Bitcoin has become one of the most recognizable and desirable assets among ordinary users and investors. Some appreciated the convenience of working with it, while others appreciated the opportunities to make money from the digital asset.
Bitcoin, or BTC, is a cryptocurrency that is presented in a virtual environment and is not issued in the form of bills or coins. The prefix "crypto-" implies that bitcoin has cryptographic protection - the funds are initially secure.
The technology chosen to protect bitcoin - blockchain - implies that coins exist in the form of records ("blocks"), the information about which is held by different computers in the network.
A cryptocurrency using blockchain does not have a centralized authority that stores transaction data or issues coins in monopoly status.
Just as Windows is not the only operating system (we have all heard of Android, iOS and Linux), Bitcoin is not the only cryptocurrency. The names everyone has heard of are Litecoin and Ethereum.
Thus, Litecoin compared to Bitcoin is less attractive for investors, but more adaptable for everyday transactions. Ethereum works not only as a cryptocurrency but also as a platform for other decentralized applications - the value of Ethereum depends on the success of the latter.
There are 27 key cryptocurrencies available to Broex investment platform clients.
How to buy cryptocurrency with a bank card?
For each cryptocurrency user, the first purchase is in exchange for fiat currency.
The term "fiat currency" seems unfamiliar at first glance. The term hides the familiar government-backed money - the Dollar, the Euro, the Yen and others. Looking deeper, fiat is money issued by the central bank at its discretion without regard to the real assets at its disposal. In the online community, the term "fiat currency" is used to separate government money from cryptocurrency.
The most common way to buy cryptocurrency is with a bank card. Cardholders have a wide range of choices - they can purchase digital assets from a private, ATM, exchanger, exchange or investment platform.
When dealing with cryptocurrency, it's worth bearing in mind that each has its peculiarities. This includes transaction fees or payment transaction fees. For example, the Ethereum cryptocurrency network's fee - Gas Fee, or Gas Price - varies greatly from site to site. The fee for decentralized exchanges (DEX) exceeds the fee for Ethereum ERC20 tokens by 3-4 times.
Broex charges minimal fees. Fee data is available to customers before a transaction.
Each of the presented ways to buy with the card has disadvantages and advantages, and the range of cryptocurrencies themselves can vary significantly.
The EU, Canada and the U.S. do not prohibit cryptocurrency transactions. All of the listed methods are available to users. It is recommended to make a purchase through licensed services. One of them is Broex platform, which adheres to KYC standards.
Buy cryptocurrency from a private person - p2p
It is possible to conduct a transaction directly with another user - usually on a special website. Such sites are similar to bulletin boards, where some users post ads, while others contact them and discuss terms. The main advantage of such deals is the absence of high fees in favour of the service.
There is also a rating system, and you can leave feedback about the seller or buyer. This partially reduces the risk of fraud. Overall, however, p2p-trading sites remain the least secure solution.
Another point worth paying attention to is that it is not always possible to find an offer for a particular cryptocurrency in the selected region.
Buy cryptocurrency via an exchanger
The fastest way to buy cryptocurrency - you do not need to spend time searching for a suitable offer or registration.
Before you start using the services of the exchanger, you should make sure that it has a high reputation - this market also suffers from the actions of fraudsters.
One of the disadvantages of this method is in the modest range of cryptocurrencies - usually about ten. In this case, the exchange service may refuse to service the cards of certain banks.
The way out is the use of fast exchange services at the sites. Such service is provided by Broex investment platform. Users of the Broex exchanger have access to all 27 cryptocurrencies represented on the main platform.
Buy cryptocurrency via an ATM
Such a method bribes with its simplicity, because everyone has to deal with ATMs in everyday life.
The disadvantage is the low penetration of cryptocurrency ATMs, which are not installed in all major cities and the limitation of most machines to bitcoin.
Buy cryptocurrency via an exchange
Most cryptocurrency exchanges have several strong advantages:
- Compliance with high standards and legal requirements;
- VISA/Mastercard support;
- Access to a wide range of cryptocurrencies.
At the same time, exchanges are focused on experienced players who make money from short-term fluctuations in cryptocurrency. The average user may be put off by the need to learn new concepts and complex tools.
Buy cryptocurrency via an investment platform
Cryptocurrency investment platforms have the most advantages:
- Ease of use;
- Adherence to international legal standards;
- VISA/Mastercard support;
- Access to a wide range of cryptocurrencies;
- The ability to assemble your investor portfolio in a user-friendly interface.
- Also, individual investment platforms offer additional bonuses. For Broex, these are:
- Lower commissions compared to exchanges and exchange services;
- Opportunity to buy assets at a fixed price even in a volatile market;
- Binance as an official partner;
- Convenient mobile application;
- Secure wallet for storing cryptocurrency.
So, Broex is an excellent choice for those who want to buy cryptocurrencies and make money from investing in them.
How to store cryptocurrency?
As in the case with buying, there are several ways to store cryptocurrency. The most profitable is storing digital assets on online wallets of verified sites:
- The storage medium is not the user's device, but a cloud service, where the information cannot be lost;
- The wallet is integrated with the services of the site - the user can always exchange cryptocurrency from his wallet;
- Platforms do not charge additional fees for the use of integrated wallets.
- Investment platform Broex.io has its online wallet.
Prospects for cryptocurrency
Cryptocurrency has high prospects both as a means of payment and as an investment asset.
In the latter case, the limited supply of most cryptocurrencies plays an important role. For example, the number of circulating bitcoins technically cannot exceed 21,000,000 coins. Keeping the volume of coins at the same level, combined with capital infusions, ensures a steady rise in the BTC exchange rate.
The most striking example of bitcoin's adoption as both an investment asset and a payment instrument was provided by Elon Musk's Tesla. In early 2021, the electric car maker not only invested $1.5 billion but also began selling cars in exchange for cryptocurrency.
The idea of bitcoin as digital gold also goes to a whole new level after the U.S. Federal Reserve announced that it is studying the transition from precious metal to cryptocurrency.