Methods of Buying Cryptocurrency

Cryptocurrency is becoming more and more commonplace, with an increasing number of businesses accepting it as payment. Some people want to buy crypto to use in their daily lives. Others want to purchase cryptocurrency as an investment. Or you may simply want to own some crypto so you can be involved in the next big change to the financial sector. No matter your reason for wanting to buy cryptocurrency, there are multiple methods available for doing so.

Get a Wallet First

Before you buy cryptocurrency, make sure that you have somewhere to store it. Crypto is stored in something called a cryptocurrency wallet. These typically support a specific type of crypto or several types of coins. Be sure your wallet supports the crypto(s) you want to buy and that you use the appropriate wallet address during purchase. A multi-currency wallet will have separate wallet addresses for different coins.

Buy on an Exchange

The most common method of buying cryptocurrency is to do so on one of the many cryptocurrency exchanges. You can find dozens of exchanges that let you purchase crypto with your fiat or vice versa, with Coinbase and Kraken being among the most popular. The payment methods and verification requirements will vary by exchange, so you can have a process that is as private as you want. The most common payment methods on crypto exchanges are usually bank transfers, although credit cards are also incredibly common. You can also find a crypto exchange that lets you buy your cryptocurrency of choice using an e-wallet like Neteller or PayPal.

Visit a Crypto ATM

If you happen to live in a big city, then there is likely a cryptocurrency ATM somewhere in your city. There are thousands of these around the world, so you may or may not be within a reasonable distance of one. If you are, you can just visit the cryptocurrency ATM and let it guide you through the transaction. Using the machine, you will purchase crypto with your fiat. Just be aware that crypto ATMs tend to charge higher transaction fees than other methods.

Buy From Someone You Know

You can also just buy cryptocurrency directly from someone that you know who wants to sell some of their crypto. You can work out the exchange rate to use and how to complete the transaction. You would likely give them cash, a check, or money via the app of your choice, and they will then send you the crypto.

Buy on a Peer-to-Peer Exchange

Another popular option is using a peer-to-peer exchange to buy cryptocurrency. The most popular option is LocalBitcoins. You can visit the website and set your location then look for Bitcoin for sale in your area. The website lets you sort the offers by payment method and other factors. Or you can create your own listing to let others know you want to buy Bitcoin. The best peer-to-peer exchanges will have some sort of escrow service as well as a rating system and a method of handling disputes.