How to buy cryptocurrency in 2021?

Cryptocurrency is a digital asset powered by a blockchain. The blockchain is a reliable storage system for any information that cannot be erased or changed.

The digital currencies popularity is growing and if you are wondering how and where to buy cryptocurrency, you are in the right place. Here we will analyze the three main options and their safety.

Buying cryptocurrency on the crypto exchange

In this case, you need to sign up and go through KYC (Know Your Customer). This is the procedure for your identification. After that, you will receive a cryptocurrency wallet and can buy digital coins. Exchanges have different tools for making money. For example, margin trading, smart staking and other tools. You can also make money on cryptocurrencies if you track their course and trade depending on market sentiment. At the same time, the exchange is a guarantor, protecting your funds using AML (Anti-Money Laundering) and other tools.

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P2P

Buying cryptocurrency on a P2P platform

This is a fast and convenient way for both experienced traders and newbies. P2P platform is an aggregator of ads from different users. You need to sign up, after that you receive the digital wallet and can buy and sell a cryptocurrency, responding to other users’ ads. If none of them fit, you can create your own. P2P usually doesn’t require KYC for registration and it’s enough to confirm your email. Thus, if you are not going to fully trade, but want to quickly buy or sell crypto, this is your option. As for security, such sites usually use an escrow account, where they fix the cryptocurrency until the buyer transfers fiat for it, which protects both parties from fraud.

Offline exchange services

Such services work by analogy with regular currency exchange. You come to the exchanger and buy a cryptocurrency for cash that comes to your wallet. To do this, you need to have a wallet registered on a platform and its address. It is difficult to talk about the security of such services. The only thing you can do is to carefully check that the cryptocurrency has arrived in your account before giving cash for it. Keep in mind that cryptocurrency transactions can take anywhere from ten minutes to an hour or longer, which gives more oportunitues for fraud.

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Which coin to buy first?

If you have been thinking about buying cryptocurrency, Bitcoin probably came to mind first. But this is a rather expensive coin, as a start. 1 BTC cost both $16k and $19k at different times. But fortunately, bitcoin can be split and bought not a whole coin, but a part of it. The second most popular coin is Ethereum, it is based on smart contracts and consistently ranks high in the ratings. Another reliable coin similar to Ethereum is Tron. These two coins are worth less than Bitcoin, so you can safely buy multiple whole units. If you are afraid of volatility, but you want to try the crypt, pay attention to stablecoins. For example, Tether. This coin is backed by the US dollar in a 1:1 ratio and the rate practically does not fluctuate.

What’s the best way to buy crypto?

The optimal way to buy bitcoin or other digital coins depends on your goals and needs. If you want to actively trade, it is better to choose an exchange. If you need to buy or sell a certain amount of coins, a P2P platform with customizable ads will do better. If you have never encountered crypto and want to try it, P2P is also great, because there is no need to go through KYC and wait for an identity confirmation from the exchange. You can register and trade on the same day. The video below has a complete algorithm. You can see details in the video below.