Cryptocurrencies provide an excellent way of making money and growing returns. For example, Bitcoin price has moved from below $5 in 2009 to over $40,000 today. Similarly, Ethereum has jumped from below $10 to over $3,000. In total, cryptocurrencies have moved from nowhere to become an asset class worth over $2 trillion. In this article, we will look at the easiest was to buy cryptocurrencies.
Using digital wallets
Online wallets are popular financial products that enable people to save, send, and receive cash from their loved ones or business partners. These wallets are popular because of how easy they are to use and the fact that they mostly have low fees.
The number of digital wallets has been in a strong uptrend as the fintech revolution continues. Some of the most popular wallets are PayPal, Cash App, Skrill, Neteller, Revolut, and Venmo among others.
As part of their strategies, many online wallets have now made it possible to buy cryptocurrencies inside their ecosystems. The goal is to simplify how people access financial services and to also make money doing that.
Indeed, cryptocurrencies have become pivotal to Cash App’s business. For example, Cash App generated over $2 billion of revenue from cryptocurrencies in the fourth quarter of 2021.
These wallets offer one of the easiest ways to buy cryptocurrencies. For example, in 2021, PayPal introduced a way to buy, save, and send a select number of cryptocurrencies in its platform. Today, American and Britons can easily use the platform to buy Bitcoin, Bitcoin Cash, Ethereum, and other coins directly using PayPal and Venmo.
The process of buying Bitcoin with PayPal is easy. First, you need to have an account with PayPal. Second, select the cryptocurrency that you want to buy and the amount you want to spend. Second, you should execute the trade. PayPal will then deduct the cash that you have from your account. Alternatively, it will directly make the purchase using your linked bank account.
The process is similar with other online wallets like Cash App. You just need to select the coin you want to buy and then execute the trade.
There are several benefits of using these apps to buy cryptocurrency. First, the process is easy and it takes a few seconds. Second, most apps don’t charge a fee to execute the trade. Finally, they are safe options. The only disadvantage is that these apps don’t have a large selection of coins.
Using cryptocurrency exchanges
The other easiest way to buy cryptocurrency is through a centralized exchange. An exchange is a company that provides different cryptocurrencies for people to trade. In most cases, exchanges provide a website and mobile applications that let people buy coins. They also offer other tools that help them to make better and more informed choices.
Cryptocurrency exchanges work in a relatively similar way. They provide a marketplace where one can go and buy coins. After buying the coin, one can easily save them in their online wallets. When needed, a person can then convert their coins into cash and withdraw to their online wallets or bank accounts.
In addition, it is possible for people to move their cryptocurrencies from exchange to their cold wallets in a few steps.
The crypto exchange industry has become significantly saturated. CoinMarketCap tracks 511 exchanges from around the world. In total, these exchanges help to move cryptocurrencies worth over $100 billion every day. Some of the biggest exchanges in terms of volume are Binance, Coinbase, KuCoin, Huobi Global, Gate, and Crypto.com.
It is easy to buy cryptocurrency using an exchange. First, you need to find a credible exchange that guarantees the safety of your funds. In most cases, we recommend that you focus on popular exchanges like Binance and Coinbase instead of the smaller ones that are unknown. You can read our eToro review, CEX review, and Binance review.
Second, you should create your account by providing your name and email address. After this, to comply with the law, many exchanges will seek to verify your account by confirming your location.
In the next step, you will need to select a cash deposit option. Many companies allow you to deposit your cash using a number of options like PayPal, credit and debit card, Neteller, and wire transfer. You can now buy your coins after completing your deposit process. Wire transfers take a longer period while card transactions are instant.
Using exchanges like Coinbase, Binance, and eToro is recommended because they are safe and they provide more coins. They also provide more solutions like staking, leverage tokens trading, and perpetual futures trading.
Using a peer-to-peer exchange
Another easy option for buying cryptocurrency is to use a peer-to-peer exchange platform. These are companies that provide a platform where people can buy and sell cryptocurrency among themselves in an easier manner. A P2P exchange provides a platform that ensures safety.
They work in an easier way. After creating and verifying your account, you will select whether you want to buy or sell a coin. When buying, you will see numerous people who are selling coins and their prices. Select your preferred one and then make a payment to them directly. After they receive their funds, the coins deposited in the Escrow will be transferred to you.
There are several reasons for using a P2P exchange. First, they are easy to use. Second, you can use arbitrage by buying a coin at cheap prices and then selling it instantly at a higher price. Third, you can use your preferred option to complete the transaction. Examples of P2P payment platforms are Paxful, Local Bitcoins, and Binance P2P