How to Buy Cryptocurrency
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- Through Cryptocurrency Exchanges
- Directly From Cryptocurrencies Users
- Through Bitcoin ATM
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 ExchangeTo 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.
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 UsersAs 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 ATMBitcoin 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.