If you want to buy a cryptocurrency – such as Bitcoin – you’ll need to find a willing seller and you’ll need a digital wallet so that you can store your crypto. While transactions are all recorded on Bitcoin’s blockchain, there is no way to buy it without going through an intermediary or – alternatively – organising a purchase through a peer-to-peer transaction.
There is no simple solution to this. It is very challenging to opt out of a third party being involved and it all boils down to how much you trust that third party.
One way to avoid an exchange is by performing a peer-to-peer transaction which is the core idea behind Bitcoin’s invention in 2009. Platforms such as LocalBitcoins match buyers and sellers, similar to Craigslist for digital currencies.
Where Are The Best Places To Buy Cryptocurrencies?
Financial Apps
Many financial apps – for example PayPal and Venmo – now give you the opportunity to trade cryptocurrency.
PayPal makes it very easy to directly buy or sell bitcoins utilising the same app that you’ve come to put your trust in regarding your online payments. You’ll pay $0.49 for trades that involve less than $5 and the fees go up from there. Trades that involve amounts between $200 and $1,000 cost 1.8 percent, while those above $1 000 come in at 1.5 percent. There’s a spread markup on trades however you won’t pay a fee for holding cryptocurrency in your account. You can trade as little as $1 at a time. Also, Ethereum, Litecoin and Bitcoin Cash are tradable here.
Venmo charges the same fees as it’s owned by PayPal.
eToro
eToro is a multi-asset brokerage and social investment company which has 10 offices worldwide, including centres situated in the US, UK, Israel, Cyprus and Australia.
eToro’s platform enables both manual and social investing and is available both on www.eToro.com and the eToro mobile app.
For manual investing, eToro offers a wide selection of stocks, currencies, commodities, cryptoassets, ETFs and indices via its own innovative investment platform. Utilising the professional tools and analyses on eToro, people can track and invest in a variety of financial instruments.
Coinmama
Coinmama was founded in 2013 with the aim of streamlining the way that people buy Bitcoin (BTC). Since then, they have served more than 3 400 000 users in 190 countries. Today, Coinmama users are able to buy Bitcoin and Ethereum utilising a credit card, debit card, or wire transfer from their bank accounts. Also Bitcoin can be sold in select markets.
Trading Apps
You will be able to get a few bitcoins with no direct commission by utilising a trading app such as Webull or Robinhood, although you’ll end up offsetting it with a spread markup.
Robinhood takes no commissions however it does charge a spread markup, the precise cost of which it is not revealed. You’ll be able to purchase bitcoins directly and will have access to other digital currencies, as well, a feature that -to-use platform.
Webull give you the opportunity to trade more than 25 cryptos, including Bitcoin. You’ll pay a spread markup of 1 percent on each transaction.
These are just examples of what’s on offer. However, if you prefer the idea of an exchange and want to find those that come recommended by the experts, reading cryptocurrency exchange reviews at trusted sites is your best course of action.
