Crypto experts have predicted that cryptocurrency could become the next world’s reserve currency in the next 50 years. Investing in crypto right now could be a potentially lucrative investment for your portfolio further down the line. But whereabouts can you buy crypto at an affordable rate?
If you’re looking for the cheapest way to buy crypto, you’ve come to the right place. In this blog post, we will discuss some of the cheapest methods available for purchasing various types of cryptocurrency.
We will also provide a few tips on how to get started in the world of crypto investing. So, whether you’re just starting out or you’re a seasoned pro, read on for some great advice!
What Is Crypto?
Cryptocurrency is a digital or an otherwise virtual asset. Cryptocurrencies use what’s known as a cryptography for security and represent a certain form of currency, relative to other traditional forms of currency like USD. One of the benefits of cryptocurrencies is the fact they’re decentralized.
This means cryptocurrencies aren’t subject to controls from the government or other financial institutions.
The most well-known cryptocurrency on the market today is still Bitcoin, which was established in 2009. Many other currencies such as Dogecoin or Etherium have been created since then, and these are often referred to as altcoins, which stands for alternative coins.
Coin holders can use cryptocurrencies to purchase things in the same way you would a traditional currency. The main difference is that they’re traded on what is known as decentralized exchanges.
This means that trading with these currencies can be volatile; the price listing for currencies can quickly change, meaning it’s vital that you keep up to date on trading prices. You can read about the history of Bitcoin’s price here.
For this reason, crypto trading is often considered high-risk. Holders also have to bear in mind additional factors, such as crypto transaction fees. However, with proper research and risk management, it can be a profitable investment.
The History Of Crypto
Cryptocurrency has its roots in the 1980s. A group of cryptographers and computer scientists created a cryptographic system called “Hashcash.”
This system was designed to be used as an anti-spam measure. However, it did not gain widespread adoption until 2009, when Satoshi Nakamoto released the Bitcoin whitepaper.
In the years since cryptocurrency has become increasingly popular. As of 2020, there are over 18 million Bitcoin users and over 6000 different types of cryptocurrency in existence.
Cryptocurrency is here to stay, and its popularity is only increasing.
How To Buy Crypto
Now that we’ve covered some basics, let’s learn how to buy crypto. There are a few different ways to purchase cryptocurrency. You can buy it directly from an exchange, or you can use a broker or marketplace.
Cryptocurrency exchanges are online platforms where you can buy and sell crypto. These exchanges typically have lower fees than brokers, but they also require more knowledge and experience to use effectively.
Some popular exchanges include Coinbase, Binance, and Kraken. Brokers are middlemen that buy and sell crypto on your behalf.
They typically charge higher fees than exchanges, but they are easier to use for beginners. Some popular brokers include eToro and Robinhood.
Marketplaces are similar to brokerages but allow you to trade crypto with other users. Experienced traders often use these platforms, and some popular marketplaces include Paxful and LocalBitcoins.
What Is The Cheapest Way To Buy Crypto?
Now that we’ve covered some of the basics, let’s get into what is the cheapest way to buy crypto. As we mentioned earlier, there are a few different ways to purchase cryptocurrency.
Each method has its own set of pros and cons, and it will depend on your own personal preferences to which will be the right method for you.
Bitcoin ATMs are one of the cheapest methods for buying crypto, with fees as low as around $0.50 per transaction. They are easy to use and you can find them in various destinations around the world.
Bitcoin ATMs are becoming a staple in most larger cities and countries that accept Bitcoin. Since Bitcoin is becoming increasingly popular, the number of cities hosting these ATMs has also increased in recent years.
All you will need to access one of these ATMs is a debit or credit card. However, some recent Bitcoin ATMs don’t even require that. Make sure to find the closest ATM to you, to make sure you know what’s required.
You are able to buy, sell and send Bitcoin to a digital wallet of your choosing with a Bitcoin ATM.
The amount of Bitcoin you can buy and send will depend on the Bitcoin ATM you are using, although some Bitcoin ATMs can handle transactions as high as $20,000.
Bitcoin ATM transactions are instantaneous, meaning you don’t need to wait around for transactions to be approved. They also have a high level of security and anonymity so you can rest assured knowing your Bitcoin transactions are secure and safe.
If you want to learn more about Bitcoin ATMs, check out this article to find out more.
Get Bitcoin For Free Through Promotions
Though there are many ways to buy crypto, you can occasionally do so without spending anything yourself.
You can sometimes get Bitcoin for free through special promotions that some companies put on. For example, sign up for a new Bitcoin-related service and receive a small amount of BTC for doing so. This is usually a very small amount, such as $0.0001 worth of BTC, but it’s still free money.
Airdrops are another way you can get Bitcoin for free. This is when a cryptocurrency company decides to give away some of its coins or tokens to the general public.
They will usually do this by dropping the crypto into people’s digital wallets who meet certain criteria, such as holding a certain amount of another cryptocurrency in their wallet already.
For example, if you held 100 ETH in your digital wallet, you might be eligible for an airdrop of a new cryptocurrency that is being launched. This is a great way to get free crypto and learn about new up-and-coming projects in the process.
Crypto Trading Platforms
Crypto trading platforms are online websites or apps that allow you to buy and sell cryptocurrencies.
These platforms usually have lower fees than traditional brokerages and they offer a wide variety of features for experienced traders. Some popular crypto trading platforms include Binance, Coinbase Pro, and Kraken.
If you’re new to the world of cryptocurrency trading, then Binance is a good platform to use. They have one of the lowest fees for buying and selling crypto, as well as a user-friendly platform that is perfect for beginners.
To get started, simply create an account on Binance and deposit some funds. Once you’ve done that, you can start trading Bitcoin, Ethereum, or any other cryptocurrency that they offer.
Purchasing crypto through a trading platform is one of the cheapest methods available, with fees as low as 0.05% per trade. This method also offers a high level of security and anonymity, as well as a wide variety of features for experienced traders.
Bitcoin mining is the process of verifying Bitcoin transactions and adding them to the public ledger, known as the blockchain. Miners are rewarded with Bitcoin for their efforts, which provides an incentive for people to participate in the network and keep it secure.
Mining is a very energy-intensive process, and it can be quite expensive to set up a mining rig. However, if you’re willing to make the initial investment, it can be a very profitable way to earn Bitcoin.
After the initial investment of purchasing the equipment to mine the Bitcoin, you are then able to focus on collecting Bitcoin for your own personal use without having to purchase Bitcoin yourself.
The downsides to this are that the cost of energy and electricity it takes to run the Bitcoin mining could be in the hundreds or even thousands of dollars each month. There is also no guarantee that you’ll harvest enough Bitcoin to make the endeavor worthwhile.
Bitcoin mining isn’t something that a person new to the Bitcoin industry should focus on, as it takes a bit of skill and planning to make it successful. Although, once you understand the industry a bit more, it can be a great and, most importantly, cheaper way to get Bitcoin.
Cheapest Way To Buy Crypto: The Takeaway
There you have it: some of the cheapest ways to buy crypto. Remember, there is no one-size-fits-all solution to investing in cryptocurrency. It all depends on your individual needs and preferences.