A very common way to buy your first cryptocurrency is via a centralized cryptocurrency exchange. This type of exchange will allow you to use fiat currency (like Dollars, Euros, Pounds,…) to buy various types of coins.
Each exchange usually has a limited offering of bitcoin and/or various altcoins so the exchange you use will depend on the currency that you want to buy. Many of these exchanges will allow you to link your bank account to the exchange. This will make it easier to transfer your fiat currency to the exchange to purchase cryptocurrency.
Some exchanges are regulated and others are not. A very limited example of just a few dependable exchanges are:
There are also 100s of other exchanges around the world – Some are also very dependable, reliable and safe, (like our short list above). But not all exchanges are safe and not all allow you to use fiat currency. So do your homework before starting an account with an exchange. Here are a few questions to ask:
- Trading and redemption fees.
- How they keep your currency safe?
- If you can use fiat to buy coins.
- How can y you transfer money in and out?
- What other coins can you buy on their exchange?
- Can you use credit card?
- Are funds under management insured (such as FDIC in the USA)
After you make your first purchase then you can continue to make more purchases on the same exchange, or you can transfer your currency to some other exchange. You can also use your new cryptocurrency to buy different currencies without the need to use your fiat currency again. Furthermore, you can now trade your cryptocurrencies on peer-to-peer networks to buy even more different kinds of altcoins. Very commonly people will buy bitcoin by using their fiat currency on a centralized exchange. Then they will trade their bitcoin for other altcoins. Bitcoin is often used as a “gateway” coin to buy other coins.
Coins can also be purchased from some special bitcoin dedicated ATM machines. Put your fiat currency into the machine and cryptocurrency will be transferred to your address.
Other ways to get cryptocurrency without buying it is to be paid for your work in cryptocurrencies.
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