How to Buy Enjin Coin in the UK – Beginner’s Guide (2023)
In the world of cryptocurrencies, Enjin Coin has been making waves for its unique focus on the gaming industry. As a blockchain-based platform, it offers a variety of tools and products to game developers, enabling them to create, manage, and trade in-game assets. If you’re interested in investing in this promising digital asset in the UK in 2023, this beginner’s guide will walk you through the process step by step. However, before we dive into buying Enjin Coin, let’s briefly explore the foundational step – acquiring Bitcoin, which will serve as a gateway to purchasing Enjin Coin.
Buying Bitcoin in the UK
Bitcoin is often the first cryptocurrency people buy before diversifying into other digital assets, such as Enjin Coin. Here’s how to buy Bitcoin in the UK.
Choose a Reliable Cryptocurrency Exchange:
When it comes to buying Bitcoin, you need to select a reputable cryptocurrency exchange. Some of the best sites to buy Bitcoin in the UK include Binance, Coinbase, Kraken, and Bitstamp. Ensure the exchange you choose is user-friendly and provides strong security measures to protect your investment.
Create an Account:
After selecting an exchange, sign up for an account. You’ll need to provide some personal information and go through a verification process. This ensures compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Once your account is set up, you’ll need to deposit funds to buy Bitcoin. Most exchanges accept deposits via bank transfers, debit/credit cards, or other cryptocurrencies. Choose the funding option that suits you best.
Place an Order:
With your funds in your exchange account, you can now place an order to buy Bitcoin. You can either make a market order (buy at the current market price) or a limit order (set a specific price at which you want to buy).
Secure a Wallet:
While exchanges provide wallets, it’s generally safer to transfer your Bitcoin to a personal wallet for added security. Options include hardware wallets, software wallets, and mobile wallets.
Buying Enjin Coin with Bitcoin
Now that you have acquired Bitcoin, you can use it to buy Enjin Coin online. Follow these steps:
Choose a Crypto Exchange:
Select a cryptocurrency exchange that offers Enjin Coin (ENJ) trading pairs with Bitcoin. Exchanges like Binance, Bittrex, and KuCoin often support ENJ trading.
Create an Account:
Just as with the Bitcoin purchase, you’ll need to create an account on the chosen exchange. Make sure to verify your identity following the exchange’s KYC procedures.
Transfer the Bitcoin you purchased earlier into your exchange wallet.
Place an Order:
Navigate to the trading section and find the ENJ/BTC trading pair. Place a buy order for Enjin Coin. You can choose a market order or a limit order, just like with Bitcoin.
Secure a Wallet:
While your Enjin Coins will initially be stored in the exchange wallet, it’s highly recommended to transfer them to a secure wallet designed to hold ENJ specifically. Options include the Enjin Wallet (official wallet of the Enjin platform), hardware wallets that support ENJ, or other compatible wallets.
HODL or Trade:
Now that you own Enjin Coins, you can choose to HODL (hold onto them as a long-term investment) or trade them for potential profit.
Ensuring Security and Best Practices
As you embark on your cryptocurrency investment journey, it’s crucial to keep security in mind. Here are some essential tips to ensure the safety of your Bitcoin and Enjin Coin holdings:
Use Two-Factor Authentication (2FA): Enable 2FA for your exchange accounts and wallets to add an extra layer of security. This typically involves receiving a verification code on your mobile device when logging in.
Beware of Phishing Scams: Be cautious of phishing attempts, where malicious actors try to impersonate legitimate platforms. Always double-check the website’s URL and only use official links to access your accounts.
Stay Informed: Keep up with the latest news and developments in the cryptocurrency space. Staying informed about market trends and potential security threats is vital.
Backup Your Wallet: If you’re using a software wallet, make sure to back up your private keys or recovery seed phrase. Store this information in a secure location. Losing access to your wallet can result in losing your cryptocurrencies.
Diversify Your Investments: While you’re invest in Enjin Coin and Bitcoin, consider diversifying your portfolio across different cryptocurrencies. Diversification can help mitigate risk.
Regularly Update Software: Keep your wallet and any other software you use up to date. Updates often include security patches that protect you from vulnerabilities.
Avoid Public Wi-Fi: When accessing your exchange accounts or making transactions, avoid using public Wi-Fi networks, which may not be secure. Use a private and trusted internet connection.
In the UK, cryptocurrency transactions can have tax implications. It’s essential to be aware of your tax obligations:
Capital Gains Tax (CGT): If you make a profit when selling your Enjin Coin or Bitcoin, you may be subject to CGT. However, there is an annual tax-free allowance, so not all gains may be taxable.
Income Tax: If you are actively trading or mining cryptocurrencies as a business, you may be liable for income tax on your profits.
Keep Records: Maintain detailed records of your cryptocurrency transactions, including purchase and sale dates, amounts, and prices. These records will be invaluable for calculating your tax liability.
Consult a Tax Professional: Given the complexity of cryptocurrency taxation, it’s advisable to consult with a tax professional who specializes in cryptocurrency tax matters.
Investing in cryptocurrencies like Enjin Coin and Bitcoin can be an exciting and potentially rewarding endeavor. However, it’s essential to approach it with caution and awareness. The cryptocurrency market is highly volatile, and prices can fluctuate significantly in a short period.
Always conduct thorough research before investing, only invest what you can afford to lose, and consider your long-term goals. While this guide provides a solid foundation for acquiring Enjin Coin and Bitcoin in the UK, remember that the crypto landscape is continually evolving, so stay informed and adapt your strategies accordingly.
Cryptocurrency investments can offer significant opportunities, but they also come with risks. By following the best practices outlined in this guide, you’ll be better equipped to navigate the world of digital assets and potentially grow your investment portfolio. Happy investing, and may your cryptocurrency journey be a successful one!