Bitcoin (BTC) has attracted the attention of thousands of consumers who find it a highly convenient and reliable store of value.
Despite being the oldest digital currency, it is hosted by a secure decentralized blockchain, whose operations are not managed by a central authority.
Moreover, there is a rising trend in the number of individuals and businesses preferring BTC payments over fiat currencies. The demand is due to its immutable transactions and relatively lower charges regardless of geographical location. Also, the Bitcoin’s price is steadily rising and volatility is dropping.
The rush for Bitcoin has led to the establishment of platforms to buy Bitcoin. Let’s have a look at three great places you can purchase Bitcoin in 2021!
Cryptocurrency Exchanges
These are online platforms where buyers and sellers of digital assets can trade. A user can exchange cryptocurrencies with fiat currency or other crypto assets depending on the platform’s services.
A buyer who wants to buy Bitcoin first creates an account on the platform. The user may be required to submit personal identification information on some exchanges whose operation policies demand “Know-Your-Customer”(KYC) procedures.
The popular methods for paying for the Bitcoin purchase are debit cards, wire transfers, credit cards, bank accounts, and exchanging other cryptocurrencies for the king crypto. These kinds of transfers usually attract transaction fees. Coinbase, Binance, and Kraken are some of the leading exchanges.
Bitcoin Brokers
A user looking forward to buying Bitcoin can also do so through brokers who are either companies. Most of them act as intermediaries between crypto exchanges and users or serving as crypto on-ramps. Most brokers only allow a one-way transaction; users can only buy not sell. However, the brokers charge a premium on services offered.
Like the crypto exchanges, a user has to enroll on the platform first to consume their services.
Bitcoin ATMs
Bitcoin “buying” services are now available on specially designed Bitcoin Automated Teller Machines (ATMs). Bi-directional ATMs not only provide a “buying” option but still have the “sell” option.
The payment options for the purchases are debit cards and even cash. Some ATM providers, though, would require the buyer or seller to have registered for an account to be able to make a deposit or withdrawal.
Bitcoin ATMs machines use the internet to connect to a crypto exchange, offering a convenient way of buying Bitcoin. Though they are safe, the transaction fees are relatively higher compared to the crypto exchanges.
Summing Up
The three alternatives are great ways to buy Bitcoin. However, the preferable choice for any user hinges on convenience, trading fees, and anonymity.
The ATM option is not the best when it comes to privacy. Some machines will require you to upload identification details for some enrolment before they can process your request.
Exchanges and brokers provide the opportunity for comparing the varying prices of Bitcoin though the former provides trading facilities unlike the latter. However, security and convenience should, more often than not, influence your choice.
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