A beginner in the world of cryptography has many questions. Buying cryptocurrency today is no longer a problem. Digital money is available in specialized offline and online crypto exchange, it can be bought through intermediaries, in electronic terminals, on P2P platforms and cryptocurrency exchanges. Each of them prove to be the most preferred just for you. However, before making a final decision, it is important to be aware of the pros, cons, and pitfalls of each method.
Purchase at the terminal
In many large cities, special terminals are already operating. Outwardly, they look like bank BASS terminals or automatic account replenishment terminals. The principle of operation is exactly the same. In the terminal menu, you need to select the coin you need, specify the wallet for crediting coins, deposit cash into the banknote acceptor and digital coins will go to your wallet.
Of course, if the nearest terminal is located several hundred kilometers from your home, the convenience of this method looks very doubtful. Another minus of the terminal is a small selection of coins.
Offline cryptocurrency exchange
Organized in the same way as a regular currency exchange office or even integrated with it. In addition to buying cryptocurrency for cash, other ways to exchange fiat money for crypto may be available here.
This group includes sites with an extremely simple interface, where users can buy cryptocurrency directly from a bank card. This is quite convenient for one-time purchases or the purchase of relatively rare altcoins. Among the most famous services of this type, it is worth mentioning Changelly.
Such platforms can be compared to a custom bulletin board. The security of transactions is ensured by the platform itself. However, until both parties to the transaction confirm it, the coins remain in the third-party account. This group of services includes LocalBitcoins, Bitcoin Global and Paxful.
Buying through an intermediary
This is the most risky and unreliable way to buy cryptocurrency. An intermediary is a real person who will buy the coins you need at your request and for your money. First, the coins are credited to the intermediary’s wallet, and then he transfers them to your wallet, minus the agreed percentage for the service. The most obvious risk is to fall for the bait of a scammer.
Buying cryptocurrencies on specialized exchanges is one of the most convenient and safe ways. Modern crypto exchanges are functionally close to classical securities or forex exchanges. In addition to the actual purchase and sale of digital money here, they can be exchanged not only for other cryptocurrencies, but also for the good old fiat, withdrawn to personal crypto wallets, cards or electronic payment systems. Many platforms, in addition to trading, offer the possibility of other types of earnings on cryptocurrency.
How it works
First of all, you need to create an account. After that, on reputable sites, you will most likely be required to confirm your identity.
To confirm your identity, you will need at least a scan of your passport or other document that can replace it. As a maximum, you will need to attach an up-to-date photo or video made according to the established sample to the scan. After completing all the formalities, you will need to wait for the completion of the verification of your data.
Identity verification may not be mandatory, but then you most likely will not be able to use all the technical capabilities of the site. Part of the functionality will remain unavailable.
These measures are aimed at protecting customers from cases of fraud and protecting the site itself from possible participation in any illegal activities. All transactions on the platform are protected from fraud as much as possible, but users cannot keep their identity secret.
How is the purchase of coins
You need to select a coin to buy and create an order. In the order, you must specify the amount of coins and the price that suits you.
Orders can be executed immediately and completely, but it happens that the transaction is stretched in time and is executed in parts. After the transaction is completely closed, you can leave your coins on the exchange wallet and continue trading or withdraw funds to the offline wallet.
Classic crypto exchanges support digital and fiat money, payments from/to bank cards, electronic payment systems, etc.
The undisputed leader in this market segment is Binance. Using the data of the CoinMarketCap service, you can choose the service that best suits you.
Instant exchange services
Unlike classic trading platforms and exchangers, these services only support digital coins. Here you can buy BTC to ETH or other altcoins without registration and account verification.
How does this happen
Consider the process of buying cryptocurrencies on the example of the LetsExchange service, one of the best in its segment.
- In the upper field of the exchange widget, select a coin for sale and enter the amount of coins.
- In the lower field, select a coin to buy.
- Enter the wallet address for crediting coins.
- Press the button “Let’s exchange.”
The system automatically selects a deal for you, executes a swap and credits funds to your wallet. The service does not store your funds and confidential data. That is, the risk of theft or leakage is practically reduced to zero. Your coins leave the wallet for exactly as long as it takes to complete the transaction.