Although Bitcoin is a relatively new innovation, it has already left its mark on the market. This virtual currency has gained many followers and became one of the most sought-after products in the world. Additionally, it became well-known for the safety and cost-effectiveness of its transactions.
If you would like to join the crypto enthusiast community but do not know where to start, we've got you covered. In this article, we list some of the most popular ways to buy Bitcoin. Whether it's using the leader among cryptocurrency exchange platforms like Coinbase or more beginner-friendly sites like eToro, there are many approaches you can take to get some Bitcoins in your virtual wallet. Let's get started.
Cryptocurrency Exchanges
Cryptocurrency exchanges are among the most popular ways to buy Bitcoin. These platforms work like traditional stock exchanges, where buyers and sellers come together to trade. However, they operate in virtual currency markets. In this case, the buyer can exchange the original fiat currency for a cryptocurrency token, which is usually Bitcoin.
The first cryptocurrency exchange platform was the now-defunct Bitcoinmarket, which launched in 2010. Since then, many more have been founded, with some of the most popular being Coinbase, Poloniex, Bitstamp, and Kraken.
All these platforms follow a similar approach: customers deposit funds from their bank accounts, credit cards, or cryptocurrencies, such as Ether or Litecoin. Then, the platform automatically converts the fiat currency into crypto tokens for the customers. The final step is sending the tokens to the customers' wallets.
You can learn more about some of the best exchanges to use your credit or debit card here https://www.buybitcoinworldwide.com/credit-debit-card/.
Despite their popularity, cryptocurrency exchanges do come with some downsides. Firstly, they charge exchange fees for each transaction. This means that you have to pay extra money to use these platforms. Additionally, there are some security issues with these platforms. Some of them have been hacked in the past, which led to stolen funds from users' accounts. Finally, they are vulnerable to government regulations and may be forced to shut down if found not compliant with laws and regulations.
Brokers
Cryptocurrency brokers are not much different from regular stockbrokers. They allow their clients to trade on the digital currency market without having to own any of the assets themselves.
However, unlike regular brokers, these ones focus on cryptocurrency trading rather than traditional stocks or shares. Therefore, they don't have a public stock exchange that people can use to exchange coins for fiat or other cryptocurrencies. Instead, they have private markets where their clients can exchange tokens for other tokens or fiat currencies for cryptocurrencies.
Among the most popular brokers that offer trading with cryptocurrencies are eToro and Plus500. Both companies provide platforms where customers can buy and sell various cryptocurrencies while benefiting from additional features such as social trading and copy trading. We discuss these two platforms in more detail below.
eToro
eToro is an online brokerage platform that allows customers to invest in various financial instruments, including stocks, commodities, and cryptocurrencies. It was established in 2007 as a social trading broker that offers copy trading and social investment opportunities for its members. However, it has recently expanded its services to include cryptocurrencies and now offers a wide range of options for traders willing to invest in virtual currencies.
Plus500
Plus500 is another online brokerage platform that allows individuals to open an account and start trading in cryptocurrencies such as Bitcoin, Ethereum, XRP, and Litecoin. The company was established in Israel back in 2006 as a CFD broker and expanded its services over time to include forex trading and binary options trading as well as cryptocurrencies.
Cryptocurrency Marketplaces
Bitcoin and other virtual currencies have changed the way we think about money and how we exchange goods and services through online marketplaces like eBay or Craigslist. Therefore, it's only natural that new types of online marketplaces appear that accept cryptocurrencies as payment methods instead of fiat currencies. These marketplaces are called crypto marketplaces, and they allow people to trade all kinds of products and services for digital coins and tokens instead of using cash or credit cards. Many of these sites also support peer-to-peer (P2P) payments, which means buyers and sellers can negotiate direct deals without a middleman involved in the transaction process.
The first marketplace that accepted Bitcoin as a payment method was the notorious Silk Road, which was established back in 2011. Although it got shut down shortly after by US authorities, it paved the way for other P2P marketplaces to emerge, serving a wider range of customers in different industries around the world.
In Conclusion
There are many ways to buy Bitcoin, each with its own pros and cons. The right way for you will depend on your needs and the risks that you're willing to take. However, we can say one thing for sure buying crypto is an exciting opportunity! We hope this article has helped clarify some of the finer points about buying Bitcoin.
