The Bitcoin market has been on the craze recently; with the news of its constant upward trend in October 2021 hitting a $62 thousand dollar market price, it has surely gotten a lot of attention. Bitcoin is the first cryptocurrency and has been leading the crypto pack since it was launched in the market in 2019 by someone who goes by the pseudonym, Satoshi Nakamoto. Bitcoin gets its popularity because of its main features, the blockchain and its decentralised finance.
However, before you dig deeper into the world of Bitcoin trading and its fundamentals as well as get involved in the Bitcoin trade platform, you would need to know how to buy Bitcoins first; therefore the need to identify your options when it comes to buying and selling your Bitcoin also comes first. If you are curious to know more about the ways to exchange your fiat currency for Bitcoin, this article is for you. This article will put focus on the two ways of buying and selling your Bitcoin that is through an online exchange and the Bitcoin ATM.
Let us first dig into the facts of online Bitcoin exchange platforms so you can decide whether this option would better fit your investment style.
Online exchanges are the most common method of buying and selling Bitcoin. This is because there are a lot of Bitcoin exchange platforms in existence you can choose from. However, you would need to research a user-friendly and trusted online exchange platform such as Bitcoin EVOLUTION, since there are some platforms which have disappeared as fast as it is created. Therefore, deciding your online exchange platform is really crucial in the success of your Bitcoin investment since each exchange platform has varying features and benefits.
The advantage of an online trading platform is that it is very convenient since buying and selling Bitcoins can be done in the comfort of your home and using your own personal devices.
Moreover, the process of creating a Bitcoin account is straightforward, as well as the process of linking this created account to your personal account, which will be the source of your fund to buy Bitcoin on the online exchange platform. You would need to link your debit or bank account to your Bitcoin account so you can proceed to buy Bitcoin. After the process of linking your fund account t your Bitcoin account, all that you fund account into your Bitcoin account; all that you need to do is to buy Bitcoin; you just have to enter the Bitcoin or any other cryptocurrency you are to change your fiat currency with on the exchange field then enter the amount you are to invest in Bitcoin. But since it will take a long time to process and verify your exchange transaction, do not be surprised if your purchased Bitcoin arrives 1 to 3 days after.
On the flip side, since you are to provide your own bank account while creating an account on the exchange platform, you would need to provide personal information; some platforms even ask for a valid ID to process your account and hour exchange transaction. Thus, your identity is known by the platform; thus, complete anonymity is not possible.
Since you now have the necessary data you need to know about online exchange trading platforms, let us now dive into the other buy and sell exchange option, the Bitcoin ATM.
Bitcoin ATM is a new innovation launched in 2013, already four years after Bitcoin was launched. And today, there are thousands of Bitcoin ATMs in use and being utilised by a number of Bitcoin investors.
Bitcoin ATMs are increasing in number as the Bitcoin market grows increasingly popular. Although it is not as convenient as an online trading platform which you can access through your own device, Bitcoin ATM still has the potential to grow in the future for as long as the Bitcoin market goes the way it is now. For novice investors who don’t want to go through the hassle of creating an account on an online platform, Bitcoin ATM is the better choice for you. Some companies even allow investors to pre-order their Bitcoin or any of their chosen crypto, making it more convenient. The only problem to be faced is if a Bitcoin ATM is available in your country. If it isn’t, then you would have to go through an online exchange platform.
Bitcoin ATMs allow cash to be used for an exchange, so you would not need to provide your bank account and other information regarding it. However, you will still be asked to provide information which is much less than if you are to create your own Bitcoin account. This option provides a solution for those investors who are interested in Bitcoin investment but do not have a bank account to fund their exchanges.
Since you provide much less personal data and don’t have to link your bank account, the process of confirming and validating goes much faster. Usually, Bitcoin ATM transactions last for a few minutes because creating a Bitcoin account is not necessary.
However, you would need to buy and have a Bitcoin wallet where you will store your purchased Bitcoin. Bitcoin wallets are provided by the online trading platform, but since you opt to go for an exchange using a Bitcoin ATM, you would need to have a Bitcoin wallet before an exchange transaction using Bitcoin ATM since its address is one of the required information you have to fill in since you would need to have a place to store your purchased Bitcoin which could either be a hot or cold wallet.
Now that you know how exchange transactions work for both Bitcoin online exchange platform and Bitcoin ATM, deciding which of the two to go for would ultimately be up to you. However, remember to choose the exchange option which will fit perfectly to your financial goals and situation, as well as which would work best with your investment style and your skills set.