Cryptocurrencies offer an excellent way to make money and increase returns. Bitcoin price, for example, has gone from under $5 in 2009 to over $40,000 today. Likewise, Ethereum has jumped from below $10 to above $3,000. Collectively, cryptocurrencies have grown from nothing to an asset class worth over $2 trillion. In this article, we will look at the easiest way to buy cryptocurrencies.
Use a digital wallet
An online wallet is a popular financial product that enables people to save, send and receive cash from their loved ones or business associates. These wallets are popular because they are easy to use and their fees are mostly low.
The number of digital wallets has been on a strong upward trend 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 strategy, many online wallets can now buy cryptocurrencies within their ecosystem. The goal is to simplify the way people access financial services and make money from it.
In fact, cryptocurrencies have become the key to Cash App’s business. For example, Cash App generated over $2 billion in revenue from cryptocurrencies in Q4 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 selected amounts of cryptocurrencies on its platform. Today, Americans and Britons can easily use the platform to buy Bitcoin, Bitcoin Cash, Ethereum, and other coins directly with PayPal and Venmo.
The process of buying Bitcoin with PayPal is simple. First, you need to have a PayPal account. Second, choose the cryptocurrency you want to buy and the amount you want to spend. Second, you should execute the transaction. PayPal will then debit your account for your cash. Alternatively, it will directly use your linked bank account to make purchases.
The process is similar to other online wallets like Cash App. You just need to select the coins you want to buy and execute the transaction.
There are several benefits to using these apps to buy cryptocurrencies. First, the process is simple and only takes a few seconds. Second, most applications do not charge fees for executing transactions. In the end, they are safe bets. The only downside is that these apps don’t have a huge selection of coins.
Use a cryptocurrency exchange
Another easiest way to buy cryptocurrencies is through centralized exchanges. An exchange is a company that offers people to trade different cryptocurrencies. In most cases, exchanges offer a website and mobile app that allow people to buy coins. They also offer other tools to help them make better, more informed choices.
Cryptocurrency exchanges work relatively similarly. They provide a marketplace where coins can be purchased. After purchasing coins, they can easily be kept in their online wallet. When needed, people can convert their coins into cash and withdraw to their online wallet or bank account.
Also, people can transfer their cryptocurrencies from exchanges to their cold wallets in a few steps.
The cryptocurrency trading industry is significantly saturated. CoinMarketCap tracks 511 exchanges from around the world. Collectively, these exchanges help move more than $100 billion worth of cryptocurrencies every day. Some of the largest exchanges in terms of trading volume are Binance, Coinbase, KuCoin, Huobi Global, Gate, and Crypto.com.
Buying cryptocurrencies using exchanges is easy. First, you need to find a reliable exchange that will keep your funds safe. In most cases, we recommend that you focus on popular exchanges like Binance and Coinbase rather than the lesser known smaller exchanges. 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, in order 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 the cash deposit option. Many companies allow you to deposit cash using a variety of methods including PayPal, credit and debit cards, Neteller, and wire transfers. You can now buy your coins after completing the deposit process. Wire transfers take longer, while card transactions are instant.
Exchanges like Coinbase, Binance and eToro are recommended as they are safe and offer more coins. They also offer more solutions like staking, leveraged token trading, and perpetual futures trading.
Use peer-to-peer exchange
Another easy option for buying cryptocurrencies is to use peer-to-peer trading platforms. These companies provide a platform where people can buy and sell cryptocurrencies in an easier way. P2P exchanges provide a platform to ensure security.
They work in a simpler way. After creating and verifying your account, you will choose whether you want to buy or sell coins. When buying, you will see many people selling coins and their prices. Choose your favorites and pay them directly. Once they receive the funds, the coins deposited in Escrow will be transferred to you.
There are several reasons to use P2P exchanges. First, they are easy to use. Second, you can use arbitrage by buying coins at a cheap price and then immediately selling them at a higher price. Third, you can use your preferred options to complete the transaction. Examples of P2P payment platforms are Paxful, Local Bitcoins and Binance P2P