Nowadays, everyone is switching to cryptocurrency at a lightning-fast pace. Businesses are accepting this currency, millions worldwide are trading in it, and it has its currency exchange – a digital one. Perhaps, the best part is that the banking mafia and government aren’t in on this yet. Initially started as a payment system, it turned into an investment – and now everyone wants in.
Here are a few ways to enter the crypto-world and purchase bitcoins.
To the layman, buying cryptocurrency may seem like the most viable option. However, there’s a drawback – crypto platforms charge hefty fees for transactions through funding modes like credit cards. Even though they appear not as substantial as they are said to be, they might add up to a lot over time. You can purchase Bitcoins via Credit Card easily.
Using this method to buy cryptocurrency has another drawback: your transaction will be considered a cash advance. Everybody in the everyday world of exchange rates is familiar with the term “cash advance.” – it’s a short-term loan offered by many credit cards. As all loans come with an interest rate applicable upon the amount, purchasing Bitcoins via cards can increase the payable interest and impact you more than you think. Last but not least, investing in something as unstable yet profitable is a colossal risk; you won’t want to be in debt for something like that.
Most common cryptocurrency
Bitcoin is the most dominant form in the market and makes up approximately 41% of the blockchain market. As it is the most common form of cryptocurrency, it is also the currency people mostly trade in. When converting bitcoin to dollar, one Bitcoin is equivalent to roughly USD 23,000 – that speaks volumes!
Centralized crypto exchange
A crypto exchange is like a money exchange or stock exchange – a platform where buyers and sellers intermingle and buy, sell, or exchange dollars and coins. As of today, there is a multitude of crypto exchanges worldwide; but choosing the right one for yourself is always tricky. However, since you are a first-timer, you will want to go for a crypto exchange with a low fee without compromising security, as security keeps the whole operation going. With the abundance of crypto exchanges, you have nothing to worry about – do the required research and choose one for yourself.
The next step is to see whether your exchange offers Bitcoin wallet services. Once that is out of the way, you can swiftly start buying. One Bitcoin has a value of USD 23,000, making it unaffordable for the masses. On the bright side, you can own a portion of it instead of amassing such a hefty sum and investing it – that’s like keeping all your eggs in one basket. You will own a percentage of whatever amount you invest.
Although not one of the most favored modes of buying Bitcoin, PayPal also allows you to purchase this form of cryptocurrency. However, the benefit of buying crypto through this mode comes with a catch. PayPal clearly states on its website that you only have permission to hold the currency in your account. Moreover, you cannot transfer the cryptocurrency in your account to any other accounts on or off PayPal, leaving you helpless. The last downside is that you can’t send your cryptocurrency to any other crypto wallet.
But don’t lose hope, as there is a saving grace when it comes to PayPal. You can use it as a deposit when you purchase cryptocurrency through companies like Coinbase.
A Bitcoin ATM is more like a physical bitcoin exchange than an ordinary ATM. The only difference is that you insert hard cash instead of inserting your debit card. After inserting the money, whatever amount you purchase is added to your online wallet. Although, on the downside, Bitcoin ATMs are still a thing of the future, as setting them up costs a fortune. But on the bright side, as compared to other modes of purchasing, ATM purchase fee is comparatively cheaper.
As the name states, peer-to-peer exchanges allow all their customers to exchange and avail of other services – it helps people find one another. Moreover, there is a much deeper and direct connection between the users. Users post requests to either sell or buy bitcoins along with details regarding the price and mode of payment – it’s like a marketplace. People willing to either buy or sell can look for the advertisements that suit them best and make the transaction. Moreover, traders are ranked and reviewed, allowing buyers or sellers to know whether or not the other person is trustworthy. However, on the downside, they are less convenient and more expensive, as it is hard to get the market rate.
Time doesn’t wait for anyone, and neither do advancements or technology. As the world moves forward, it is imperative to keep up with it and adapt to all the changes. Bitcoin is no different as it has entirely changed the concept of currency since its inception in 2009. With the tips mentioned above, you can choose the mode of purchase that suits you best and kick-start your journey in the crypto-world!