Finance

Top 4 ways to buy crypto coins

Around 50 percent of Americans are confident that crypto coins will define the future of mainstream finance in the coming decade. A prestigious bank has also claimed that crypto coins would replace fiat currency in the near future. In other words, cryptocurrency is fast foraying into the mainstream economy – although a niche group of experts have already stated about the arrival of crypto coins into the mainstream. One of the leading crypto exchanges has predicted that the number of Bitcoin users will touch 1 billion by 2032. The crypto industry is witnessing increasing attention and investment for a while now and for all the right reasons. But, where do you purchase crypto coins to invest in this booming industry? The best option is to buy crypto instantly where you can sell and exchange the crypto as well. Read more

Top places to buy cryptocurrency

Well, buying cryptocurrency exchange is not the only option to purchase crypto coins. You also have multiple other places from where you can buy and invest in popular cryptos. Here is a brief on the different platforms from where you can buy crypto coins.

  • Cryptocurrency exchange

The most popular and best place for purchase and investment in crypto coins is to buy cryptocurrency exchange. These are similar to traditional stock exchanges but are dedicated to crypto. Crypto exchanges enable users to buy, sell, trade, and HODL crypto coins.

If you opt to buy cryptocurrency exchange, you will be able to buy crypto coins through fiat currency or else, via cryptocurrency as well. Major advantage of buying cryptocurrency exchanges is that these platforms do not usually charge unwanted spread mark-ups. In other words, when you select a cryptocurrency exchange, you can be assured of no hidden charges in trading fees.

When you buy cryptocurrency exchange, you can store your crypto coin in the platform’s in-built wallet only. However, an exchange wallet is not always the most secured storage option for your treasured cryptocurrencies. The safest storage for crypto coins is a hardware cold wallet.

Types of crypto exchanges-

There are 3 types of exchanges to choose from if you opt to buy a cryptocurrency exchange- Centralized, Decentralized, and Hybrid.

Centralized crypto exchange

When you go to buy a cryptocurrency exchange with a centralized exchange, you have a platform that is governed and controlled by one single centralized entity. There are many advantages if you buy a cryptocurrency exchange with a centralized exchange.

  • User-friendly interface
  • High speed
  • Fiat gateway
  • Bigger liquidity
  • Strong trading volume
  • Works with authentic traders only

It’s to note here that when you buy a cryptocurrency exchange with a centralized exchange, you will have to submit personal information and fill up a KYC form. Some users could be apprehensive of sharing confidential details with a third-party platform. Also, you will have to pay high fees when you purchase and trade crypto coins from a centralized exchange.

Decentralized crypto exchange

Unlike the centralized counterpart, a decentralized crypto exchange is backed by a decentralized infrastructure and it is not controlled by a single centralized entity. If you buy a cryptocurrency exchange with a decentralized exchange, a major benefit is that you never have to share personal details. Here are some points on the advantages you will enjoy if you purchase crypto coin from a decentralized exchange:

  • No need to submit personal details
  • No KYC hassles
  • Users will have complete custody of their fund
  • Provides more security against hacking attacks
  • Lower fees than centralized exchanges

Hybrid crypto exchange

If you buy cryptocurrency exchange through a hybrid exchange, you will cherish the best parts of both centralized and decentralized exchanges. Hybrid exchange assures a user-friendly interface like a centralized exchange, as well as fiat gateway. Hybrid exchanges also assure better liquidity, greater trading volume, and higher speed than decentralized ones. On the other hand,  akin to decentralized options, hybrid exchanges allow users to have complete custody of their fund. Plus, these exchanges do not charge high fees.

Steps to buy crypto from  cryptocurrency exchange

Here is a brief on how to purchase crypto coins with the cryptocurrency exchange.

  • Choose your preferred form of exchange when you are planning to buy cryptocurrency exchange
  • Sign up with your chosen exchange
  • Go through the verification procedure and fill in KYC details if you have chosen to buy a cryptocurrency exchange with a centralized exchange. If you are buying crypto coins through a decentralized or a hybrid exchange, the verification process will be fairly simple.
  • Deposit money to buy crypto coins. There are various ways to deposit money when you plan to buy a cryptocurrency exchange. You can use payment apps, bank transfer, as well as debit and credit cards. However, it’s better to avoid credit cards as credit card transactions charge exorbitantly high fees
  • Place order for chosen crypto coin
  • The exchange will deposit the purchased crypto coin in your wallet. You can always transfer the money from the exchange wallet to your personal cold wallet

  • Crypto P2P online marketplace

If you are looking for another option over the cryptocurrency exchange to purchase crypto coins, you can opt for online P2P marketplaces. These are dedicated P2P marketplaces online especially for crypto. You will be able to buy your preferred crypto coin here directly from a seller through cash.

  • Crypto ATMs

You can also purchase crypto coins from crypto ATMs. All you would need to do here is to locate the closest crypto ATM, scan QR code to make payment, and then receive crypto in your wallet. From 14,000 in 2020, Bitcoin ATMs have grown to 34,000+ in 2021. You have crypto ATMs for other cryptocurrencies too. However, one of the downsides of choosing to buy crypto from an ATM over buying a cryptocurrency exchange is that you will have to pay higher fees.

  • Trading apps

Trading apps enable users to buy crypto coins. Some of them also offer a wide selection of cryptocurrencies to choose from. However, trading apps generally charge spread markup which you don’t have to face if you buy cryptocurrency exchange.

After you buy your chosen crypto coin, you can use HODL or spot trading if you are aiming for yields in the short term.

Scarlett Watson

I am a professional writer and blogger. I’m researching and writing about innovation, webinars, Hybrid events technology, virtual events Platforms, and the latest digital marketing trends.

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