Buying Altcoins is super easy! Maybe once it was a complicated and hard process, but now we have many fast and easy ways to buy cryptos. Here I will share with you the 3 most common ways to buy Altcoins. But before diving into the details of how to buy altcoins, let’s have a glimpse of what you need to know and what you should get ready before buying Altcoins.
What you need to know before buying Altcoins
1. Cryptocurrency Wallet
A crypto wallet is a piece of software/app or hardware that you can use to store and manage cryptocurrencies. I would suggest you should get some basic knowledge about crypto wallets before buying cryptos. You can check our article “What is Cryptocurrency Wallet ” to get some basic information about crypto wallets.
2. Cryptocurrency Exchange
Crypto exchanges provide services for buying and selling cryptocurrencies. I would recommend that you get some knowledge about crypto exchanges. Different exchanges provide different services like fiat-to-crypto or crypto-to-crypto exchange services. They also have different types of payment methods and different terms and conditions. You should also check if your desired Altcoin is available in the exchange because not all the altcoins are listed in every exchange. You can check our article “What is cryptocurrency exchange” to have some ideas about crypto exchanges.
3. The Altcoin
Most people know only about Bitcoin, Ethereum and a few more cryptocurrencies, but in reality, there are thousands of altcoins available in the market today. Before buying you have to check and choose which altcoin you want to buy. Every altcoin has a different price and market value. You should have to do your research about your desired altcoin before buying it.
4. Methods of payment
When you are buying cryptocurrency through the exchanges or from crypto users, there are many ways to pay for it. For example, paying through credit card, debit card, PayPal, cash, or some other methods. You should know if the exchange you are going to use will accept your preferred method of payment or not.
3 Most Common Ways to Buy Altcoins
1. How to Buy Altcoins Through Exchange
To buy or sell cryptocurrency through the exchange, you will have to go through a few steps process, I will explain it in a bit but before let me explain there are two types of exchanges that exist:
Fiat to Crypto exchanges: In this type of exchange you can buy cryptocurrencies in exchange for Fiat money. Binance and Coinbase is one example of this type of exchange. You can buy BTC, BCH, LTC and ETH, and many more altcoins in Binance and Coinbase exchanges.
Crypto to Crypto exchanges: This type of exchange helps you to exchange crypto like BTC, ETH, BCH, and many more with other cryptocurrencies. Binance is also one of the famous examples of crypto-to-crypto exchange.
Now you know the different services provided by exchanges, You can select which type of exchange will work for you. If you are going to buy crypto by using your credit card, debit card, PayPal, you have to choose fiat to crypto exchanges. Otherwise, you can go for crypto to crypto exchanges if you just want to exchange one type of crypto with another. For example, to exchange USDT with Ethereum.
Steps to Buy Altcoins Through Crypto Exchange
- Select the cryptocurrency exchange (e.g: Binance exchange)
- Open the exchange website or download the app
- Create an account by providing the required information for registration, like user name, email id, phone number, etc.
- Verify your identity, this step may require your passport or national ID card number, or a copy of your passport or ID Card. Please check the requirements on the exchange’s website.
- Once your account is verified, Deposit some funds to your account with dollars or euros or any currency that you are using.
- Select the type of cryptocurrencies you want to buy.
- Select the number of cryptos you want to buy.
- Select the method of payment.
- And that’s it. You bought it!
2. How to Buy Altcoins Directly From Crypto Users
As I explained you can buy cryptocurrency from the crypto exchange. But crypto exchanges are centralized and run by some organizations. Which means you will have to follow their terms and conditions. You will have to provide your identification and the fee they will charge for each transaction you make. So if you don’t want to share your identity and also don’t want to pay additional fees to crypto exchange then you have to buy crypto directly from crypto users.
Now the question is, how will you find crypto users who are willing to sell their crypto? And the answer is P2P(Peer-to-Peer) Exchanges.
P2P exchange provides a platform for crypto users to sell and buy cryptocurrencies directly from one another.
The sellers make a listing of cryptocurrencies they want to sell along with all the information like the amount, price, method of payment, etc. The buyers will see the listing and will choose the one which suits them, so they will contact each other and will close the deal. There is also a transition fee but far less than the centralized exchanges.
Steps to Buy Cryptocurrency Directly From Crypto Users
- Create an account in the P2P exchange.
- Check listings from sellers
- Choose the list that suits you.
- Check the payment method.
- Check the seller history and reviews
- Provide the required details for listing and submit your request.
- If your request is accepted. The amount of cryptocurrency will be sent to the escrow. Escrow protects both buyers and sellers from fraud. When the terms and conditions are met the cryptocurrency will be released to the buyer, otherwise, it will be sent back to the seller.
- Send payment to the seller according to the payment method the seller mentioned.
- Once the seller receives and confirms the method, the Escrow will release and send cryptocurrency to the buyer.
3. How to Buy Altcoins Through Crypto ATM
Crypto ATM is the easiest way to buy altcoins but unfortunately, not all altcoins are available in crypto ATM. Also, crypto ATMs are not yet available in every country in the world. so if you are the lucky one and a crypto ATM is available in your city, you just need to go to the ATM, provide the required information, insert the cash and you will receive crypto in your wallet instantly.
Steps to Buy Altcoins Through Crypto ATM
- Search for the location of crypot ATM in your city
- Go to the ATM and provide the required information.
- Some ATMs may require you to identify your identity and ask for your phone number.
- You will receive a text message with a code, enter the code into the ATM
- Enter your cryptocurrency wallet address. If you don’t have a crypto wallet, the ATM will create one for you.
- Insert the cash into the Bitcoin ATM.
- ATM will transfer cryptocurrency to your crypto wallet.