earn Peercoin by staking PPC to gain a chance to find a block (and its PPC reward) or use PoW as a transaction validator and earn the transaction fee.

Since the PoS system is used for securing the network, there is less of a hashrate war on the PoW side, and it is very practical to become a transaction validator. If you find that your current computing power is not up to par, you can always invest in a good ASIC miner. You can also increase your chances of earning the transaction fee by joining a mining pool or even renting out computing power through cloud mining. Mining is a great alternative way to get PPC coins.