How to Buy Cryptocurrency with Low Fees in 2020 | Detailed Instruction from Safetrading
Many crypto newcomers think that it is very easy to earn with virtual money and want to make a good investment of everything they have from the beginning.
But the most important is to exchange fiat money to crypto wisely, don’t be scammed by the unchecked service, and don’t pay high fees.
Today Safetrading will tell you about all the types of services that can help you to buy cryptocurrency.
Let’s go!
P2P Services
Those services are the easiest, to my mind, but have some pitfalls you should know about.
We talked about Paxful and LocalBitcoins here, and those services are called P2P services.
When you visit such a website, you will see a lot of offers to sell or buy a cryptocurrency at a different exchange rate.
The thing I really like about these exchanges is the variety of payment methods where to buy cryptocurrency - PayPal, credit cards, debit cards, wire transfers, etc., so you can definitely find something for you!
Let’s imagine you decide to use the bank transfer to buy cryptocurrency with credit card. You need to remember that there is the risk your payment will be declined, especially if you want to buy 1 Bitcoin or more.
What about fees?
The fees you will pay depend on the payment method you choose. For example, if you buy crypto with the credit card, the service will take 2%-3%.
Cryptocurrency Exchanges
When we discussed how to buy cryptocurrency with a credit card, I told you that buying cryptocurrency with the cryptocurrency exchange is one of the best options.
All the exchanges have the verification process, and you can buy Bitcoin with credit card instantly only after you succeed with it.
If you want to buy Bitcoin online with the credit or debit card, you can use Binance. If you want to know how to buy cryptocurrency with PayPal, I can recommend you use Coinbase. These two exchanges are safe and legit, so you won’t be scammed.
Where to store crypto after depositing?
Even the most experienced traders and developers advise users not to store all the assets at the cryptocurrency exchange account. You can leave there a sum you want to trade with, and the rest of the money you can transfer to the hardware wallet or the Bitcoin wallet with the cold storage.
Exchanges are legit, of course, but there is always the possibility of a cyber-attack or any problem in the company. And as a result, users can lose their money.
Cryptocurrency Wallets
My favorite!
A lot of cryptocurrency wallets, especially mobile and online ones, offer to buy cryptocurrency with the debit or credit cards. This method is quite easy to use, but the security level of every wallet is different.
Of course, the first thing you need to do before buying crypto is to check the wallet.
Why?
Because you are going to give it your private data!
That is why I advise you to work with non-custodial wallets only! They don’t store your information at their servers - it is stored only on your mobile phone or laptop.
If you want to use the wallet to buy Bitcoin online, you need to know that you won’t be able to buy cryptocurrency with PayPal there - only with the credit card.
Applications
We didn’t talk with you about applications for cryptocurrency purchasing. There are a lot of such apps that allow you to buy or sell cryptocurrency right on your mobile phone.
For example, there is one Swiss startup Aximetria that allows you to buy virtual assets from your bank account and sell them as well. The same method is used by the service we talked about in this article - IndaCoin.
Every app has its own fees, and you need to check them before starting to work with this or that service.
At the same time, you need to consider the safety of this service. It is better to pay higher fees for the safe service than to pay low ones and use the unknown app.
Private Exchanges
Actually, the easiest and the most understandable (and the riskiest one) method is to exchange the assets during the private meeting.
If you want to buy cryptocurrency from your friend or colleague, it is good because this person is trusted. And if you found a person in the Internet forum or somewhere else, this could be risky and you should be aware of the pitfalls.
I should say, it is better to avoid this method because there is the possibility of losing your money.
Cryptocurrency ATMs
I think you heard about Cryptocurrency ATMs despite them not being present in every city.
A Bitcoin ATM is the same cash machine we use to withdraw USD or EUR but for cryptocurrency. The only difference is that we can’t get Bitcoins physically.
If you don’t know if it is possible to find the ATM in your city, you can use this map and check.
Below I will tell you how to get cryptocurrency using the ATM:
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To find the Bitcoin ATM using the map above.
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Go to the ATM and verify your identity (yes, some ATMs ask to do this).
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Some ATMs request mobile phones. If yours is like this, you will need to enter it.
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The ATM will send you the code and you will need to enter it as well.
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Then you will need to enter your Bitcoin wallet address if you have it. If you don’t have it, the ATM will make it for you.
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Deposit your money to the ATM.
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Then, the ATM will send the money to your cryptocurrency wallet.
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Don’t forget to take the receipt!
Remember, that ATMs take high fees - up to 10%, so if you want to invest $1,000 and buy cryptocurrency, you can pay around $100 fees.
Final Thoughts
Every year there are more and more services where to buy cryptocurrency.
Now it is, of course, easier to buy Bitcoin online than it was 5-6 years ago.
So, which way to buy cryptocurrency is the best?
Maybe this is a crypto exchange like Coinmama, Coinbase, or Binance to buy Bitcoin with PayPal?
Or the P2P service like LocalBitcoins?
Or you managed to find the Bitcoin ATM in your city and want to use it?
The answers to those questions depend on your wishes.
If you have the Bitcoin ATM nearby, I can say that it is the best method if you are ready to pay high fees.
If you don’t want to verify your identity and want to buy cryptocurrency anonymously, you will need to think about P2P services or mobile crypto wallets.
And if it is okay for you to share the personal data, you can use Binance or Coinbase Pro.
I hope that our review will help you to find the best service and buy cryptocurrency safely!