How Do You Purchase Bitcoin?

The price of bitcoin was introduced in 2009, after which it has seen a lot of ups and downs in its price, keep in mind that it may seem like a roller coaster ride to you. Over the years, a lot of traders have started taking a plunge into it, while some have made lakhs of money with it, on the other hand, others have faced huge losses. If you're considering a version of this digital currency for trading, here are a few ways to buy BTC. You can buy them both directly and indirectly from new upstarts with traditional brokers.

If you are planning to buy bitcoin, then you will have many places from where you can buy it, first of all, you will need a wallet. It doesn't matter where you buy bitcoin from, no matter which bitcoin wallet you have, you can easily send your coins. Below are the three main options for buying bitcoin:

●  Decentralized Exchanges

●  Centralized Exchanges

●  Peer to Peer Exchanges

Decentralized Exchange

The best alternative to Centralized Exchanges (CEX) which are considered is DEX i.e. Decentralized Exchanges. DEX exchanges have the advantage over cEX exchanges in that there is no KYC loophole, plus you get instant wallet connectivity and it's much faster, simpler, and location-independent. But its biggest drawback is that it facilitates trades with crypto through a decentralized exchange. 

While decentralized exchanges aren't yet designed for fiat-to-crypto exchanges like this, if you own crypto coins and want to exchange them for bitcoin, consider the decentralized exchange for you. Its speed will be hard to beat. With many blockchains charging lower fees than digital currencies where trading options are provided, DEX is considered a much easier way to use if you've already bought cryptocurrency.

Centralized Exchange

CEXs are those used in financial systems where stock trading is carried out by companies such as Schwab, Fidelity, or ETrade. How can you buy bitcoin through an exchange? You first need to sign up for an account, after that the fiat money is sent to the exchange, and after that, you can buy your bitcoin.

While Binance has become the world's largest crypto exchange today, it may seem like some crypto companies and projects have some regulatory hurdles to deal with and are not associated with Americans. There are several companies that, like Binance.US, have created several alternatives and are providing a limited number of services to Americans.

Peer to Peer Exchanges

When it comes to payment options, peer to peer exchanges are being used the most by people while buying crypto for the most flexibility as it is being preferred the most. If you start a business with someone else, you will be allowed to make payment through the method of your own choice. Additionally, exchanging coins for cash can be done via Venmo, ACH transfer, or PayPal, or it can include an in-person meeting. On the other hand, currency types and exchange rates are based on what people agree on the most. Based on the world we all live in, LocalBitcoin and Paxful are considered to be the best P2P exchange options. 

There are, however, several purchase options that have been made widely available. There is a lot of flexibility in payment options P2P exchanges can take advantage of through Decentralized Exchanges and Centralized Exchanges. However, we all know very well that only those fees are paid for where you are provided with better facilities. We have already mentioned two better exchange options and compared to which pricing with P2P exchanges will not be standardized or considered low.