What are the safest ways to buy Bitcoin
September 17 (PR): So you’ve done your research on cryptocurrencies, seen that bitcoin is the best cryptocurrency for you, read up on bitcoin and its value, and now it’s time to make your first bitcoin purchase.
Now all you have to do is figure out how to safely buy bitcoin. You don’t want to fall into a trap and end up giving your money to a scammer. This article aims to provide you with the necessary information on how to safely buy bitcoin!
Buy with a prepaid card
Prepaid cards, also known as pay-as-you-go or everyday cards, can be used in a similar way to debit and credit cards to pay for products and services. There are nevertheless significant differences between prepaid cards and credit or debit cards which contribute to the former being used to a greater extent for daily activities than the latter.
In recent years, people have started using prepaid cards to buy BTC and it has gained popularity among more investors. Prepaid cards usually incur higher costs at cryptocurrency exchanges than other payment methods do; However, prepaid cards offer a number of significant advantages that other payment methods do not:
? Unlike bank transfers, you can instantly buy bitcoin using a prepaid card,
? It is a more convenient and open way to buy cryptocurrencies,
? The risk of incurring debt is reduced because you can only use the money on your card,
? As a result, buying BTC is a safer approach since you reveal less information about yourself,
? Even if your prepaid card is compromised, the money on it can only be spent; your bank accounts are safe.
Purchase by credit card
When paying by credit card, the buyer may be required to pay additional processing fees in addition to the transaction fees that the exchange has already paid. Credit card companies consider purchases made with bitcoin to be cash advances, and as a result, they increase interest and fees on cash advances.
Buy with PayPal
PayPal allows you to buy bitcoin in two ways: either by transferring money from your credit or debit card to your PayPal account or by using the balance you have in your account to fund the purchase of cryptocurrency.
If you buy bitcoin directly through PayPal, the company makes money on the cryptocurrency spread, which is the difference between the price of bitcoin on the market and the price of bitcoin when converted to your native currency. In addition, the business charges a transaction fee on each and every purchase. These costs are based on a percentage of the total purchase cost.
One of the disadvantages of buying cryptocurrencies via PayPal is that an investor is unable to transfer the cryptocurrency off-platform to the payment processor to an external crypto wallet or personal wallet. In addition, only a small number of online merchants and exchanges allow the use of the payment processor to purchase payment.
Steps to buy Bitcoin
1. Choose between an exchange or broker
Exchanges often have low fees, but they usually have more complicated user interfaces, a wide variety of transaction types, and sophisticated performance charts, which can be intimidating for novice cryptocurrency investors.
The ease of use does not come without a cost, however, as the beginner-friendly options charge much more than it would cost to buy the same cryptocurrency using each site’s standard trading interface. You should probably aim to study enough to be able to use the conventional trading platforms before you make your first bitcoin purchase – or not too long after. This will help you save money.
Cryptocurrency brokers, which offers user-friendly interfaces and manages all important interactions with exchanges on your behalf, simplifies the process of buying cryptocurrency. Some of them charge higher fees than exchanges do.
Others will claim to be “free”, but they will profit from you in one of two ways: either they will sell large brokerages or finance the details of what you and other traders buy and sell, or they will fail to execute your trades until the best price on the market.
You need to exercise caution when working with brokers despite the fact that their usefulness cannot be denied because there may be restrictions on your ability to take your bitcoin holdings off the platform.
At first glance, this might not seem like a big deal, but experienced cryptocurrency investors usually keep their money in a digital wallet for added security. Some users opt for physical bitcoin wallets that are not connected to the internet as an additional measure of security.
2. Connect your exchange to a payment option
You can link your prepaid card, debit card or PayPal account. In order to complete this step, you may be asked to verify your identity by sending a photo of your ID card or a photo of yourself.
This is done to verify that the information you have submitted matches your official documents.
3. Place an order
Cryptocurrency exchanges have evolved to the point where they mimic the same level of functionality as their stockbroker equivalents. Cryptocurrency exchanges usually provide a wide variety of order types and investment opportunities. Almost every cryptocurrency exchange allows customers to place market, limit and stop-loss orders, with the exception of a few.
4. Store Bitcoin safely
Wallets can be used to store digital assets in a more secure way, and Bitcoin and other cryptocurrencies are examples of such wallets. Holding cryptocurrency off an exchange and in a personal wallet gives investors more control over the private key to their funds than using an exchange. Although an exchange wallet is available, it is not recommended to use it to hold large amounts of cryptocurrency or for long periods of time.
Alternative ways to buy Bitcoin
Bitcoin ATMs
Bitcoin ATMs perform the same function as traditional in-person Bitcoin exchanges. People can buy bitcoin by putting money into a machine and then using the money to buy bitcoin, which is then sent to online wallets held by the customers. Recently, there has been an increase in demand for Bitcoin ATMs worldwide.
Bitcoin purchases made using an ATM incur not one but two fees: the first is a purchase cost, and the second is a conversion fee to turn local cash into bitcoin. Both of these costs are relatively high compared to other available options.
P2P exchanges
There are certain peer-to-peer (P2P) exchange systems that offer users a more direct connection with each other.
P2P exchanges do not provide users with the same degree of anonymity that decentralized exchanges do, but they do give consumers the chance to compare prices and find the best deal possible. Many of these exchanges also include rating systems, which allow users to rate potential business partners before engaging in any kind of transaction with them.
To conclude
There are several ways you can safely buy bitcoin, be it using the more traditional methods like prepaid cards and PayPal, or using alternative modes like bitcoin ATMs. Some people may have a false narrative about buying bitcoin and may see it as a shady business, but if you choose the right methods, you have nothing to worry about!
Be sure to follow the instructions carefully so you don’t get stuck on a step and can complete the process faster!
