This article will look at how to acquire cryptocurrency by exchanging government fiat for it. As is the case with centralised government-backed fiat currencies, there are many ways of acquiring decentralised cryptocurrencies. This article will describe a number of methods and list the advantages and disadvantages of each.
Method 1: Via Centralised Cryptocurrency Exchanges
In order to acquire cryptocurrency this way you will need to register an account at an exchange. Depending on where the exchange is based, the requirements to complete registration will be different. Coinbase is one of the largest cryptocurrency exchanges and they support British pounds, US dollars and euros. Bitstamp and Kraken support both euros and US dollars. Binance is the currently one of the world’s largest exchanges but its main exchange does not accept any fiat currencies. Binance JE however, a Jersey-based subsidiary of Binance, accepts deposits in both British pounds and euros.
Cryptocurrecy Exchanges
Coinbase GBP, euro, US dollar
Kraken US dollars, Canadian dollars, euro (allows trading in GBP, Japanese Yen but not deposits or withdrawals)
Bitstamp euro, US dollar
Binance only cryptocurrency
Binance Jersey GBP, euro
Summary
Anonymous – No
Fast – Once you have registered, yes
Good exchange rate – yes, market rate
Method 2: By using peer-to-peer exchanges
P2p exchanges are an excellent way to acquire cryptocurrency for the privacy conscious and for those for whom registering an account at a centralised cryptocurrency exchange is not an option. The sellers on such exchanges set their own requirements for buyers and many will require buyers to verify their identity before accepting trades. There are various methods of payment available. You can often acquire bitcoin by meeting a seller in person and paying them in cash.
P2P Exchanges
Local Bitcoins bitcoin
Paxful bitcoin
Localethereum ethereum
Litecoin Local litecoin
Local Monero monero
Summary
Anonymous – sometimes
Fast – medium
Good exchange rate – generally not
Method 3: Bitcoin ATMs
Summary
Anonymous – yes
Fast – yes
Good exchange rates - average (5-10% markup)
Method 4: Credit and debit cards
You can use a credit or debit card to buy cryptocurrency
Coingate BTC, BCH, ETH, LTC, XRP
Bitcoin.com BTC, BCH
CEX BTC
Summary
Anonymous – no
Fast – yes
Good exchange rate - no
Decentralised Exchanges
The KYC procedures and extensive verification required to use centralised exchanges is an anathema to many in the cryptocurrency sector. KYC requires customers to submit personal documents for verification by a centralised body. In some cases they require prospective clients to submit a personal photograph of them holding their document along with a note marking the date and the name of the exchange with which they wish to register. In addition to the invasion of privacy such ridiculous procedures entail, the centralisation of customers’personal details exposes all clients to risk. And what about the hundreds of millions who have no documents to submit. These are the very problems that cryptocurrency has the potential to solve. Decentralised exchanges, open to all and with no reliance on potentially untrustworthy third parties, will almost certainly become more and more important as cryptocurrency enters its second decade.