If you are thinking of entering the world of cryptocurrency, you will have to take the first step is to buy Bitcoin. But if you are new to the world of digital currency, you wouldn’t know how to buy Bitcoin or any coin.
The process, however, is not that complex once it gets explained to you adequately. There are also multiple ways that you can go about buying Bitcoin and begin trading.
1. Cryptocurrency Exchanges
The most popular option for buying Bitcoin is cryptocurrency exchanges. There are hundreds of crypto exchanges that allow users to buy and sell cryptocurrencies. The regulations, however, are different on each crypto exchange, so you may not be able to buy or sell coins from just any exchange.
There are also geographical limitations to certain exchanges only allowing the citizens of a particular country to buy cryptocurrency. For instance, if you are not in the U.S., you would be unable to purchase cryptocurrencies from various exchanges.
Before you sign up for an exchange, you must learn all of its terms and conditions to learn things such as commission fees. It is also essential to know the verification process in advance so you won’t have any problems later.
Another thing to keep in mind regarding crypto exchanges is the number of digital currencies they allow users to buy and sell. The older and more popular an exchange is, the higher the number of coin pairs they will support.
2. Peer-to-Peer
Another way of buying cryptocurrency is peer-to-peer transactions, just the same way as you purchase items from an online store. Some different websites and forums can connect you with Bitcoin owners. But if you are thinking about buying Bitcoin safely, this is an option that you should ignore because of the high risk involved.
It is pretty standard for people to get scammed while buying Bitcoin from individuals, and there is no exchange or stockbroker to back your transaction or put safety measures in place. If you have no prior experience with peer-to-peer cryptocurrency transactions, you are more likely to get scammed. So, even if you decide to use this method, practice extreme caution.
3. Stockbrokers
The third option is traditional stockbrokers; however, there aren’t many options to choose from. Currently, only a few stockbrokers offer customers the option to buy and sell Bitcoin. Stockbrokers also have complex regulations that can make it difficult for first-time buyers to figure out how to make proper investments.
Traditional stockbrokers that allow you to buy and sell crypto are not only a few in number, but they also only operate in a limited number of countries.
4. Bitcoin ATMs
A quick and easy way to buy Bitcoin is through Bitcoin ATMs. You can buy Bitcoin from a Bitcoin ATM and trade it for alt coins, and certain Bitcoin ATMs also let you exchange Bitcoin for cash.
There are a few problems with Bitcoin ATMs. For starters, the commission they charge people is much higher than what you would have to pay to a crypto exchange. Another issue with ATMs is that they are not very common. Although there are nearly 2000 Bitcoin ATMs in Canada, you may not always be able to find one easily when you are on the move.
5. In-Person
You can also buy cryptocurrency directly from people who take cash for a coin. But as with peer-to-peer Bitcoin transactions, buying a coin directly from individuals can be risky. However, the process has been formalized in certain countries, which can help individuals avoid scammers.
Since the process has not been formalized in Canada yet, it can be risky to go down this route. Unless you know that the person selling Bitcoins for cash won’t scam you, it is better to avoid such a transaction.
The safest option for buying cryptocurrencies is through an online exchange. But it is essential to use a wallet to store your funds to have complete control over your coins. Although you can keep the funds on the exchange, it could be risky. So, it is better to install a wallet app on your phone or PC to store your cryptocurrencies safely.
