How convert fiat to cryptocurrency?
October saw a lot of good news for the crypto universe:
Bitcoin and Ethereum break all-time highs;
the SEC announced the adoption of cryptocurrencies;
and November promises a bullish trend.
So, if you've been waiting for a suitable time to invest in cryptocurrencies, the time has come. Although, between you and me, you've been a little late. However, it's never too late to seek your financial stability, so, today we'll teach you how to buy your digital assets with fiat.
How to buy cryptos with fiat?
We have already seen how cryptocurrencies relieve economic pressure in many countries; beyond that, it's the future money. Decentralized finance allows you to control your funds without relying on a third party, in addition, getting passive income, low transfer fees, deposits, or loans. All this, of course, is through cryptocurrencies.
DeFi is the bright new tomorrow, so let's venture together. But, first, let's learn how to exchange fiat for cryptocurrencies.
Best Exchanges in 2021
The first thing we need to do is find the perfect place to buy your altcoins (ETH, BNB, ADA) or Bitcoin if you prefer to invest in the number 1 cryptocurrency. For that, you need to know the best centralized and decentralized exchanges in the crypto market.
Centralized exchanges are privately owned token markets where you open an account and trade the market pairs they offer.
Some accept fiat deposits to convert your money (euros, dollars, rubles, yuan) into different tokens.
Binance: is the number one exchange, one of its main advantages is that it handles meager commissions. On the other hand, you can use debit and credit cards to acquire the token or cryptocurrency you want since it also has many options.
Coinbase: based in the United States, this DEX is a leader in purchasing and selling cryptocurrencies. It offers services in 32 countries and storage and management of digital assets in 190 countries worldwide.
KuCoin: with an intuitive and easy-to-use interface, it has more than 200 cryptocurrencies available. It boasts a Forbes Advisor seal as one of the best exchanges in 2021.
● Decentralized exchanges (DEX)
A decentralized exchange allows peer-to-peer trading of digital assets, i.e., directly between investors. Therefore, you don't have to transfer your assets to the Exchange, which reduces the risk of potential theft or hacks.
Decentralized trading also avoids potential price manipulation or fraudulent trades. In other words, they are safer.
UniSwap: considered the Exchange of the Ethereum network, it offers trading any ERC20 asset instantly. In addition, one of its advantages is that through it, you can add liquidity to any ERC-20 token that is added.
And... you have very low fees of 0.3% per trade.
1inch: it is one of the most interesting decentralized exchanges since it is also a search engine of offers (aggregator) to offer the user the most profitable operation at any given moment.
It is one of the best because it also uses an aggregator of decentralized exchanges. It means that searching for the best prices for each pair of tokens in each of them allows us to find the most efficient exchange routes to receive the most efficient trading prices. Oh, and it charges no transaction, withdrawal, or deposit fees.
PancakeSwap: its operation is based on a series of automated Smart Contracts deployed on the Binance Smart Chain (BSC), Binance's blockchain, which stands out for its large amount of assets and low commissions. Its transactions are very fast, taking on average only 5 seconds. On this Exchange, you can buy BEPR. 🤩
These platforms, whichever one you decide to use, facilitate your first steps in the blockchain world. Of course, the examples we leave you here are suggestions; we always recommend doing your own research. Remember the acronym DYOR; they apply to any investment.
How do I buy tokens with fiat?
We could talk for hours about how to make your first purchases in exchanges, as each one of them has details that make them unique. And, of course, their own access and purchase mechanisms.
However, we don't want to bore you, and we can't make this talk too long, so we will explain the general steps you should follow to exchange your fiat for cryptos are.
Once you choose the Exchange, we suggest you look for their buying and selling guides. For now, here's what you should usually do:
- Open an account
- Verify your identity by sending a photo/video along with some form of identification. This is called Know Your Customer (KYC).
- Verify your address by sending documentation to prove you live there.
- Transfer the amount of fiat money you will invest to the Exchange's bank account.
- Use the Exchange's web / mobile app to find the trading pairs of the tokens or stablecoin you will buy.
- Place the order and confirm the address to which you will send your cryptocurrencies.
As you can see, the process for using fiat to crypto exchange is quite simple. First, you will select their payment method options: a debit, credit card, or bank transfer. Each option will have various fees, although some opportunities may not charge fees and some exchanges have special offers.
Once you choose how you want to pay, with which fiat currency, and for which cryptocurrency, simply complete the steps on the Exchange.
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