How to Buy Bitcoin and Other Cryptocurrencies?

Home » Cryptocurrencies » How to Buy Bitcoin and Other Cryptocurrencies?

The new economy is here, whether we admit it or not. At the end of the decade, the best-performing asset was neither oil nor gold, but Bitcoin. More and more newcomers are entering the crypto world, which can seem complicated at first glance. That’s why we prepared a simple guide to Bitcoin and cryptocurrencies. What do they mean? How do you buy, store, and trade them? This guide will answer all these questions, give you a holistic picture of crypto startups, and show you step-by-step how to buy cryptocurrencies in your chosen crypto exchange.


Why Are People Investing in Cryptocurrencies?

There have never been more users in the crypto world than today, and the numbers are growing exponentially. Clearly, there are several reasons why more and more people believe in cryptocurrencies’ decentralization and deregulation. Below are the three main ones:

Low-cost transactions: You may be tired of the rigid money system and want a fast, low-fee digital alternative. Today, you can pay with cryptocurrency in many retail stores worldwide. For example, the American company SpaceX has even committed to partially fund its ventures with DOGE memecoin.

Investment potential: Cryptocurrencies are a great investment option due to their volatility and early adoption stage. You may want to speculate by buying a cryptocurrency now and selling it at a higher price later.

Technology: Are you interested in blockchain technology and its applications? If so, you can use cryptocurrency to interact with open financial protocols related to lending or saving that eliminate intermediaries.


How to Buy Crypto?

There are several ways to buy cryptocurrencies. You can do this on a crypto exchange or trading platform. Sometimes even directly through a crypto wallet. You can also buy cryptocurrencies via SEPA bank transfer, credit/debit card, PayPal, or other financial services such as Skrill and Neteller.

Purchase by Credit or Debit Card

You can buy cryptocurrency with a credit or debit card if your card supports 3D Secure protocols. With this payment method, you do not need to top up your account in advance to buy cryptocurrency. You can purchase cryptocurrency instantly without waiting for the bank transfer to complete. Most major cryptocurrency platforms have partnered with payment processors that accept instant purchases using Visa or Mastercard cards, including KuCoin. This method made the purchase process much easier for the industry, as card purchases are simple, fast, and accessible to everyone.

The system is simple:

  • Choose the cryptocurrency and the desired amount.
  • Enter the card information.
  • Review the transaction and click “Confirm”.

Buying with a card is easier than a bank transfer because you don’t have to wait a few days for the transfer to be confirmed. On the other hand, buying cryptocurrencies with a credit or debit card may mean you pay a fee to the card issuer and a platform service fee. Entering all the necessary information is a real pain, and some banks require an additional confirmation stage before they approve the transaction.


Purchase via SEPA Bank Transfer

In most cases, buying cryptocurrency via SEPA transfer is as easy as using a credit card. First, make a SEPA deposit into your platform/exchange account. Once the deposit is confirmed, your EUR balance will be credited, and you can make the purchase. Exchanges generally charge low fees for SEPA transfers.

It is worth noting that daily limits exist on how much you can spend on cryptocurrencies. And while card payments are more or less instant, you’ll have to wait a few business days for the SEPA transfer to be confirmed.


Purchase through Intermediary Money Services

In recent years, many payment companies have announced support for cryptocurrencies, resulting from strong user pressure and the growing acceptance of cryptocurrencies. Among the biggest are:

Neteller allows users to buy cryptocurrency with 28 fixed currencies, with membership levels determining daily limits, fees, and processing speed. The Skrill service supports the conversion of 40 fiat currencies into digital cash with more than 100 payment methods. In 2020, PayPal began allowing users to buy cryptocurrency and use it as a source of financing for purchases at 26 million merchants worldwide.

European citizens are likelier to use Sofort, an online payment system that enables fast bank transfers. Essentially, customers use their online banking information without providing personal or card details to the merchant. Since the seller receives transaction confirmation in real-time, you can receive your cryptocurrency without waiting days for the funds to clear.

For example, KuCoin exchange works with many providers, including Neteller, Skrill, and Sofort. When you choose one of these payment options on KuCoin, you will be asked to confirm ownership of your account and then confirm the transaction. After confirming the transaction, Kriptomat will immediately submit the purchase order.


Are There Other Ways?

New options appear almost every day. You can also buy cryptocurrencies with cash, and you don’t need to know someone willing to sell; Peer-to-peer services like LocalCryptos connect buyers and sellers daily. Banking services like Revolut and Wirex also allow users to buy cryptocurrency with certain restrictions.


Where and How to Store Cryptocurrencies?

Once you have chosen how and where to buy cryptocurrencies, you need to store them somewhere. The best place for crypto storage is called a crypto wallet. The number of blockchain wallets continues to grow, with more than 50 million currently in use. These digital wallets support a variety of cryptocurrencies, including stablecoins (pegged 1:1 to a fiat equivalent like the US dollar), blockchain-based assets like BTC, and tokens based on ERC-20 and other standards. Even after you’ve decided which cryptocurrencies you want to collect, keeping them safe is another crucial piece of the puzzle. There are dozens of storage options, each with advantages and disadvantages.


How Do Crypto Wallets Work?

Crypto wallets are a type of personal online bank account. Each wallet has an address, a public key, and a private key. The wallet does not store your digital assets, as they are on the blockchain. The wallet gives you access to funds, an address to receive them, and an interface to perform transactions.

If you own the private key, you don’t share it with anyone; the funds in the wallet are yours and only yours to spend. In the wallet, you can send cryptocurrencies to friends, family, or merchants. You can also receive tokens from others, see the value of your cryptocurrency portfolio, and trade one asset for another. Some wallets also allow you to buy cryptocurrencies using different payment methods. Each wallet has a public and private key.

Public Key: This is your public address to which people can send cryptocurrency. It’s like your email address to which people send messages.

Private key: Only you know this and must not share it with anyone. It’s like your wallet password.


Conclusion

Now that you know how to buy Bitcoin, you are armed with all the knowledge you need to enter the crypto world. We chose Kriptomat because it was carefully designed to make buying Bitcoins a simple and pleasant experience – while ensuring high security and reliability. Of course, there is a small sea of exchanges and platforms, and among the leaders are Kriptomat, Binance, Bitstamp, Kraken, and Coinbase.


Share Our Content on Social Networks:


FAQ

What are the most popular cryptocurrencies?

How can I buy cryptocurrency?

What are the risks of investing in cryptocurrencies?

Why was Bitcoin created?

How does Bitcoin mining work?