Ready to get started with cryptocurrency but not sure how to acquire it in the first place? Whether you want to buy Bitcoin, buy Ethereum, or buy cryptocurrency tokens of a different name, we have you covered with three different ways to buy!
In the not-so-distant past, buying your first bitcoin was a much more intimidating process. The past few years have seen a lot of innovation in the space, providing much easier ways to enter the blockchain community by purchasing cryptocurrency. Each purchasing method varies in ease of use, fees, and identity verification. Here are the top ways to buy bitcoin:
Crypto exchanges, like a stock market, operate as a network of buyers and sellers. Large institutions buy and sell in substantial volumes, meaning that you can usually find someone to buy from. The past few years have been eventful for cryptocurrency exchanges. They went from navigating uncertain regulations and providing basic, yet confusing, crypto management software to gaining legal accreditation and putting out easier-to-use tools.
These cryptocurrency exchanges function just like any stock trading platform or foreign currency exchange. They use simple market mechanics to facilitate trades. Often, a cryptocurrency trading platform has a very similar interface to online stock trading interfaces. While there are many exchanges that allow you to buy bitcoin, the most popular for new users is Coinbase. Headquartered in San Francisco, the exchange has received the necessary regulatory approval to operate over 100 countries, giving its users extra peace of mind. Coinbase.com offers users the option to use fiat currency to buy various cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Tezos, and many others, already serving over 15 million customers.
Cryptocurrency ATMs are a way to buy bitcoin from a physical location. Most are located in public places, convenience stores, and shopping centers, and allow payment with credit cards or cash.
These machines function just as normal ATMs would, except they facilitate cash to cryptocurrency exchanges. There are generally two types of cryptocurrency ATMs. One-way ATMs will only allow you to purchase crypto, while two-way ATMs have the additional ability to sell cryptocurrency for fiat.
Before exchanges gained traction, a popular way to purchase cryptocurrency had been to find someone willing to sell cryptocurrency in your local area.
Services like LocalBitcoins.com and internet forums have allowed buyers and sellers to find each other and conduct private sales. These websites and forums allow buyers and sellers to find each other without the use of an online exchange. This direct transfer takes no additional fees, as users aren’t relying on a third party to conduct the transaction.
For more information on this topic please visit our Blockchain 101 course.