A Beginner’s Guide to Buying Cryptocurrencies With FIAT
The Cryptocurrency Craze
With an increasing number of cryptocurrency amateurs coming into the market every day, it is obvious that there is an increasing rise in demand for resources that guide them along their journey. There is a variety of information providing sites available online to help you with that kind of information. They are needed to get an expanded picture of the whole sector and make informed decisions based on their findings. Readers are encouraged to use the resources available and allow themselves to understand and comprehend the crypto sector in a fun and guided way.
Today we will talk about one of the most basic and important aspects of getting into the cryptocurrency market – Buying Cryptocurrencies. As the reader might know, cryptocurrencies are a little different from traditional assets such as stocks, bonds, etc. Their trading differs too.
To buy cryptocurrencies, one has to first keep a few principles in mind. They are essential for anyone who does not wish to lose their savings because of some error they know they could have avoided.
How to be a Vigilant Buyer?
To be a cryptocurrency buyer, you need to ensure that you follow some guidelines or principles to avoid any scams, errors, or misjudgments. Since it is still in its nascent stage, cryptocurrencies can look too complex and technical for anyone looking at it the first time. The following are a few guidelines that we urge readers to keep in mind before rushing to buy.
Choose a Good Exchange
It is important to choose the right cryptocurrency exchange that meets all the needs of the buyers. Obviously, one cannot choose a compatible exchange right away. So it is recommended that one accounts in various exchanges and experiment with all of them before settling on particular exchanges or exchanges.
Do not fall for scams and phishing sites
Before buying any particular cryptocurrency or any asset in general, we urge the reader to do brief research into it. It is common for cryptocurrencies to turn out as scams, leading the buyer to lose their initial funds. DYOR or Do Your Own Research Principle must always be followed.
Double-check before sending funds
Before sending fiat to exchange or transferring the cryptocurrencies from the wallet to another exchange or wallet, it is always good to double-check the funds and the address the funds are being sent to. Wallet IDs are complex hexadecimal, and a slight error in entering the address might end up in the loss of funds forever.
Always store large amounts in personal wallets
If a large purchase is made on a centralized exchange, the readers are asked to take the effort to store those funds on a wallet they created for themselves, instead of letting the funds lie on the exchange. It is a saying in the community, “Not your funds, not your Bitcoin,” meaning that you lose out to counterparts risk if you don’t directly own the funds.
Best places to Buy
For investors looking to enter the cryptocurrency space, a centralized exchange is still the most common means of doing so. There are also decentralized exchanges, meaning they are autonomous and function without oversight but can be too complex for first-time traders. Following is a list of best exchanges we recommend the reader to use, along with referring to a few local exchanges that can help them buy the first time.
Coinbase is a centralized exchange, which is also the oldest cryptocurrency exchange out there. It is available to users in over 55 countries as of 2020 and is the world’s largest cryptocurrency broker. Customers can buy bitcoin with a connected bank account, debit card, credit card, SEPA transfer, Interac Online, and many more payment methods.
Coinbase also allows for mobile trading. Mobile exchanges are the lifesavers for the on-the-go investor, allowing them to execute strategies anywhere and anytime. Unlike traditional trading, where one has to wait for the market to open, crypto trading happens 24/7.
Some of the major advantages of choosing a centralized exchange such as Coinbase are:
For a complete review of Coinbase, refer here
Gemini bills itself as the ‘world’s leading regulation friendly cryptocurrency exchange.’ It is headquartered in the United States and founded by the Bitcoin Billionaires, Winklevoss brothers. Boasting more than 100 cryptocurrencies for exchange and very competitive rates, it is no surprise to see that this platform has been head and shoulders above the competition.
Gemini is one of the most lucrative centralized trading platforms for cryptocurrency currently in the market. Gemini is a great exchange for those who value security above all else. This makes it well-suited for those exchanging large amounts of fiat currency for either Bitcoin or Ether. Being fully licensed and offering additional security features makes it one most secure exchanges in the cryptocurrency space.
Like Coinbase, Gemini also offers a Mobile on-the-go exchange for all its users.
For a complete review of Gemini, check here.
Coinmama is a US-headquartered cryptocurrency trading platform, currently operational in 50+ countries around the world. Coinmama is considered one of the most stringent exchanges out there. For its verification process, Coinmama ensures to collect tons of documents, sometimes way more than the required documents set by the regulatory authorities. It claims that it has taken this step to make the exchange as secure as possible.
Coinmama accepts credit or debit cards that are issued by Visa or Mastercard. The company has recently started accepting SEPA payments as well, with 0% processing fees. Prices are denominated in EUR or USD.
When choosing a cryptocurrency exchange, it is important to balance some different considerations. Exchanges are different ways of building security precautions, regulating users, building their network, and building a user experience.
At the end of the day, the best advice one could give is thorough and DYOR – Do Your Own Research. That’s the best possible strategy when going about deciding on the exchange of your choice.
To know more about cryptocurrency exchanges, their classification, and more, you can visit our complete guide here.