Bitcoin and alternative coins are now often discussed. Millions of people who did not use cryptocurrencies before, begin to invest money in their purchase. But many newcomers are stopped by the banal ignorance of how and where one can buy a cryptocurrency. In fact, investing in the “crypt” is much easier than it might seem at first glance. In this article we will talk about 5 topical ways to buy bitcoin and altcoins in 2018.
To begin with, we need to understand that crypto-currencies do not exist in physical terms. Your balance and transaction data are virtual records that are stored in millions of block chains. So it appeared “blockchain”. You can own cryptocurrency only if you have access to the records and the key chain that are stored on your wallet. Therefore, to buy Bitcoin or Altcoin, you need a purse. If you do not know what a cryptocurrency purse is and how to choose it, we recommend you read our article on this topic.
When you pick up the wallet, you can go to the purchase. There are 5 main ways in which you can buy or exchange a cryptocurrency:
- Automatic exchanger;
- Direct deal with the person concerned;
- Purchase of a cryptocurrency for cash;
- Cryptocurrency exchange;
- IQ Option Broker.
Purchase of Cryptocurrency in the automatic exchanger
Exchangers – the fastest, but at the same time the most unprofitable way to buy crypto coins. The exchange rate is heavily overpriced during purchase and understated when sold. You need to be prepared to give up to 20% over the course, if you buy or sell. These figures may vary depending on the popularity of the coin and the current state of affairs in the crypto market.
Exchange services are easy to handle. To buy bitcoin or altcoins, you need to specify the amount, copy the address of your purse, insert it in the “receiver” field and pay the equivalent of the BTC you buy in a currency convenient for you. As a rule, the most profitable rate is available in the direction of USD > BTC. But there are other options for exchange: payment systems, currencies of different countries, other cryptonyms, etc.
The exchangers are suitable for quick purchase or sale, but if you are not in a hurry, it’s better to find another way to replenish or empty your crypto wallet.
- Unfavorable course;
- Availability of transaction fees;
- Restrictions on the minimum / maximum amount of the transaction;
- In the exchanger’s reserve, you may not have the right amount of money.
- Low risk of losing money on condition of using trusted exchangers;
- Fast transaction processing;
- Support for many areas of exchange;
- Wide range of services allows you to find the exchanger with the best rate.
Purchase of Cryptocurrency without intermediaries
The model of exchange without intermediaries involves the presence of two interested people, one of which wants to sell, and the other – to buy a crypto currency. You can find such a person in two ways. The first one is on the profile forum. The second one is on special exchanges. The option with the forum is less attractive. Often this is long and unsafe. There is always a risk of getting on the swindler if you conduct a transaction without a guarantor and transfer money first.
The advantage of exchanges that work on a man-to-man model is convenience and relative safety. For example, one of the direct exchanges of Localbitcoins immediately shows the list of available offers with the price, the maximum-minimum amount of the transaction and the rating of the user who placed the ad. The service adapts to the country of the visitor, therefore on Localbitcoins it is always possible to use the national currency without losing money for conversion into dollars or euros.
Localbitcoins is focused on trading bitcoin, so you will not be able to sell or buy altcoins bypassing the need to convert them to BTC. But on the site there is a large list of available for exchange directions:
- Postal money order;
- Western Union
- Amazon and Ebay gift cards;
- Cryptocurrency, etc.
In total there are several dozen ways to buy or sell bitcoin on the platform. The Exchange acts as an intermediary between the seller and the buyer, which excludes the possibility of fraud.
Main disadvantage – you can buy only BTC.
- Lack of commissions;
- Dozens of ways to exchange;
- Minimum transaction amount is often less than on the exchangers.
How to buy Cryptocurrency for cash
On Localbitcoins and similar exchanges, you can also find places where they offer to buy or sell bitcoin for cash. To find such offers, select your country, currency and the appropriate type of exchange in the search form. The platform will show a list of all relevant ads with a rating of sellers, which is especially important during the transaction with the transfer of money from hand to hand.
An alternative way to buy cryptocurrency for cash is payment terminals and Bitcoin machines. In devices of the first type, an inadequate course is often established, while in Bitcoin machines it is much more profitable to exchange.
To find out if there are similar crypto terminals in your city, use the Coinatmradar or Coinmap service. Just open one of these sites, select your city and see if there are bitmoats marked on the map.
- Bitcoin machines are not found everywhere;
- You can buy only bitcoin;
- Unprofitable course in terminals.
- Fast transfer;
- Receiving cash in automatic mode.
It is important to understand that it is not safe to store money on the exchange. At any time, the exchange may collapse, faced with technical or legal problems. At best, the balance of users may hang, and the worst scenario involves a complete loss of money. This can happen even with popular crypto-exchange exchanges, such as Poloniex, Bitfinex, Bittrex, Binance, and others.
But for an exchange and short-term storage of funds, exchanges are quite fit. Moreover, some altcoins can be profitable to buy or sell only on the exchange.
- Hidden payments (not everywhere);
- You have to pay a commission;
- Order is executed for a long time;
- On some exchanges, you need to verify your account;
- Your account can be frozen or blocked.
- Wide range of available cryptocurrencies;
- Support for popular payment systems;
- Buying / selling at a favorable rate;
- Ability to make money on price fluctuations.
Purchase of a cryptocurrency through an IQ Option broker
Buying coins on IQ Option, you get a reliable platform for storing your asset. But this is not all the advantages of the platform. The main advantage is the ability to use the crypto currency in classical trading, with the traditional tools available in this area:
- You can turn on one of 12 indicators or combine several signals on one chart;
- Changes in the value of the asset are displayed in real time in the form of a graph;
- There is an opportunity to unwind the chart for 1, 7, 30 days ago with one click of the mouse;
- You can instantly exchange the deposit balance for bitcoin or any available altcoin;
- No long-term account verification is required, as is the case with most crypto-exchange exchanges.
To buy a crypto currency in IQ Option, it is enough to replenish the dollar balance by any amount. Select the asset you are interested in and buy it. After that, a new record will appear in the general portfolio with the current balance and date of purchase.
Now you know that there are enough ways to buy and sell the crypto currency. You need to choose the most optimal option. Practice, look for profitable directions and eventually you will find an exchange scheme that will satisfy your needs to the maximum.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING