When you’re ready to purchase your first cryptocurrency, there are several options available. You can pay with cash, a credit card, or use an app. You can also purchase cryptocurrency via a cryptocurrency exchange. If you’re new to cryptocurrency, you should select an exchange that focuses on user-friendliness and ease of use.
Paying with cash
Paying with cash to buy cryptocurrency has its benefits and drawbacks. First, you have to pay a fee to the exchange, usually around 3%. However, you can buy cryptocurrency with a prepaid card. However, it is important to note that prepaid cards charge a high commission.
Another benefit of paying with cash is the privacy and anonymity it gives you. However, you will also have to take more precaution when you buy crypto with cash. For this reason, you should read feedbacks of previous buyers and analyze the seller’s reputation before making a purchase.
Using a credit card
You might have considered using your credit card to buy cryptocurrency, but before you do, you need to know the implications. First, your credit card issuer might view your purchase as a cash advance. Cash advances are typically subject to higher APRs than regular transactions, and they can negatively affect your credit score. Fortunately, most credit cards offer a grace period before interest begins to accumulate.
Another advantage of using a credit card to buy crypto is that it allows you to invest without having cash on hand. Cryptocurrency is a volatile market, and a few days of trading can mean the difference between buying a coin at its lowest price or its peak. You don’t need cash in hand to make a purchase, but you will need to pay the bills at the end of the month or risk incurring interest.
Using an app
One of the best apps for buying and selling crypto is Coinbase. This app is user-friendly, easy to use, and has already gained the trust of millions of traders around the world. In addition to basic buy and sell features, it also offers a wide range of in-depth charts and tools through its Tradeview feature. Users can browse assets by popularity, listing time, and performance. It is also built on an advanced exchange platform that supports multiple order types.
To purchase cryptocurrency, users must complete a KYC process by submitting a photo ID. Next, they must choose a payment method. They can use their debit or credit card, or pay with their Paypal account. While Paypal is a better option than credit card, it will still require a small fee.