How to buy Qtum online
This guide takes you through the basics of Qtum and what makes it different from the competition. Discover the purpose of QTUM crypto and the most important things for you to think about before you invest.
Compare where to buy Qtum, and open an account
As far as where to buy QTUM crypto online, you can visit one of the brokers below and start trading. We’ve assessed all the top brokers to help you find the best platform for you. If you want to learn more about QTUM first, keep reading to find out how it all works.
What is Qtum?
Qtum is a platform for businesses to build on the blockchain. It provides a framework for developing apps that have the speed and scale that any big business needs to run its operations. By creating a platform that addresses the needs of those businesses, Qtum wants to be at the centre of a new wave of ventures launched on blockchain technology.
The QTUM cryptocurrency is a way of paying to create things on the Qtum platform. Creating a smart contract requires QTUM, and it can be staked can stake it to help build on the platform as well. Qtum runs a lottery system to offer rewards to anyone who stakes coins in support of the platform and the more you hold, the greater the chance of winning rewards.
Formed in Singapore in 2016, Qtum is particularly focused on breaking into the Chinese market. Its founder, Danny Lai, previously worked at Alibaba, while many of the investors who backed Qtum from the beginning are based in China.
How does Qtum work?
Qtum works by building on existing blockchain technology to scale it up for business use. In particular, this means combining Ethereum’s smart contract capability with Bitcoin’s secure payments system. Qtum works like a translator in the middle, so that these two very different systems can communicate with each other.
While it bases its payments system on the Bitcoin blockchain, the main difference is that Qtum has replaced the ‘mining’ process that makes Bitcoin so energy-intensive. Instead, the QTUM token is used to approve new transactions, so it can work much faster without requiring massive amounts of hardware to run.
How to buy Qtum online – a step-by-step guide
Step 1. Find an exchange
A cryptocurrency exchange is the best place to buy QTUM coin in the UK and elsewhere. However, because it’s a small-cap cryptocurrency at the moment, you might only be able to find it on a handful of exchanges.
Here are two of the top exchanges you can try:
- Binance: One of the biggest and most popular cryptocurrency exchanges, Binance supports hundreds of cryptocurrencies. Open an account now >
- ChangeNOW: ChangeNOW is an exchange that supports hundreds of cryptocurrencies and offers many thousands of different crypto pairs, so you can trade your coins directly with another cryptocurrency. Sign up for ChangeNOW >
Step 2. Sign up and fund your account
When you’ve picked an exchange it will make you sign up before you can start trading. The only thing to note is you’ll almost certainly have to verify your account to complete the sign up process. This isn’t particularly difficult, but you’ll need to have a form of photo ID, like a passport, on hand.
Step 3. Purchase
Now that your account is all set up, it’s time to make your first trade. Remember to change your cash into Bitcoin (or another cryptocurrency) first. Then look for the relevant price – such as QTUM/BTC – and execute the trade.
Step 4. (Optional) Get a suitable wallet
Most top exchanges store your coins for you. If you are a casual investor or are only holding a few, inexpensive, coins, you are probably fine to leave them on the exchange. If you want extra security or are going to hold a lot of cryptocurrency on different exchanges, you can get your own wallet to store your coins.
There are lots of wallets available depending on your exact needs, you can get mobile wallets, online wallets, or completely offline hardware wallets. Here are a couple of options:
- Trezor: The first ever hardware wallet, Trezor stores your coins completely offline. This means that even if you attached it to an infected computer your coins would be safe. Sign up for Trezor now >
- Guarda Wallet: An online wallet that has desktop, mobile, and web options. Guarda is a non-custodial wallet, which means it doesn’t store your private key. It can store a wide range of the most popular cryptocurrencies. Get a Guarda Wallet now >
How to trade Qtum – a step-by-step guide
Step 1. Find a broker
Trading QTUM means finding a broker with low fees and lots of trading options. As is the case for exchanges, QTUM is difficult to find on broker platforms at the moment. If you want to trade QTUM, have a look at eToro and Plus500, two of the top brokers who are most likely to offer it.
Step 2. Deposit money
Most brokers accept fiat currency, so you can deposit your cash and get trading straight away. If you plan on lots of trading, remember to pick a broker with low fees. Trading fees can be a real drain on your funds if you’re an active trader.
Step 3. Decide how you’d like to trade
There are all sorts of different ways to trade and more are being added all the time. One of the most popular is trading contracts for difference (CFDs). With CFDs you don’t actually own the coin but speculate whether it’s going to go up or down. This is a great way of getting exposure to coins that might be too expensive for you, but it’s certainly an option for how to trade QTUM as well.
Step 4. Start trading
Now that you’ve decided how to trade, all that’s left is to get started! If you’re new to cryptocurrency trading or just want to learn more about how it all works, most brokers offer demo accounts where you can trade without the risk of losing money.
When you trade you have two options: to go long or go short. This just depends on how you feel about QTUM. If you feel good and think it’s going to go up, you can take a long position. If you don’t, you can ‘short’ it by backing it to fall. You can learn more about how to short an asset in our short selling guide.
If you’re a more experienced trader looking for new ways to trade, you can think about using leverage. This is a way of trading that means you only put up a percentage of the overall trade value and your broker puts up the rest. By trading with leverage you can win big, but also suffer big losses if the market moves against you. Think carefully before deciding to trade with leverage and we certainly don’t recommend it for beginners.
If you’re still not sure whether to get involved with QTUM, don’t worry. It’s always a good idea to take a bit of extra time before you decide to invest. Below we’ve listed some of QTUM’s pros and cons, as well as some more questions you might want to think about.
- You can earn rewards of up to 7% a year by storing your coins in Qtum’s wallet
- Spins off from existing, well-established technology rather than starting from scratch
- Backed by an impressive list of names and has a clear plan for growth in China
- Qtum is offering significant sums of money to entice new developers in to grow the platform
- Trying to become the blockchain that achieves mass appeal is a very competitive field
- The rewards available for staking your coins will diminish over time
Along with those pros and cons, here are three more things to think about before you invest in Qtum.
1. Is now a good time to buy Qtum?
Whether you should get QTUM now depends on what you want to achieve. If you want to hold for the long term, you should think about how it holds up to competitors like Polkadot and Algorand, that are also scale up the blockchain’s possible uses. In the short run, if you want to QTUM tokens to shape Qtum’s future or earn interest in the shape of rewards, it could be a good time to make an entry.
New developments in cryptocurrency and blockchain happen all the time. Ethereum, for example, is rolling out an update that could add even more competition from a big name platform. You can follow all the latest market analysis on Qtum and the cryptocurrency community below:
2. What problem does Qtum solve, and what are the coin’s investment prospects?
Qtum makes it possible for businesses to run large scale operations on the blockchain. It’s created a secure blockchain that can build apps and process transactions without needing huge amounts of computer power. This solves the problems that have prevented early generation blockchains, like Bitcoin and Ethereum, from being practical places for business use.
QTUM’s prospects depend on a few factors, most notably its performance versus the competition and whether it can get existing businesses to move onto the Qtum platform. Although the QTUM coin has value on its own as a way of earning rewards, its long term growth depends on the platform’s development, and Qtum is targeting China in particular to achieve that growth.
If you want to invest for the long term, you should track the latest developments on Qtum and look for signs of any new businesses joining the platform. You can be the first to know about all the latest Qtum news and developments using the links below:
$20 million worth of Qtum (QTUM) locked for DeFi growth
3. Do you want to hold Qtum for the long term?
If you believe in Qtum’s long term prospects versus the competition then you should think about holding it for the long term. An alternative strategy is to hold QTUM to earn rewards each time a new block is added and benefit while the platform grows.
Considerations for a long term investment strategy
Long-term investors should think about how they want to store their coins. You can choose to get your own wallet or use Qtum’s wallet to store the coins and earn rewards. Ultimately, though, if you’re convinced of Qtum’s long term prospects you should go ahead, find a top exchange, and sign up now.
Considerations for a short term trading strategy
Short-term traders don’t need to worry about Qtum’s growth prospects. If you want to buy and sell QTUM coin quickly, the most important thing is find a broker with low fees. You can also think about learning a bit more about how to read price charts to try to predict how QTUM will perform.