Want to know how to purchase cryptocurrency? Luckily, there are now multiple ways to buy crypto, making the process easier than ever before. Here we will go through some of the most popular ways to purchase cryptocurrency.
Buying is easier than ever before
Whether you are buying for the first time or have done so multiple times before, it is now easier than ever to purchase cryptocurrency. Regardless of what coin you want to buy, there are many options available – all with different benefits.
Naturally, as prices increase, buying cryptocurrencies becomes more popular and companies start to offer different services that provide quick and easy access to the market. Many services now allow you to use your credit card, debit card, gift cards, and even physical Bitcoin ATMs.
The trick is to find the best option for you. For example, some exchanges may charge a transaction fee for every purchase, but they might also be the easiest way for you to purchase crypto if you live far away from any Bitcoin ATMs. All of these facts need to be taken into consideration before purchasing any sort of cryptocurrency.
How to purchase cryptocurrency
One of the most well-known ways to buy cryptocurrency is through an exchange. An exchange is an online service that provides users with the ability to exchange, buy, or sell cryptos such as Bitcoin using other digital assets and fiat currencies.
There are three popular and common types of exchanges for crypto. The first and most popular type of exchange is a centralised exchange, or CEX for short. The second type is a decentralised exchange, known as a DEX. The final type of exchange is a hybrid exchange, one that implements features that are typical of both a centralised and decentralised exchange.
To purchase cryptocurrency on an exchange, users either transfer their existing crypto to their account on an exchange or use the exchange to buy crypto with fiat currency. However, note that not all exchanges provide the option to buy cryptocurrency with fiat currency.
The exchange then holds on to the cryptocurrency and allows the user to watch the prices of other cryptocurrencies available. Users can place their buy or sell orders with their desired trade and the exchange finds a seller or buyer to match this trade. Finally, the exchange completes the transaction, and the cryptocurrency is owned by you.
Another popular way to purchase cryptocurrency is through peer-to-peer trading. This type of trading refers to buyers and sellers completing transactions directly with each other. Since buyers and sellers alike are actively searching for people to match their order, a third party is not needed in peer-to-peer cryptocurrency trading.
Peer-to-peer trading provides much more privacy as no third party is involved. All communication between both parties is kept private and there is no way for anyone else to get hold of this information.
Only when the order has been submitted and is ready to be added to the blockchain does it become public. Since the trade will appear on the blockchain, no identifying information is used. Another great reason to use peer-to-peer trading is you can look for better prices, as certain prices may be fixed on exchanges.
Another way to purchase cryptocurrency is with a Bitcoin ATM. As the name suggests, a Bitcoin ATM is not dissimilar to a regular cash ATM – except they allow you to withdraw crypto rather than cash.
There are now over 4,000 Bitcoin ATMs worldwide and they are pretty straightforward to use. If you are looking for a quick and simple way to buy Bitcoin on the move, a Bitcoin ATM is the ideal place for you. However, there are certain fees associated when using one. These fees are usually higher than using an exchange, but ATMs can be more convenient.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.