Alternative Methods to Buying CryptocurrencySo, you are interested in cryptocurrency and decided to give it a try. However, you do not know where to begin because of the options available that make it hard for you to decide. Aside from that, there are a lot of considerations you need to make before buying cryptocurrency.
You should first know that cryptocurrency exchanges are popular these days because of the Bitcoin and Ethereum digital assets. Those who have cryptocurrency can exchange with each other and fiat currencies like USD, GBP, and EUR. These facilities are highly regarded and have brought a new level of modernization that was not achieved by the established global financial system.
Do not worry because there are a lot of ways on how you can buy cryptocurrency.
From Cryptocurrency Exchanges
You are allowed to exchange fiat currencies to cryptocurrency when you buy them from cryptocurrency exchanges. It is the most common way that people go for when they want to buy cryptocurrency. Normally, newbies use this option because exchange websites are easy to use and setting up is quick.
The payment method is normally Paypal, bank transfer, or credit card. If you want to use a credit card, here is a list of Money Under 30’s top rewards credit cards. Using a rewards credit card to buy cryptocurrency has the potential to earn quite a large sum of rewards points, especially considering the current value of 1 bitcoin.
You can choose from a lot of exchanges, and each one has its own level of security that accepts different payment methods.
If you want to buy well-known cryptocurrencies, the most popular digital exchange is CoinBase. Here, you can buy Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. You will find it easy to use Coinbase and it is widely trusted. Occasionally, it goes offline when there is a trading frenzy. The Coinbase app is downloadable to your phone or create an account with them. When you are paying, the fees are based on the payment method you choose, so make sure to check before paying. Credit card fees are 3.75%.
Buying Cryptocurrency Peer to Peer & with Cash
Peer to peer is one of the simplest ways to purchase cryptocurrency because they remove the need for a middleman. It lets users purchase and sell cryptocurrency directly from each other. When you do this, you do not have to pay for any extra fees, you can use cash, gold or silver, and it is not mandatory to provide your ID.
Buying bitcoin using cash has a couple of advantages in comparison to buying them on cryptocurrency exchanges or through bank transfers. First of all, cash purchases because you do not have to give personal information and submit documents. Furthermore, buying cryptocurrency with cash are faster for first-time buyers or have not set up a crypto wallet address. Wire transfers could take 3 business days, and account verification when you use cryptocurrency exchanges can take up 21 days if everything is fine. Bank transfer could make you lose money, especially when the market is volatile and you want to move credits.
You can buy cryptocurrency using cash from a trusted friend or peer who wants to sell their cryptocurrency. All you have to do is pay them based on the agreed amount, and pay them through bank deposit or cash-in-hand. Then, you will receive the cryptocurrency on your chosen wallet address using a private key or other methods. If you meet the seller in person, they can scan the QR code that is on your crypto wallet and the digital assets will be directly sent.
The Bitcoin Automated Teller Machine is recognized as the best option for those who do not want to use the bank. Take into consideration that consumers without accessing a reliable banking system or have become disillusioned can use crypto funding. The BTC ATM appears and operates similarly to commercial bank ATMs but only accepts cash for crypto coins.
The disadvantage of using ATM to purchase Bitcoin is having to provide your ID photos or self-portraits before you can buy because your privacy can be compromised. In addition, the fees that range between 2% to 5% is a huge disadvantage. However, a lot of users say that ATMs are the best alternative because of the familiarity, convenience, speed, physical aspect, confidentiality, and liquidity it can offer.
These are just some of the current alternative ways of buying cryptocurrency. Let us know if you can think of any others. Still not ready to buy? Keep an eye out on the market trends because eventually the leading cryptocurrencies will react in real time to unfolding economic situations.