Digital currencies have become quite popular in recent years. Many individuals and investors are looking to buy into this asset class, but are not sure where to begin. In this blog, we’ll take you through some of the beginner-friendly methods to assist you in buying your first crypto.
Crypto Exchanges
These are online platforms where you can buy,
sell or swap your cryptocurrencies. You’ll need to signup on these platforms
using your e-mail or phone number and once your account has been activated, you
can start by depositing funds using your bank card or wire transfer. Popular crypto
exchanges include Binance, Coinbase, Kraken, KuCoin & Bybit.
Keep in mind that these crypto accounts are
just like your social media accounts and are vulnerable to hacking and phishing.
Make sure you set a unique password that you don’t use somewhere else and enable
all the security options such as 2FA, Anti-Phishing code and Biometrics. In
order to increase your transaction volume, you can consider completing KYC
(Know Your Customer) Verification. This usually takes less than a minute and
you can do so by scanning your government-issued documents such as ID, Driving
License or Passport.
Peer-To-Peer (P2P) Marketplaces
These are platforms where you can buy crypto
directly from a selling party. Through these platforms, buyer transfers fiat to
the bank account of the selling party and then the selling party releases the assets
once the payment is confirmed. To protect the funds of both parties and to
eliminate frauds, these platforms also play the role of escrow. Popular P2P crypto
marketplaces include LocalBitcoins, Paxful etc.
How does P2P transaction work?
Once the buyer
places an order, the assets in the account of selling party are temporarily
frozen and remain so until the completion of the trade. As soon as the seller
confirms the receipt of payment, the assets are automatically transferred to
the account of buyer. The assets are made frozen in case any conflict arises
between both parties during the trade. In such cases, customer support of these
platforms may step in and may request evidence from both parties to create a
settlement.
Bitcoin ATMs
These are automated physical machines that
allow you to buy crypto using cash or bank card. They work just like a normal
ATM machine, but instead of dispensing cash, they deposit crypto directly to
your crypto address. You can find such ATMs near you using Coin ATM Radar.
It is important to remember that the prices of
cryptocurrencies are highly volatile. Conducting thorough research and
understanding the risks and potential rewards can help you navigate the world
of cryptocurrency with greater confidence.
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