How to Buy Hbar
How to buy hbar cryptocurrency from exchanges
Summary: How to buy hbars will be a common question in the cryptocurrency market when the Hedera Hashgraph coin is released to crypto exchanges in the near future. Open Access is the moment that the Hedera token will be made available to all early investors in the Hashgraph public platform. If you are new to cryptocurrency or are unfamiliar with the process of purchasing hbars it will be instructive to read about the major pitfalls that can occur in the process. Also, it will be advantageous to understand the differences between ‘hot’ and ‘cold’ wallets, the hbar exchange listing process, coin transfer methods between wallets and exchanges as well as how to make peer-to-peer transactions.
Hbar is the utility token of the Hedera public distributed ledger technology (DLT) that permits users to make cryptocurrency transfers, utilize smart contracts in a variety forms as well use secured file storage with confirmed receipt and deletion of sensitive material. The technology in Hedera Hashgraph (HH) is revolutionary in its major improvements beyond all other crypto platforms in the categories of speed, scale, security, stability through governance and fairness of timestamp, ordering and access of transactions.
Buying hbars can be a difficult task for the newcomer to crypto markets. It will be necessary to take extra precaution in order to avoid a misdirected spending or incorrect receive transaction. The ecosystem of cryptocurrency is still in active development and has relied on computer savvy individuals that may already be aware of the process and its potential hazards. Following these guidelines and warnings will benefit the new or inexperienced digital asset investor.
Using a hot wallet is necessary for any transaction on an exchange. This comes with risk of coin loss though. A cold wallet is a storage method that uses a paper wallet or thumb drive to secure the private and public key signatures that allow access to your account. Using the hbar exchange that is most suited to your experience level is imperative to not losing your coins.
Following these instructions will assist the reader in choosing the right exchange based on experience, protecting your hbar coins with a cold storage device or paper wallet and how to transact with peers and internet services. A list of exchanges will eventually be announced and directions for each will be added when available.
INVESTORS: Buying hbars can be risky and should be carefully performed after learning about the best hbar exchanges to use, how to use an hbar wallet and how to transact with peers and internet services. Many users of digital assets have suffered substantial losses by inaccurate use of hot wallets or outright hacks (theft).
It will be critical to a crypto investor’s success to understand the pitfalls and how to store the coins in the process. Ideal exchanges to use will have simple user interfaces, low fees and insured exchange platforms in case of a major hack. The ability to proxy stake one’s coins at a reputable exchange will also allow investors the convenience of insurance-backed hbar coin storage in the process of earning rewards but still being able to spend funds at will.
Discussion: In order to buy hbars on an exchange a digital asset investor will need to understand the use of fiat (e.g./ US dollar) bitcoin, ethereum or even a credit card if it is available to use. The exchanges that will offer hbar trading will be disclosed soon by the Hedera Hashgraph platform and public crypto exchanges in the near future. Also in the coming months, a guide to investors of the listing exchanges and dates for buying hbars will be added to this instructional.
It is important to firmly understand how to actually purchase cryptocurrency like Hashgraph tokens, in the same way it is important to know how to transfer bitcoin and ethereum on exchanges. One of the most important requirements in the use of Hedera tokens is the use of a hot wallet. This is a virtual device, or software program connected to the internet that allows direct and immediate transactions of hbars. This is convenient for most crypto users since the coins remain ready for transaction in rapid market swings or moves.
A hot wallet is usually hosted by an exchange on your behalf. This means that the account you create, for example at Coinbase, will have public and private keys that you will allow Coinbase to manage for you. You will also have those same 2 keys for transactions available in your wallet app. Using an exchange that is financially-insured in case of a major hack or breach of security, leading to the loss of coins, is important to confirm before signing up for an account. Not all exchanges offer this benefit because it is costly and requires a large amount of regulatory compliance.
Funding Account: In order to enter the crypto market of exchanges, a user must first convert their local currency (e.g./ US dollar, Euro, Yuan, etc) into a cryptocurrency equivalent. This process is called ‘onboarding’ and is the most difficult process in the entire economy of digital assets. Exchanges such as Coinbase, have made this process the easiest for new investors though. In the process, they also charge large fees for this process. The reason is because of all the expensive regulatory compliant measures that Coinbase has to take in order to make a financial transaction through legacy systems like banking institutions. More on that later.
If you have never bought cryptocurrency and have access to US dollars you should use a US-based crypto exchange to buy hbars since they will like have the simplest user interfaces. This will initially require a KYC-compliant process though. KYC-Know Your Customer is a requirement for the majority of nations based on national and international banking regulations. This requires a person to upload an ID, which may include a passport, voter identity card or driver’s license in addition to basic address and personal information.
After account creation, funding your account can be performed in several ways. If the hbar exchange allows debit or credit cards, then a transaction will allow conversion of US dollars or Euros into a cryptocurrency. Unfortunately, this conversion will likely have to be into bitcoin, ethereum or an exchange token. The fees have fairly high using credit cards though. An ACH is a bank transfer that can be used to buy hbar on exchanges, but can take anywhere from 1-7 days. The fees will be lower than credit cards. If you want to buy hbar in Euro currency, then a SEPA transfer may also be available through an exchange, such as Kraken. Whatever method you use to buy hbars, and whichever hbar exchange you transfer fiat to crypto, you will eventually enter the digital asset world ready to get those hbars.
US Crypto Exchanges
UK Crypto Exchanges
International Crypto Exchange (all currencies):
Trading Fees: Every transfer of currency and every trade in the cryptocurrency exchange market incurs a cost. At some exchanges fees are incredibly small for trading on exchanges, such as Binance (~0.1%) and some are much larger (Coinbase ~1.4%, Coinmama ~5.5%). Choosing the right exchange to buy hashgraph tokens at the best hbar price in US or any other country will be dependent of your native currency and ability to fulfill the KYC process.
Some exchanges do not allow US residents to transact in fiat to crypto, due to the strict regulatory compliance. Binance is one exchange that may sell hbar on exchange, but will not allow US residents to buy directly with fiat.
Understanding trading fees and finding the optimal balance of user experience with the least amount of charges will help the new digital asset investor to know how to buy hbar in the perfect way.
Transfer Limits: Most exchanges that allow users to onboard from fiat to crypto to buy hbars will likely impose limitations on the total amount of financial transfer per day. For example, at Binance, their is a limit of no more than 2 bitcoin in value (~$10,000) transfer allowed per day. This matches current international banking regulations in order to comply with Anti-Money Laundering (AML) laws. This is a fixed limit imposed in order to stop criminal organizations from sending and receiving crypto in order to divert money from illegal activities.
Transfer limits of hbar or other cryptocurrencies will also require a more thorough KYC-compliant process, where annual income statements, documentation of citizenship or even stating total net worth. This is an intrusive process that exposes a lot of personal information in order to confirm that the person involved with large and/or frequent transfer of hbars is legitimate and not associated with underground dark markets.
Tradeable Cryptocurrencies: Due to the first mover advantage of bitcoin since 2009, this blockchain based digital coin has become the most commonly pegged token with others, such as hashgraph tokens. Unfortunately, this creates a strong correlated pricing action between bitcoin and all its other pegged alternative coins. Buying bitcoin will likely be necessary at most exchanges that accept fiat (USD, Euro,etc) and will be transferred to a bitcoin hot wallet on an exchange at the time of purchase. An investor will need to understand how to use a bitcoin wallet, public and private key address and exchange interface to purchase hbars.
Other currencies that will be required before buying hbar on exchange, may include ethereum or litecoin. These altcoins operate just like bitcoin, but have faster transaction times, making the process on onboarding even easier. For example, bitcoin transaction take 60 minutes on average due to the requirement of at least 6 total confirmations in the network to verify the transfer to an exchange.
Ethereum is faster than bitcoin, near 15 minutes, but requires up to 30 confirmations for a single transaction. Litecoin is the fastest of the three top currencies, with transaction times near 10 minutes with less confirmations. The most important point to understand with choosing a coin to use for an exchange transfer other than speed, is to confirm that the exchange you are using accepts that particular coin.
HBAR FACTS: As a side note, the Hedera Hashgraph token, the hbar, is transferred within 2-7 seconds and needs NO other confirmations in a single transaction. It is completely transferred or settled within seconds and is even more secure in finality than ALL other cryptocurrencies on market. This is why some predict that hbar currency will likely be a top platform coin and will outcompete the majority of other altcoins. It also will charge the lowest fees possible as well (~$0.0007 per transaction).
Customer Support: Choosing the best exchange to buy hbar in US, or hbar in South Korea, will depend on the real time human customer support offered. Many exchanges try to reduce needless human support by making many exchange activities self-sufficient and intuitive. However, there have been many occasions that crypto customers have had major account errors or even account lockouts that need immediate human support. It is recommended to use an exchange in your native language or a supportive language that also allows human contact by email or phone for conflict resolutions and account issues.
Conclusion: Choosing the right exchange to buy hashgraph tokens or hbars in US, Canada, the EU or South Korea will be dependent on multiple factors, including, funding account operability, transfer fees from fiat to crypto, transfer limits per day, what tradeable cryptocurrencies are necessary and human customer support.
When hbar exchanges are finally announced as expected in the summer of 2019, a notification will be sent out to all subscribers. Being ready to make transfers to the appropriate hbar exchanges will be critical to take advantage of the opportunity of early hbar prices in the early trading period.
It is impossible to accurately predict the hbar price in the near or long term, however, being familiar with the process will help an investor be ready for the moment that Hedera Hashgraph finally debuts on the market. It should be an exciting time. Good luck to all.