How to buy cryptocurrency?
The first steps in the world of cryptocurrencies are always complicated and beginners quickly have to choose how they will buy their first asset. There are different options available to meet specific needs and investor profiles. It is possible to have pure peer-to-peer exchanges, to use specialised marketplaces, or to use facilitators such as Coinhouse. We look at the characteristics of these different services.
The first marketplaces for Bitcoin started in 2010. They provide an interface that connects buyers and sellers of cryptocurrencies. In exchange for this service, they take a commission on each transaction. They also play a role in preserving funds since they keep the client cryptocurrencies but are vulnerable to hacking.
Specialised marketplaces provide an interface that connects buyers and sellers of cryptocurrencies and take a commission on each transaction.
These marketplaces are recommended for experienced users. The user must place his buy and sell orders, be able to read an order book and be careful to position himself correctly. It is preferable to have knowledge of technical analysis to understand a minimum of market movements and to know how to place orders to protect your positions.
The advantage of marketplaces is their low cost. The disadvantage is a minimum customer support and the lack of personalised help. The only available mean of payment is usually the bank transfer, for those that allow exchanges in fiat currencies. On many of these marketplaces, no means of payment is accepted because they only allow crypto to crypto exchanges.
Cryptocurrencies allow payments without third party intermediaries and can be exchanged on a peer-to-peer basis. It is possible to agree with an individual on a buy or sell, just as it would be possible to agree on a product traded on Amazon for example. Websites such as localbitcoins exist for this purpose.
Cryptocurrencies allow payments without third party intermediaries and can be exchanged on a peer-to-peer basis
While this method was widely used in the early years of Bitcoin, it is now less popular in countries offering access to professional services. In addition to the often prohibitive commissions, it is difficult to know who you are dealing with and the question of security arises.
Peer-to-peer trading is still common in countries such as Venezuela, where volumes traded via localbitcoins have exploded in recent months due to the country’s hyperinflation. The payment methods accepted vary according to the interlocutor and can be relatively complex to use.
The facilitators like Coinhouse
Finally, the third category is facilitators, whose best example is Coinhouse. Unlike marketplaces, facilitators do not put two different clients in contact with each other, they are the direct contact of the client.
At Coinhouse, our goal is to make it a point of honour to provide customer support with high-end support and advisors answering any questions about the vast world of cryptocurrencies. We can also guide you through your first steps, including supporting you in the installation of secure portfolios for your cryptoassets. For people who want to go further and benefit for personalised support, discover our Premium services.
As a facilitator, it is important for us to have an online platform that is very easy to use, especially to buy bitcoin. We also welcome our customers in our ”store” located at 35 rue du Caire in Paris. Bank transfers and credit cards are available for transactions.
In a nutshell, there are several ways to buy cryptocurrencies from fiat currencies. Direct peer-to-peer is not very easy, especially in countries like France. The most important aspect is to choose, according to your needs and knowledge, between specialised marketplaces and facilitators like Coinhouse.