The digital currency craze is here to stay. Aside from individual investors, cryptocurrency has been attracting significant investors from across the world – this despite a bear market. In 2018, the crypto market shed 85 percent with Bitcoin dropping 83 percent of its value. But even with a marked slowdown, the number of new users has doubled and cryptocurrency adoption has increased according to a study published by the Cambridge Centre for Alternative Finance.
By the end of 2018, the number of blockchain wallet users worldwide has reached nearly 32 million. The figure shows a silver lining and positive sign for the long term, especially following the dramatic decline of cryptocurrency prices. It could also signal an imminent recovery.
For those planning to invest in Bitcoin, the current crypto market condition presents a good entry point.
Perhaps, you’re wondering where to buy Bitcoins. There are three cryptocurrency marketplaces where you can buy Bitcoins.
Exchanges
Bitcoin exchanges are more like stock exchanges, such as the NASDAQ Stock Market or the New York Stock Exchange. These platforms enable you to buy and trade Bitcoins directly with other crypto traders. The cryptocurrency exchange determines the price and matches traders. It serves as a mediator; hence, the seller and buyer don’t interact with each other. Each cryptocurrency offers features that are tailored to its users. Some exchanges can also serve as cryptocurrency wallet where you can store your Bitcoins. For beginners, make sure you choose an exchange with a user interface that is easy to understand and navigate.
Bitcoin exchanges such as Wunderbit, lets you buy bitcoin with a debit card. Other exchanges lets you buy bitcoin with a credit card, bank account or convert cash to Bitcoin and vice versa. There are numerous Bitcoin exchanges that you can choose from. When comparing these exchanges, you want to consider features such as security, transaction fees, and user interface.
Brokers
You can also buy Bitcoin from brokers. Bitcoin and altcoin brokerage is an interesting development in the crypto market. With Bitcoin brokers, you don’t need to go through the cumbersome registration and verification process common with crypto exchanges. The processing time with Bitcoin exchanges often lasts for days to weeks to complete. As a result, you may not be able to buy Bitcoin at a good time.
Compared to exchanges, Bitcoin prices offered by brokers are less subject to price volatility. With an exchange, traders need to wait for buy or sell orders to match before a transaction is complete. Bitcoin brokers sell or buy Bitcoins at a fixed price sans haggling.
Although broker trades charge premiums between 5% and 10%, this is a better deal especially if you’re buying small amounts. Brokers also support other forms of payments, including debit and credit cards, and even Paypal. Brokers offer a convenient and quick manner for Bitcoin investors. Hence, brokers are among the best option for beginners. The only downside with brokers is that sometimes they might be unable to fill in buyer or seller demands.
Localbitcoins is a popular place where you can find Bitcoin brokers within your area. The platform even enables users to check the profile of the trader. Other Bitcoin brokerage platforms include eToro, Swissquote, IG, and Think Markets.
Peer-to-Peer (P2P) Directories
In P2P Bitcoin trading, investors buy and sell Bitcoin directly between each other. The transaction doesn’t run on a matchmaking algorithm or any third-party. So, when purchasing Bitcoins through P2P directories, you will need to look for a seller that offers your desired amount. It is advantageous if you’re looking for reasonable prices. But the downside of P2P directories is the risk of non-payment, especially that the transactions lack a matchmaking algorithm or third party. Frequently, traders can find the best deals on P2P markets.
Now that you know where to buy Bitcoins, next step is to decide which exchange or broker to use. There are many options for you to choose from, but not every platform or service is the same. Be sure to compare and evaluate each provider. During your search, some essential things to consider include security, verification, wallet service, payment method, and transaction fees.
