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How To Buy Siacoin | Ultimate Guide To Buy SC

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Siacoin has been around as a cryptocurrency for some time now, having originally been conceived in September 2013. David Vorick and Luke Champine designed the project while they were undergraduate computer science students with the HackMIT 2013 conference playing a major role in its development.

Siacoin (SC) differs from many other cryptocurrency projects as it is based on the token being used as payment for file storage. With this in mind, Siacoin has become an interesting trading platform, so in this article, we’re going to discuss all of the issues related to Siacoin and its complimentary token.

5 Steps to Buy Siacoin with eToro Now

Buying any cryptocurrency with eToro is easy, simply follow the steps below:

  1. 1
    Sign up for free with eToro, entering your details in the required fields.
  2. 2
    Fill out the questionnaire, this is both educational for you and eToro.
  3. 3
    Click 'Deposit', you'll then be asked how you want to fund your account.
  4. 4
    Choose your required payment method, follow the simple steps to link your payment.
  5. 5
    Enter the amount you want to deposit and you're good to go!

How to Buy Siacoin with a Broker

One of the best ways to purchase Siacoin is via an online cryptocurrency broker, and this particularly applies if you have never traded cryptocurrencies previously. Brokers assist traders with the whole process of investing, reducing the attention that you need to pay to the market, and doing a lot of the more trivial work for you.

In order to achieve this, brokers tend to be experts in both altcoins and the markets, and can handle all aspects of trading. Nonetheless, you should still research your broker before committing, as different fees, security, and levels of encryption are inherent in the market.

Regulation of the cryptocurrency space has also had a massive influence on the way that brokers operate, and you should definitely ensure that any broker acting on your behalf is aware of all the latest legislation.

You can also provide instructions to your broker via a series of orders, such as stop orders, which enables you to play an interactive role in the process. Many brokers also allow the use of robots that enable you to trade in an automated manner. 

1. Register with the Broker

Registering with a broker is necessary for any new Siacoin investor. There are many platforms that are available for this purpose, but they are generally quite user-friendly regardless of your choice, as they are designed to be intuitive for beginners. You will be required to provide your full name, email address and set a username and password for registering a new account. 

However, there can also be differences in the registration process. For example, Plus500 makes it possible to register for an account via social media platforms, while eToro purely uses an account name and password system. Other platforms have further approaches as well, so you should definitely research this before committing to a particular broker, and initiating the registration process.

2. Verify your Identity (KYC Process)

One important aspect of the contemporary cryptocurrency marketplace is the verifying your identity process, often compliant with ‘Know Your Customer’ (KYC) verification. This was already popular with the established financial system, but it has now been adopted by cryptocurrency with the aim of attaching credibility to the niche.

KYC is an official legislative process that helps ensure that the cryptocurrency space is safe and secure. Any site that uses KYC will necessarily be more credible, and this is helping cryptocurrency to be more accepted by the mainstream financial system.

3. Deposit Funds with your Preferred Payment Method

Depositing funds is the next process in purchasing cryptocurrency, and in order to do this, you need to confirm your preferred payment method. Most payment methods will be available with the majority of platforms, but you should certainly research this further before committing to a particular approach.

Additionally, there are considerations involved with regard to speed and fees. These are both particularly important in transactions, so you should also research these diligently. Finally, firewall and antivirus software should also be in place before making any deposits.

4. Open a Position to Long/Short Siacoin

One of the trading options available to cryptocurrency investors is to either go long or short on the token. But not everyone is initiated in what it means to take a long or short position.

Going long on cryptocurrency is the traditional position with investment generally. By taking a long position, you are asserting that the crypto will increase in value over a period of time. It is effectively a display of faith in the project.

Short positions, also described as short selling, or just selling, are quite the opposite of this approach. Anyone taking a short position on a cryptocurrency believes that it will decline in value in the foreseeable future. However, it should also be noted that those shorting a particular token will lose money if it does indeed increase in value. CFD contracts are also usually involved with short selling cryptocurrency. These enable more leverage, which means that this is a more advanced approach to trading. 

It should also be noted that stop-loss, market, and limit orders are important in the cryptocurrency trading mechanism. These translate instructions to brokers, ensuring that they are able to conduct the market activity that investors require.

5. Close your Position

Closing any position in cryptocurrency is obviously essential, and this can be achieved automatically by using a stop-loss order. This automatically conveys the desire for your broker to close your position when you believe the market conditions are advantageous to your trading strategy.

In other scenarios, stop orders can also be used when the market is turning against a particular investor, and they wish to get out of the token due to losses that they have already incurred. Either way, the process remains the same, and the stop order can be used to automatically cease trading. You can at any time also close the position manually. 

How to Buy Siacoin with an Exchange

Purchasing Siacoin via a cryptocurrency exchange is a fairly easy process, as modern platforms are particularly user-friendly and helpful for beginners. You should have no problem purchasing Siacoin via an exchange platform, but it is still important to choose the appropriate exchange for your particular needs.

Fees and security will naturally be a major part of this process, not least due to the fact that they significantly differ between various platforms. You should also consider the level of regulation and encryption associated with a particular platform, and even clarify this with the developers before engaging in any trading activity.

1. Set up a Siacoin Wallet

Storing Siacoin via a cryptocurrency wallet solution is definitely the most secure way to look after your tokens. There are hardware and software solutions available, so it is important to understand the difference between the two.

Software wallets can be considered more convenient, as they can be used online, or often via desktop and mobile platforms. Software wallets are based on computer programs and offer a level of flexibility that appeals to many users.

However, hardware wallets are generally considered to be more secure, utilising a technology that is referred to as cold storage. Private keys are essential with hardware wallets, and, if stored securely, ensure that it is completely impossible for anyone to ever access your cryptocurrency.

2. Choose and Join an Exchange that sells Siacoin

There are many cryptocurrency exchanges available on the Internet now, for those who are looking to buy and sell Siacoin. Some of the most popular exchanges include the following:

There are several differences between exchanges, most notably in terms of the fees that each platform charges. User interfaces also differ quite significantly, while security provisions are also likely to be a point of comparison. Exchanges also tend to accept different currencies and payment methods, while registration and licensing will also require research.

3. Choose Your Payment Methods to Buy Siacoin

There are numerous payment methods available to acquire Siacoin, and these can differ in several important ways.

Debit cards - definitely the most affordable way to purchase Siacoin, but not featuring some of the security provisions associated with credit cards in particular.

Credit cards - a very fast and secure way to purchase Siacoin, but tending to attract fees as part of the process.

PayPal - PayPal has become extremely popular in recent years, but the digital payment system isn't accepted by all retailers. It should also be noted that there are question marks regarding the ability of PayPal to mitigate against fraudulent activity. PayPal also tends to attract fees for all transactions.

Bitcoin - Siacoin can also be acquired via Bitcoin, with the market-leading cryptocurrency being a major purchasing mechanism.

4. Place an Order to Buy SC

Buying Siacoin involves registering for the cryptocurrency exchange or brokerage of your choice, before confirming your identity on the brokerage or exchange platform. You must then register your chosen payment method, before depositing money on the website via your approved payment method.

Next you should identify the investment that you wish to acquire, before purchasing the coin, and storing it securely in your wallet solution, which should usually be a cold storage hardware wallet.

Finally, you should inform your brokers of your trading intentions, if indeed you have decided to go with a broker.

5. Safely Storing Your Siacoin in a Wallet

Stirring Siacoin safely in a wallet solution is not a particularly difficult process, but it is an important part of the overall acquisition journey. It becomes particularly important if you intend to store Siacoin for a significant period of time.

Hardware wallets tend to be the best way to go, and these use a private key system in order to secure your tokens. It is essential to store your primary key in an encrypted location, as anyone gaining access to your key will equally gain access to your tokens.

Should you Buy or Trade Siacoin?

Buying or trading Siacoin is one of the fundamental decisions that investors in the cryptocurrency platform need to decide on. There are advantages and disadvantages of both, but going through a professional broker can be a natural choice for beginners. Nonetheless, you should view this as an automatic way to make money, but it still requires a certain knowledge of the market.

Conversely, purchasing tokens and holding them for a significant period of time is a low-maintenance approach to cryptocurrency, which doesn't require you to monitor the market, or have a huge amount of knowledge or experience. 

Nonetheless, there are many options available to Siacoin investors. Taking a long position is certainly valid, but other trading options should also be taken into consideration.

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

There are various differences between exchanges and brokers. Exchanges are essentially intended to enable customers of Siacoin to execute their own trades. Conversely, brokers act as intermediaries, conducting virtually all trading activity on behalf of the investors, although, as discussed previously, some guidance is part of this process.

Brokers tend to charge higher fees, as they are delivering a useful service to investors. However, they can be particularly suitable to beginners, who do not necessarily have the market knowledge in order to trade cryptocurrency effectively. 

On the other hand, exchanges are more flexible and quicker, particular considering that they can usually be accessed via mobile systems. However, brokers make it more feasible to operate CFD contracts, which bring both flexibility and increased leverage into the trading process.

Siacoin: Long Vs Short Term Investment

Any investment in Siacoin can be focused on a long-term or short-term investment strategy, so it is important to understand the advantages and disadvantages of both.

If you're intending to make money with Siacoin in the long term, this involves achieving price discovery, which tends towards more of a buying and holding strategy. Conversely, a short term investment in Siacoin is more associated with trading, and can often be completed in very short timeframes.

Opting for a long term strategy is respectful of market fundamentals, and will find favour with those individuals who have a patient outlook. Short-term trading is undoubtedly more volatile, and definitely risky. However, the rewards can be more instant, and it, therefore, appeals to those who understand the market particularly well.

Short-term investment is also associated with leveraging and other trading mechanisms which offer flexibility, and this is definitely a major advantage. But if you purchase Siacoin and hold it, you are retaining a physical asset, which can then be used for other purposes as well as simply trading.

3 Tips to Buy Siacoin

In this section, we will provide you with three useful tips for purchasing Siacoin. 

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

Researching before investing in the cryptocurrency is absolutely essential, as its performance in bull and bear markets will vary hugely. You must therefore research market issues with particular diligence. A bit of research into the price history of Siacoin will help you in deciding when to buy the coin for maximum returns. 

2. Comparing Costs to Buy Siacoin

Fees can differ quite significantly between platforms, so it is always important to compare costs. Some platforms provide research insights and charge a premium for such services while others charge low fees but provide a bare minimum interface for trading. You should carefully consider costs and decide on an appropriate platform based on your budget and trading requirements. 

3. Safety and Security when Buying Siacoin

Safety and security is definitely an important consideration with any investment, and this equally applies to Siacoin. Prioritising safety and encryption should be considered important, while features such as customising user profiles under cold storage can also add protection. Some platforms provide additional security features such as 2FA to ensure a safe and secure trading environment for their users. 

What is the Best Payment Method for Buying Siacoin

  • Buy Siacoin with Cash: There are usually few opportunities to purchase Siacoin with cash, but if you're fortunate you may meet a willing trader in the offline universe.
  • Buy Siacoin with Credit Card: Undoubtedly the most popular way to purchase Siacoin, credit cards offer excellent security but there may be additional fees associated with this payment method.
  • Buy Siacoin with Bank Transfer: Bank transfers are another way to purchase Siacoin, that will always find favour simply due to the fact that virtually all investors have bank accounts.
  • Buy Siacoin with Bitcoin: Bitcoin can often be used to purchase Siacoin.
  • Buy Siacoin with PayPal: The digital payment system PayPal is popular, and this is another way of acquiring Siacoin.

Other Ways to Buy Siacoin

Aside from those mentioned already, there are other payment methods also available for Siacoin. Firstly, you could mine the tokens, thus negating any payment whatsoever. P2P exchanges are also a valid approach although it is a  bit risky to meet an individual in person, while staking is also possible, and even Siacoin ATMs could appear in the future.

Siacoin is a cryptocurrency token that offers a unique use case, and this promises to be a popular part of the digital world in the future. If its developers can successfully take on the likes of Amazon in a cloud provision then the future could be considered bright for Siacoin as per some experts.

Frequently Asked Questions

  1. Siacoin sells on various other exchanges, not just Siacoin Bittrex. Upbit and Poloniex are also good options. Siacoin Coinmarketcap is a good place to look at all exchanges, as well as to see the current Siacoin to USD price ratio.

  2. You can download the official current Sia apps from the official site, or from the official Github Sia-UI releases.

  3. Sia is an important part of the Siacoin project, as it represents a new way that data can be stored in the cloud. Sia aims to compete with conventional cloud storage platforms like Amazon S3, and developers claim that it can do the job in a superior fashion.

  4. Sia's core team consists of David Vorick: Cofounder, CEO, Core Developer, Luke Champine: Cofounder and Steve Funk is the community manager.

  5. Cloud storage is a $20 billion market and is projected to increase to a $200 billion market in the foreseeable future. The developers of Siacoin believe it can achieve a market share as great as 90%, owing to the outstanding performance of its core technology.

  6. According to its developers, Sia is cheaper, faster, more reliable, more secure, and has better uptime than the traditional cloud. Sia has hosts within 50 milliseconds of every major city in the world, and those behind the project believe that no other centralised storage solution can match this.

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