How to buy cryptocurrency as a new trader

To a new trader, the cryptocurrency industry can seem like a complicated space filled with technical jargon. While it’s helpful to have some sort of fundamental understanding in the financial and tech space, stepping into the world of cryptocurrency without prior experience doesn’t need to be daunting. If you’re looking to invest in Bitcoin or trade in the cryptocurrency market, making that first move can be as easy as the click of a button. Read this to explore the different ways you can buy cryptocurrency as a new trader.

Buying Bitcoin on a cryptocurrency exchange

One of the most popular ways to first purchase cryptocurrency is through a cryptocurrency exchange. There are some platforms that are designed for experienced traders, but many have user-friendly options available for first-time traders. 

A cryptocurrency exchange is a platform through which you can exchange cryptocurrencies for fiat (national tender), fiat for cryptocurrencies, and cryptocurrencies for other cryptocurrencies - depending on how many cryptocurrencies the platform supports. The more advanced you get in your trading, the more you will learn how to explore different platforms and sophisticated trading styles and concepts.

Through Bitcoin and crypto automated teller machines (ATMs)

Bitcoin ATMs function very similarly to standard ATMs in the manner of depositing cash into your bank account. Through a Bitcoin ATM, you can put cash into the dedicated machine and buy Bitcoin, which is subsequently sent to your online wallets. In recent years, Bitcoin ATMs have grown in popularity and there are machines across the world for users to buy cryptocurrency.

Generally, there is a purchase fee and a conversion fee involved in using a Bitcoin ATM. Both fees are considered to be relatively high compared to alternative solutions: The average cost charged at Bitcoin ATMs around the world is 8.4% of the buying price and 5.4% of the amount sold.

Peer-to-Peer (P2P) transactions 

One of cryptocurrency’s most unique properties is how easy it is for users to interact with one another in the industry without the need for an external party. Basically, the technology-based asset is designed to offer peer-to-peer exchanges, creating a way for users to send tokens directly to one another. There are some platforms that help facilitate safe transactions between peers, where users can submit requests to purchase or sell their cryptocurrency like Bitcoin, along with details on prices and payment options, after registering an account. 

Peer-to-peer exchanges generally don’t offer the same sort of anonymity that decentralized exchanges can, but they can give users the option to compare prices. 

Invest in businesses involved with cryptocurrencies 

It is possible to gain exposure to the cryptocurrency market, without buying cryptocurrency directly by means of investing in businesses that use cryptocurrency or blockchain technology. These are typically financial-based service businesses or in the tech industry and are governed by the regulation that traditional finance rests on. Some publicly traded firms that use crypto or are involved in the cryptocurrency industry are:

PayPal

PayPal is one of the most well-known financial service providers for online purchases and transferrals. The platform has expanded to include allowing customers to buy, sell, and send cryptocurrencies to other users.

Nvidia 

Nvidia designs, produces, and sells graphics processing units (GPU) which are involved in creating computers that can run complicated software. This includes the systems needed to mine Bitcoin, making the tech company an indirect line to cryptocurrency.

Square 

Like PayPal, Square is a payments service provider designed for small businesses to accept payments online. The company’s Cash App also allows users to buy, sell, and hold their cryptocurrency.

At the beginning of 2021, Square announced that it had purchased Bitcoin as part of its holdings and had 5% of its balance sheet made up of cryptocurrency. 

Buying Bitcoin doesn’t need to be difficult, even if this is your first time investing or trading cryptocurrencies. Bitcode Method site offers a particularly user-friendly approach to new traders in the space, allowing users to trade passively using data-driven technology that reads the market and trades on behalf of users.