Cryptocurrencies: everything you need to know
Johannes Röll
20 / December / 23
Visitors: 589
While the stock market is overbought, traders are trading commodities and cryptocurrencies because these markets are in a strong uptrend and there is plenty of room for higher price levels. In addition, rising inflation points to the need to invest in assets such as bitcoin, metals, and various commodities.
How to buy cryptocurrencies?
You can use cryptocurrency ATMs, cryptocurrency vouchers, cryptocurrency exchange websites or regulated trading brokers to buy cryptocurrencies. If you want to buy and store cryptocurrencies, use cryptocurrency exchange sites such as Coinbase. If you want to trade cryptocurrencies, use CFD brokers such as Avatrade or regulated brokers.
While the popularity of cryptocurrencies might suggest that buying bitcoin is a relatively simple procedure, until recently this was not the case. However, the options are gradually expanding so that today you can choose the way you buy depending on your habits. Moreover, some of the options available today don't even require internet access.
Buying cryptocurrency at ATMs
As cryptocurrency grows in popularity, you can expect ATMs to become the primary way to buy bitcoin. If you want to buy bitcoins without fear of data misuse, you can do so at many ATMs around the world. However, depending on the investment, a fee of two to eight percent over the standard price may make you think twice before buying bitcoin at an ATM. By simply scanning the QR code on your mobile wallet after depositing money into the ATM, you receive a confirmation with codes and instructions to transfer the bitcoin to your wallet. The first such ATM was installed in Belgrade in 2018 on King Milan Street. You can find the nearest ATMs using the service coinatmradar.com.
Buying cryptocurrency vouchers
Vouchers are another easy way to buy bitcoin and other cryptocurrencies. When you purchase a voucher, you receive a certain amount in cryptocurrencies. Some exchanges accept vouchers, so by creating an account on one of them, you can use a code to convert the voucher into bitcoin. In addition, you can find many services on the Internet that sell vouchers on favorable terms. By purchasing cryptocurrencies in this way, you can save money compared to other ways of purchase. In addition, vouchers are a good way to save your bitcoins.
Buy cryptocurrency from a cryptocurrency exchange
Exchanges are the third way to buy bitcoin. The advantage of buying on an exchange is the choice of trading options. Different types of exchanges cater to different categories of customers. If you need an advanced platform for regular trading, you will find many solutions online. On the other hand, those who are interested in quick and simplified one-off purchases are also offered several options. These exchange platforms can be differentiated according to several criteria: security level, payment options, maximum purchase limit, commission fees, etc. In terms of access, most exchanges can be accessed from portable and desktop devices, which makes shopping much easier. The main problem with shopping at exchange bureaus is the bureaucratic process involved in providing a lot of information about yourself as a customer. The activity of exchange bureaus is regulated by the state. In addition to a lot of personal information, they usually ask the customer to link their bank account to the exchange bureau account. Some of the well-known exchanges include Bitfinex, BitFlyer, BitStamp, Kraken, Coinbase, Gemini and itBit. It is important to know that buying and exchanging are not the only services offered by exchanges. You can also open a wallet through them. While this option may initially seem convenient because it shortens the process, it comes with many risks. Hackers often attack exchange bureaus because their level of security is not comparable to that of a bank.
Buying cryptocurrencies without intermediaries
For those who do not want to share information about themselves, buying cryptocurrencies without intermediaries can be a way out. Where can you find someone to collaborate with? LocalBitcoins is one site dedicated to this type of transaction. These types of transactions are done in public places today. Another way is to meet with the bitcoin community, where you can usually trade bitcoins and also exchange knowledge. Beware of indirect purchases. Since the number of scammers in cryptocurrency trading has increased, you need to take many precautions. If you don't want to meet a second party, it is possible to go through the online purchase process, but there is an increased risk of fraud. Sellers often prefer non-refundable payments because of possible losses due to bitcoin price changes, which increases your risk.
Bitcoin Atm compared to Coinbase
Bitcoin ATM provides a higher level of transaction anonymity than Coinbase because users use cash and leave minimal personal information. Bitcoin ATM is much faster than the online cryptocurrency exchange Coinbase. However, Bitcoin ATM is not widespread enough globally, so Coinbase and the online exchange are more accessible than Bitcoin ATM.
How to become a crypto trader?
To become a crypto trader, you can use cryptocurrency exchange portals, stockbrokers or CFD brokers. The best solution is to use CFD brokers because you don't need a lot of capital, opening and closing trades is instant and commission-free, and you can withdraw money instantly the same day.
As a trader, you want to deposit quickly, withdraw money quickly, exit a trade quickly and enter a trade quickly. This is why CFD brokers are the best. However, if you want to make an investment and hold bitcoin or other cryptocurrency for years, in which case.
Do I need a license to trade bitcoin?
No, you do not need a license to trade bitcoin or any other cryptocurrency. If you manage any assets (stocks, currencies, cryptocurrencies) using your own funds, you do not need a license. However, if you trade assets as a trader for a financial firm, you will need a license, such as a FINRA license.
Keep in mind that if you decide to trade cryptocurrencies with your own money with your preferred broker, it is standard procedure to identify yourself. In this case, you will need to provide documentation as regulated brokers need to identify traders.
Johannes Röll
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer
