How to Buy Cryptocurrency

-
buy-cryptos
Photo by Thought Catalog on Unsplash
Buying cryptocurrency is super easy! Maybe once upon a time it was a complicated and hard process, but now you have many fast and easy ways available to buy cryptos. Let me share with you the 3 most common ways to buy cryptocurrencies.
  1. Through Cryptocurrency Exchanges
  2. Directly From Cryptocurrencies Users
  3. Through Bitcoin ATM
Before diving into the details, lets see a glimpse of what you need to know, and what you have to get ready before buying cryptocurrency.

What you need to know before buying cryptocurrency


  • Cryptocurrency Wallet: Crypto wallet is a piece of software/app or hardware that you can use to store and manage cryptocurrencies. I would suggest you should get some basic knowledge about crypto wallets before buying crypots. You can check what is cryptocurrency wallet to get some basic information about crypto wallets.
  • Cryptocurrency Exchange: Crypto exchanges provide service for buying and selling cryptocurrencies. My second recommendation is to know about crypto exchanges. Different exchanges provide different services like fiat-to-crypto or crypto-to-crypto. They also have different types of payment methods and different terms and conditions. Also check for your desired cryptocurrencies, if it is available in the exchange, not all the cryptocurrencies are listed in on every exchange. You can check what is cryptocurrency exchange to get more info.
  • Type of Cryptocurrency: Most people know only about Bitcoin, Ethereum and a few more cryptocurrencies, but in reality there are thousands of cryptos available in the market today. Before buying you have to check and choose which cryptocurrency you want to buy. Every currency has different price and market value. You should have some knowledge about your desired crypto before buying it.
  • Methods of payment: When you are buying cryptocurrency through the exchanges or from crypto users, there are many ways to pay for it. For example, paying through credit card, debit card, PayPal, cash or some other methods. You should know if the exchange you are going to use will accept your preferred method of payment or not.

3 Most Common Ways to Buy Cryptocurrencies

1. How to Buy Cryptocurrency Through Exchange

To buy or sell cryptocurrency through exchange, you will have to go through a few steps process, I will explain it in a bit but before let me explain there are two type of exchanges exist:
  • Fiat to Crypto: In this type of exchange you can buy cryptocurrencies in exchange for Fiat money. Coinbase is one example of this type of exchange. You can buy BTC,BCH,LTC and ETH and many more in coinbase exchange.
  • Crypto to Crypto: This type of  exchanges helps you to exchange crypto like BTC, ETH, BCH and many more with other cryptocurrencies. Biannace is one of the famous examples of crypto-to-crypto exchange.
Now you know the different services provided by exchanges, You can select which type exchange will work for you. If you are going to buy crypto by using your credit card, debit card, PayPal etc, you have to choose fiat to crypto exchanges. Otherwise you can go for crypto to crypto exchanges, if you just want to exchange one type of crypto with another. For example, to exchange bitcoin with ethereum.

Steps to Buy Cryptocurrency Through Cryptocurrency Exchange
  • Select the cryptocurrency exchange
  • Open the exchange website or download the app
  • Create an account by Providing the required information for registration, like user name, email id, phone Number, etc.
  • Verify your identity, this step may require your passport or national ID card number, or copy of your passport or ID Card. Please check the requirements on the exchanges website.
  • Once your account is verified, Deposit some funds to your account with dollars or euros or any currency that you are using.
  • Select the type of cryptocurrencies you want to buy.
  • Select the quantity of cryptos
  • Select the method of payment .
  • And that’s it. You bought it!

2. How to Buy Cryptocurrency Directly From Crypto Users 

As I explained you can buy cryptocurrency from crypto exchange. But crypto exchanges are centralized and run by some organization. Which means you will have to follow their terms and conditions. You will have to provide your identification and fee they will charge for each transaction you make. So if you don't want to share your identity and also don't want to pay additional fees to crypto exchange then you have to buy crypto directly from crypto users.

Now the question is, how you will find crypto users who are willing to sell their crypto? And the answer is P2P(Peer-to-Peer) Exchanges.

P2P exchange provides a platform to crypto users to sell and buy cryptocurrencies directly from one another. 

The sellers make a listing for cryptocurrencies they wish to sell along with all the information like the price, method of payment etc. The buyers will see the listing and will choose the one which suits him, they make contact and close the deal. There is also a transition fee but far less than the centralized exchanges.

Steps to Buy Cryptocurrency Directly From Crypto Users
  • Create an account in P2P exchange.
  • Check listings from sellers, Choose the list that suits you.
  • Check the payment method.
  • Check the seller history and reviews
  • Provide the required details for listing and submit your request.
  • If your request is accepted. The amount of cryptocurrency will be sent to the escrow. Escrow protects both the buyers and seller from fraud. When the terms and conditions are met the cryptocurrency will be released to the buyer, otherwise it will be sent back to the seller.
  • Sent payment to the seller according to the payment method the seller mentioned.
  • Once the seller receives and confirms the method, Escrow will release and and send cryptocurrency to you.

3. How to Buy Cryptocurrency Through Bitcoin ATM

Bitcoin ATM is The easiest way to buy cryptocurrencies. If it is available in your city, you just need to go to the ATM, provide the required information, insert the cash and you will receive crypto in your wallet instantly. Unfortunately Bitcoin ATM is not available everywhere.
Steps to Buy Cryptocurrency Through Bitcoin ATM
  • Search for the location of Bitcoin ATM in your city
  • Go to the ATM and provide the required information. Some ATM may require you to identify your identity and ask for your phone number.
  • You will receive a text message with code, enter the code into the ATM
  • Enter your cryptocurrency wallet address . If you don't have a crypto wallet, the ATM will create one for you.
  • Insert the cash into the Bitcoin ATM.
  • ATM will transfer cryptocurrency to your crypto wallet.

Comments

  1. Vancouver BitcoinDecember 29, 2020 at 9:44 PM

    You have shared here great content about cryptocurrencies. It is a really beneficial and instructive article for everyone. Keep sharing this kind of articles, Thank you. Buy bitcoins Canada

    ReplyDelete

Post a Comment

Popular posts from this blog

What is Cryptocurrency in Simple Words

-
Image
What is Cryptocurrency ? Cryptocurrency is a digital or virtual currency that can be used online in exchange for goods and services.    In other words you can use cryptocurrencies like other currencies to buy or sell things, unlike other currencies it is not physical but digital or virtual. In simple words "Cryptocurrency is a new form of digital money ". Cryptocurrency uses cryptography to provide secure online transactions, that's why it is called cryptocurrency. Cryptography is a technology that keeps information safe and hidden from the attackers. Cryptocurrency uses blockchain technology which is decentralized, secure and spread across many computers, that manage and record the transactions of cryptocurrencies. Blockchain is a decentralized and distributed databases system. it is a new way to share data and make transactions more secure, transparent and cheaper than before. So now you know what is cryptocurrency , it is
Read more

What is Cryptocurrency Wallet

-
Image
Photo by  David Shares  on  Unsplash Cryptocurrency Wallet is a piece of software or hardware that you can use to store and manage your cryptocurrencies. Most people have misunderstandings about crypto wallets. They think your cryptocurrencies are sorted in your crypto wallet, but as I mentioned, you can use crypto wallets to store and manage your crypto currency. But It doesn’t mean that you store your cryptocurrencies in your wallet. Got confused? Let me make it clear. Your crypto currency has no physical form, it's just a unique record which is stored on a blockchain database, and blockchain database is stored on decentralized and distributed networks of computers. So When it is stored on thousands of computers across the world, then how is it possible for you to store your cryptos in your wallet? In reality you only store public and private keys in your wallet. Those keys make you the owner of all the cryptocurrencies which are associated with it. you can use those ke
Read more

What is Cryptocurrency Exchange

-
Image
Photo by  Austin Distel  on  Unsplash Cryptocurrency exchange is a platform where you can buy and sell cryptocurrencies in exchange for fiat money or other cryptocurrencies. In simple words, cryptocurrency exchanges provide service for buying, selling and exchanging   cryptocurrencies . The world of crypto exchanges is extremely exciting, million of transitions are happening each day. people buying, selling and exchanging cryptocurrencies either for fiat money or for other cryptocurrenies.   If you are interested to invest in cryptos,  you should have some  information about exchanges so you will not waste your time on the wrong exchange. What You Should  Know About Cryptocurrency Exchanges Fiat to Crypto: This type of exchange service helps you to buy cryptocurrencies in exchange for Fiat money ex: Dollars, Euros, Pounds, Yen etc. You can use your credit card, debit card, online banking system or any other method of payment to buy crypto on this type of exchanges.  Coinbas
Read more