Cryptocurrency is digital form of currency that is being used increasingly all over the world. Cryptourrencies can be bought and traded from cryptocurrency exchanges or traded locally between friends, family and strangers with the help of third party apps that helps you locate buyers and sellers in your area or globally.
Buy Cryptocurrency from an Exchange
Buying coins from a cryptocurrency exchange is probably the most common thing to do. A cryptocurrency exchange does not own the currency itself. Instead, it acts as a market where currency buyers connect with currency sellers. Most exchanges let’s you trade fiat currency for cryptocurrency and the other way around. Other just do crypto to crypto exchanges.
It’s important to do your research before choosing your Exchange.
What coins do you want to trade?
If you are interested on getting your hands on some Bitcoins, then most exchanges should be able to help you out. On the other hand if you are looking for a newly released coin you have to understand that only a few cryptocurrency exchanges might trade with that currency. It’s also important to understand that Bitcoin trades against most fiat currencies, Other Cryptocurrencies for the most part only trades against Bitcoin (in some cases Litecoin). So remember to keep your eyes open for what trading pairs your choice of exchange trades with.
What is the exchange trade, deposit, withdrawal and bank transfer fees?
When most people choose an exchange they usually only look at the trade fees. This fee can vary between exchanges from as little as 0.2% to as high as 3%. What most people usually forgets though is that most exchanges has deposit and withdraw fees, these fees can far exceed the total cost of trade fees depending on your trading patterns. On top of that the banks want their cut for transferring your hard earned fiat currency, this cost is usually the largest in comparison with the others fees. Though this cost is out of the control of the exchange is still important to choose and exchange that cooperate with your bank, or banks in your country without adding large excess fees.
Is this exchange legit?
While most cryptocurrency exchanges stay true to there word, we have seen some close down for good with out paying out the currency owned to it’s users. It’s important that you do your research here and ask around in the community before just transferring fiat or cryptocurrency to an unknown vendor. It can also be smart to check out the exchange security records, have the exchange been hacked so far, if so, how did they handle it? We recommend using our Cryptocurrency Exchange Directory to find information, reviews and ratings from real people.
Buy Through a Cryptocurrency Wallet
Some wallet providers, including Blockchain.info, Circle and Xapo, allow you to buy the coins directly from your wallet, using a fixed rate. To do this, you will also have to tie your bank account and identity to your cryptocurrency wallet.
Pros and Cons of purchasing cryptocurrency through a wallet
It’s ridiculously fast
When purchasing cryptocurrency directly from a wallet provider the transaction will be instant. Keep in mind that only a few cryptocurrency wallets available today allows you to trade instantly with fiat currency markets.
Your privacy is at risk
The downside of purchasing cryptocurrency through a wallet is that your wallet address will be tied to your bank account, and your bank account is tied to your identity. This fundamentally breaks the pseudonymous principles and features found in many cryptocurrencies existing today.
Buy Cryptocurrency Through ATMs and Kiosks.
The network of bitcoin and cryptocurrency ATMs rapidly spreading across the globe. ATMs accept cash, for the most part of it’s local fiat currency. You can find your ATM by using our Bitcoin & Cryptocurrency ATM Map. With the help of the map and directory you can easily find the closest ATM. The ATM listings also provide opening ours, currencies traded, and other ATM specific information. In addition to ATMs, businesses and the community is working hard to bring bitcoin and cryptocurrency purchase available at kiosks, post offices and tobacco shops.
Buy Cryptocurrency Peer-to-Peer (Person to Person)
To buy cryptocurrency from an individual, you will first need to find a seller. There are many ways to locate a bitcoin or cryptocurrency seller in your area. Mycelium Local Trader is one of them, it’s a decentralized in-person exchange that is built right into the Mycelium Bitcoin Wallet. LocalBitcoins is another site that vastly improves the experience of buy bitcoins locally. Ofcourse you do not have to be close to the person you would like to trade cryptocurrency with either. You can always trade peer-to-peer globally using these tools and base your judgment on the review and score system embedded into the sites and applications to verify a trustworthy counterpart.
Thing to be aware of when trading cryptocurrency peer-to-peer.
Transact in public places
If a transaction is done face to face it is recommended to meet the person in a crowded area like a cafe or similar. Though thousands of face to face transactions are made safely every day, there has been an incidents where bitcoins has been stolen under gunpoint during a transaction.
Be aware of Phishing Sites
It’s important that you verify that the site and/or app you conduct your peer-to-peer over. Some cases of phishing attacks has been made on major peer-to-peer trading sites and applications. A phishing attack is an attempt to acquire sensitive information such as usernames, passwords, and personal details by masquerading as a trustworthy peer-to-peer entity in an electronic communication like email or chat.
Buy Cryptocurrency With Credit Card
In the past it has been seen as risky business for sellers to offer the option of buying Bitcoin and other Cryptocurrency instantly with credit cards. Recently that has changed and some services are now allowing you to buy cryptocurrency with your credit card. However, that does not mean it is entirely risk free in all markets; if you are from Asia or Africa your funds may be frozen by credit card payment processors for further inspection due to the large amounts of fraud that come from those continents.
Buy Cryptocurrency With Bank Transfer
This solution is offered by most cryptocurrency exchanges today. You can also buy bitcoins from other people when using a service like LocalBitcoins.com or simply agree with the person in front of you and do it manually.
Buy Cryptocurrency With PayPal
You can buy bitcoins from other people using paypal with services like LocalBitcoins.com and Mycelium Local Trader. However, this will cost you a bit more due to paypals dispute and resolution process. You will also need a good track record with the third party service you are using. Sellers simply can’t take the risk of selling bitcoins to any random person and then have the money sent via paypal taken back by the buyer.
Buy Cryptocurrency With Cash
Cryptocurrencies can be bought with cash just like any other form of goods and services. It’s a trade of one token of value for another. Trade with a friend or someone you meet, or use third party peer-to-peer (person to person) third party services.
To find out more about how cryptocurrency works and how you can use it with the help of our Cryptocurrency Guides.