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The cryptocurrency has been around for some time, but it is safe to say that they made headlines in 2017 with their unprecedented rallies. Here is a guide that tries to buy Bitcoin or any other popular cryptocurrency.
Bitcoin (BTC) was driving the march 00, the largest digital currency in the world through market capitalization. It continued to reach a price of $ 20,000 at the start of January 2018, alone around $ 750 in the same period last year.
Bitcoin and Ether, in reality, were the two main cryptocurrencies, since the latter had reached a price of about $ 1400 in January 2018, marking an even higher increase in absolute prices in percentage terms compared to BTC, given that the year in about $ 10.
And while the market has substantially declined since then, digital currencies such as Bitcoin and Bitcoin Cash remain an attractive field for many retail and institutional investors, as well as for buyers and sellers.
Below we take a look at the most common reasons why people invest in digital currency and cryptocurrency, buy Bitcoin and how you can start buying bitcoins and other digital currencies.
Why invest in cryptocurrencies?
It goes without saying that different people invest for their own reasons and, many of them, have to do with the simple desire to make a profit.
However, there are many other reasons why buyers and sellers, as well as investors, are involved in the cryptocurrency market. Some of the most common reasons include:
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Portfolio diversification
"Never put all the eggs in the same basket" is a saying that fits perfectly into the world of investment. When it comes to diversification, there are many different approaches on which one can go.
Adding cryptocurrencies to your investment portfolio is one of the ways you can balance it. It is also worth noting that the sector is particularly different from traditional ones and could significantly increase the potential for maximizing overall portfolio growth.
While the cryptocurrency market has now entered a bear market and prices are depreciated, the high volatility and the possibility of massive upward gains of 100% are still the reason why many investors buy cryptocurrency in the first place.
Indeed, Bitcoinist has recently compared Bitcoin's performance with three traditional stock exchange companies: Amazon, JD.com and iQiyi. It turns out that Bitcoin dwarfs all in terms of financial growth, outperforming even the most popular FAANG stocks over the years. Another great reason for the purchase of cryptocurrency.
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Buy Cryptocurrency is easier than ever
Regardless of whether you want to start buying Bitcoin and Ether, or any other cryptocurrency, it's easier than ever.
Naturally, with the increase in prices and the increase in cryptocurrencies, companies have started offering a range of different services that provide quick and easy access to the market.
So, now you can buy bitcoins and ether using your credit card, debit card, gift card or you can also buy bitcoins in cash through physical Bitcoin ATMs or electronic money kiosks. However, it is necessary to keep in mind the cryptocurrency exchanges that take commissions and transaction fees, which can vary greatly, especially when using credit or debit cards.
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Increase of adoption
Needless to say, the cryptocurrency market as a whole is still at a very early stage. The above Bitcoin ATMs, which now number over 4,000 worldwide, are still hard to find compared to traditional ATMs.
However, it is worth noting that cryptocurrencies have been around for a relatively short period and their popularity has only recently exploded.
In addition, numerous banks, institutions, countries and even governments have expressed interest in one of the key technologies of Bitcoin components, the blockchain, which suggests that cryptocurrencies are here to provide additional reasons for buying bitcoins.
The most popular cryptocurrencies
What is the most popular cryptocurrency in addition to Bitcoin? Well, there are over 2,000 currently existing cryptocurrencies and their market capitalization rankings can change day by day. There are also many ways you can buy or sell them.
However, in terms of popular cryptocurrency that have demonstrated the maintenance of power, it is safe to say that the major digital currencies by market capitalization are also those that people are most aware of. These include, but are not limited to Bitcoin, Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), Stellar (XLM), EOS (EOS), Bitcoin SV (BSV), Litecoin (LTC), TRON (TRX) ), Cardano (ADA), Monero (XRM), Ethereum Classic (ETC) and others.
How to buy Cryptocurrency on Coinbase
Coinbase is currently the largest cryptocurrency stock exchange based in the United States on the market. It is based in San Francisco.
The purchase of cryptocurrency on the platform is quite simple. The first thing you should do is sign up for a Coinbase account. This will provide you with a place to put your bitcoins and simple payment methods to convert your local currency such as USD or EUR into a bank account in or out of Bitcoin or any other supported cryptocurrency. You can also embed a debit or credit card in this process for credit or debit.
Once you've created and verified your account, you'll need to connect your bank account and then a credit card, debit or debit card. There are some verification steps that you should go through in order to use your account completely using a credit card.
Coinbase allows you to connect your bank account using your credit or debit card, which is very convenient if you want to buy or sell with credit or debit. This allows you to purchase digital currencies transparently with your bank account and use them with a credit or debit card, for example.
Once all of the above is done and you have spent all the tedious administrative work of the bank account, credit card, debit cards, gift cards, wallet hardware, wallet address, your private key, gift cards, you can buy or sell cryptocurrency without problems. The platform will also show real-time currency exchange rates of Bitcoin, USD and EUR, depending on the currency you prefer.
How to buy Cryptocurrency on Binance
Binance is an exchange of cryptocurrency. Indeed, it is the largest in the world by means of traded volumes and has dominated the market for the time being.
To exchange cryptocurrency on Binance, you must first deposit them in your cryptocurrency portfolio designated as one of many hardware portfolios with a private key. The exchange supports a wide range of different digital resources, so you do not have to worry about compatibility.
While the exchange mainly supports digital activities, it also allows fiat-to-crypto trading in selected regions. Bitcoinist reported in October that Binance opened its first fiat-to-crypt exchange in Uganda. The company also collaborated with a Southeast Asian venture capital giant, Vertex Ventures, to open a fiat-to-crypto exchange in Singapore.
If Binance does not support fiat-to-crypto trading in your region, you can withdraw bitcoins, Litecoin, Ethereum etc. From your Coinbase account and then pay into your Binance account. Once you've done this, you can start exchanging them for different types of cryptocurrencies.
The way it works is quite simple. First, you should choose the cryptocurrency that you want to trade and then see the available trading pairs (for example, BTC / ETH).
For example, if you want to buy Ethereum, you could do it with Bitcoin, Litecoin and a wide range of different digital resources. The platform will show the current exchange rates for the selected cryptocurrency pair and will execute the transaction when the price target is reached.
Binance has also released its own in-platform token called Binance Coin with the BNB ticker 00. Users are encouraged to purchase advertisements that use it to pay any fees on the platform at a certain discount. For example, in the first year after the issuance of the currency, users received a 50% discount on transaction fees if paid in BNB.
How to buy Cryptocurrency on Kraken
Kraken is another cryptocurrency bag used to buy or sell cryptocurrency. Unlike Binance, however, it allows the financing of your account via fiat coins. So, the first thing you should do is open an account.
Once you're done, you need to go to the Kraken funding page and select the deposit option and go to the USD page (or EUR for Europeans). If you have not already done so, you must accept the USD Deposit Terms of Service.
After that, you should select the option to make a US bank transfer to copy the details of your wire transfer in USD.
The next step will depend on the bank you are using for bank transfer. But essentially you should provide the information displayed on your Kraken deposit to your bank for bank transfer. The bank transfer will then transfer the credit on a credit card or funds directly from your bank transfer account to your USD account on Kraken.
Once you have completed bank transfers, you can buy or sell cryptocurrency, buy bitcoins and trade on the platform. It's a cryptocurrency exchange just like Binance and you should select the trading pair of buyers and sellers you want to interact with.
The exchange rates are updated in real time based on current market conditions, displaying the volume of the order portfolio with buyers and sellers, as well as bank transfers and related commissions.
Note: Cryptocurrency and withdrawals of legal actions generally depend on the level of verification of the identity you provide for the exchange. The more documents you send, the greater the amount you can withdraw each day. Binance, for example, allows withdrawals of up to 3 BTC per day for the most basic ID verification level.
How to buy Cryptocurrency with cash
The purchase of bitcoins with cash has some distinct advantages over the purchase on an exchange of cryptocurrency or bank transfers.
For once, cash purchases are obviously much more private. Unlike the use of a regular cryptocurrency exchange for the purchase of bitcoins or the learning of how to buy cryptocurrencies by bank transfer, it will not be necessary to disclose personal information and present a wide range of documents.
In addition, cash purchases are faster for those of you who are first-time buyers who learn to buy cryptocurrencies – or have not set up an encrypted address or other payment methods like a wire transfer.
A wire transfer could take up to 3 business days, to say the least. In addition, verifying your account, assuming that nothing goes wrong, can take up to 3 weeks on different platforms to transfer your credit. A wire transfer could make you lose a significant amount of money, especially at times when the market is volatile and you wish to transfer credit using these payment methods.
The peer-to-peer cash transactions or OTC (over the counter) trades, in which the cryptocurrency is not sold on a public exchange (and therefore have a minimal or no impact on the price), are payment methods that can be carried out in various ways.
For one, you could have a trusted friend or your peer who has experience on how to buy cryptocurrencies and is willing to sell them. Since digital resources are becoming increasingly popular, it is possible to participate in several meetups and crypto conferences where you can meet local people interested in buying and selling cryptocurrencies.
All you have to do is pay the person the agreed amount (or send it to him via your bank account) and receive the cryptocurrency on the address of your selected postal crypt with a private key or through other payment methods . If you meet in person, you can scan the QR code on your cryptographic wallet and send digital resources directly as a payment method.
Another popular payment method for OTC trading with cash is through the LocalBitcoins website. The P2P trading platform has gained a reputation over the years, connecting buyers and sellers by providing escrow services and other payment methods.
All you need to do is visit the website, select your region, as well as the designated amount with which you want to transact, and wait for a seller to appear if there is not one already. So, you can organize all the further details through messaging and discussion of payment methods to buy bitcoins.
Purchase of cryptocurrency using a Bitcoin ATM
The use of a Bitcoin ATM is another option to buy Bitcoins in cash (2-way machines also allow for sale), provided that in the region in which you reside there is such a machine. In fact, there are over 4,000 machines worldwide.
Usually they are quite simple: you should put the money and provide the QR code for the device to be analyzed, then automatically send the amount in the chosen payment method. This is especially easy for those who learn how to buy cryptocurrency.
People in Switzerland, for example, can buy Bitcoins from almost all the railway stations in the country. Another sign of how easy it is to buy Bitcoins in cash is the thousands of French brick and mortar tobacco shops that will soon sell Bitcoin coupons as of January 1, 2019.
How to buy Cryptocurrency with Skrill
Skrill is a well-known international processor for payments and payment methods. There are some different platforms that allow you to use Skrill to deposit money and buy cryptocurrency. One of these is BitPanda. The main advantage of the trading platform is that it has quite low transaction fees and accepts Skrill. Virwox is another popular trading platform that accepts Skrill.
How to buy Cryptocurrency with PayPal
There are several ways to purchase encryption with the PayPal payment method. In any case, you should find a platform that supports this payment processor.
One platform you can use is LocalBitcoins. However, it is essentially the same thing that if you buy with cash, just deposit your money through your PayPal account. Another payment method platform you can use is Paxful, which is basically the smaller version of LocalBitcoins.
Non-US users can use the eToro trading platform. There are some important things to consider when we consider how eToro is different from the normal exchanges of cryptocurrencies, which allow you to buy crypto. eToro does not allow you to convert your Bitcoin into any other cryptocurrency or to send it to someone else: you could only change them into legal currencies. In other words, this is more for investments and portfolio construction, rather than for trading.
How to buy Cryptocurrency with Hodl Hodl
Hodl Hodl is a peer-to-peer (P2P) cryptocurrency exchange, which allows buyers or sellers to operate directly. It does not hold the funds of the user, but blocks it in a multisig deposit account that should minimize the risks associated with the theft of cryptocurrency.
Furthermore, since the platform does not contain funds, it is not necessary to go through complex KYC / AML compliance procedures.
To buy bitcoins, all you need to do is enter your position, as well as the amount you wish to purchase. You can also choose to pay in cash, wire transfer, cryptocurrency or online.
The exchange maintains a user profile so you can see the transaction history that the person you want to transact with has done in the past.
How to buy Cryptocurrency with Square Cash App
Using the Square Cash app is perhaps one of the most popular and convenient payment methods to buy bitcoins in the United States. You should make sure you have money deposited in advance. You can do this by adding it directly to your account or you can be sent by someone.
Once you've managed this, you should open the Cash app and select the Cash Card. Scroll to the left and you should be able to see the Bitcoin symbol. You will immediately see the "Buy" button and all you have to do is specify the amount and confirm the transaction with your password.
How to buy Cryptocurrency anonymously
There are several ways to buy cryptocurrency without having to use any type of identification document in the process.
- LocalBitcoins
This is probably the most popular way to buy Bitcoin and learn how to buy cryptocurrencies and buy crypto in cash and in person. As explained above, you can use the platform to find someone in your area who is willing to sell bitcoins to you after meeting him in a physical location. (Of course, this involves the usual risks of physical and non-contractual relationships and you need to make sure you trust the seller.)
At the same time, however, while using the platform when learning how to purchase cryptocurrency, you can use an alias email address to completely hide your identity. However, most people would not want to do business with anonymous buyers and, unless you are willing to pay cash in person, you may have some difficulties, especially when learning to buy cryptocurrency.
- Bitcoin ATM
The purchase of cryptocurrency or the purchase of bitcoins through a Bitcoin ATM is another way to remain completely anonymous. You should not provide any type of identification document for any payment method. Please note, however, that some ATMs have certain limits, beyond which they may require the telephone number to be entered.
- Use a prepaid card
Another way to buy cryptocurrency without having to show your identity is to buy prepaid basic cards from any supermarket or convenience store. There are some platforms like Virwox, which accept them and you can use them to buy bitcoins or buy crypto in another form.
Conclusion
The purchase of cryptocurrency has become easier than ever. However, there are some factors you should consider when selecting the best payment method for you.
One of the most important things you should consider when investing in cryptocurrency or buying Bitcoin is the platform you have chosen. There are several considerations to consider, such as transaction fees, credit and debit card support, privacy, bank or exchange transfers, payment methods to buy digital goods, support for popular cryptocurrency and other similar ones.
After purchasing cryptocurrency, you need to find a secure storage solution like you would with large amounts of legal currencies.
There are several cryptocurrency portfolio solutions that you can use with a wallet address and a private key. Depending on whether you want to keep your digital assets for a longer period of time, or if you want to make daily transactions with various payment methods, you can choose between offline hardware portfolios (where you control your private keys) and / or online based on cryptocurrency that can be both custodial and non-custodial.
