Cryptocurrency. With what started with Bitcoin has evolved into an international phenomenon that is quickly becoming the talk of many communities worldwide. Once familiarizing yourself with the concept of cryptocurrency, the next step is to get your hands on some of your own. How does one get started with purchasing their first Bitcoin?
Assuming that you are not aspiring to be a miner, the only real way to get your hands on some is to purchase it directly. Why not mine? Well, since Bitcoin’s inception in 2009, the mining rewards have been cut dramatically. Getting into it now would require a lot more work than we think it’s worth.
The only other option would be to purchase your Bitcoin and/or other cryptocurrency directly. While the logistics of mining and key distribution may seem overwhelming, purchasing BTC is actually quite simple. This is thanks to the increasing amount of crypto exchanges available online. Some of these exchanges even have physical ATM’s available to purchase your favorite token.
Assuming that you’ve already got your hands on a CoolWallet S, the next step would be purchasing some crypto to store in it.
How do I buy Bitcoin?
In this article, we’ll be covering what we think are the three most convenient ways to purchase BTC. Here’s our list:
- Person to person exchange
- Online exchange
- ATM purchase
How to buy cryptocurrency from a friend
This is perhaps the easiest way to get some BTC. If you have a friend or relative who happens to own some crypto, they can easily send you some in exchange for cash. A great way to value a token is through CoinMarketCap. For example, let’s say you wanted to purchase some USDT, a stablecoin pegged to the US dollar. Simply give your friend $5 in US fiat and they’ll send you 5 USDT in return.
To receive your newly purchased USDT, create an address in the CoolBitX Crypto app and a unique QR code will be available to distribute. All your friend has to do is scan that code to send the USDT directly into your CoolWallet for safekeeping.
How to buy cryptocurrency from an online exchange
Ok, so, maybe you don’t personally know anyone who owns any crypto. In fact, this is more common than you think. This is where online crypto exchanges come into play. There are many to choose from and each has their own unique set of rules and services. However, they all work on the basic principle of exchanging your fiat into crypto. BANXA is an exchange that many of us on the CoolWallet team recommend using. We’ll get into why a little bit further down below though.
Think of it like purchasing an item on Amazon. You select the token you would like to purchase and then pay for it with a credit card. Instead of something physically being shipped to your door, your newly purchased crypto will appear in your online wallet. Your online wallet, or hot wallet, is usually provided by the exchange. Most exchanges also provide a smartphone app where you can view your balances at any time. Purchasing more crypto or transferring crypto can also usually be done with these types of services.
Now we’re not here to argue about whether or not hot wallets are safe, but what we can tell you is that you can never be too secure with your hard-earned investments. It is always recommended to take your crypto off online exchanges and into cold storage. Transferring your crypto from an exchange and into your CoolWallet S is as simple as a QR code scan.
How to buy cryptocurrency from an ATM
In the past few years or so, many exchanges have started to offer ATM services to their customers. The crypto ATM works like a traditional ATM in a sense that money can be deposited and transferred. Bitcoin ATM’s do come with some advantages and disadvantages though.
Convenience and accessibility is the biggest advantage. Having the ability to purchase crypto from a physical machine provides both physical and instant gratification. Many popular retailers now have ATM machines installed on their premises. Some of these retailers even offer Bitcoin purchasing at the cash register. Convenience does come at a price, however, so expect transaction fees to be significantly higher.
Unfortunately though, ATM machines also provide a way for bad actors and criminals to take advantage of their victims. Due to the decentralized nature of cryptocurrency, transfers and balances cannot be traced to a physical location. This allows scam artists to have another method for their victims to pay their ransoms. It is important to know that no government entity or legitimate business will ever ask for Bitcoin payments. Do not send crypto or make any payments to anyone whom you do not personally know. Last but not least, if you do decide to try out an ATM, please make sure that it is provided by a legitimate and widely recognized exchange.
Purchase crypto with your CoolWallet S
There was a reason why we mentioned BANXA earlier! It just so happens that through a recent partnership, BANXA services can now be accessed directly through the CoolBitX Crypto app for all CoolWallet S users. Instead of first purchasing and then taking the extra step to transfer your funds into a hardware wallet, customers can now do everything all within our app. That’s right. Purchasing crypto just got a whole lot easier.
To purchase crypto directly from the CoolBitX Crypto app using your CoolWallet S, you can follow the instructions below.
- Open the app
- Navigate to the Marketplace tab
- Tap Crypto Purchase
- Choose what fiat you wish to purchase with
- Choose what token you would like to receive
In addition to BANXA, customers may also enjoy using the Simplex platform to purchase their favorite crypto. After verifying all KYC, addresses, and credit card information, your newly purchased coin will be sent directly to your CoolWallet S for safekeeping.
The team here at CoolWallet S is proud to have the opportunity to bring such services to our customers. These kinds of features allow for those who are just getting their feet wet with crypto a lower barrier of entry. Making the process of purchasing crypto more streamlined and convenient is also appreciated by even the most seasoned of hodlrs out there.