Warning: the article is for informational purposes only.  Before settling cryptocurrencies transactions, carefully assess the risks.  Due to the rate instability, you may lose savings.

There are three ways to buy and sell a cryptocurrency:

  • by means of the exchange;
  • at the exchange office;
  • through acquaintances who own digital assets.

I used to think that there was no other way, at all.  It turns out that there is a fourth - cryptocurrency cards.  The first service I found and paid attention to was YellowCard.  Great idea, worthy implementation, retail and cards available worldwide.  But not so fast, here comes the problem - https://www.yellowcard.io/countries:

 

Nigeria ... Beautiful country, but what is more important - you can buy there, but you cannot sell ...

This "coming soon" all over again.  While we are waiting for these guys, we quickly find other market participants on the Internet, the English company GetCryptoPoints (https://getcryptopoints.com).  Have no idea why not "coins."  But let's say buying "points," we still get the cherished "coins" on the wallet, and this is nice.  And at the stated rate - that is very good for the wallet.  Looks like that:

And on the stock exchanges, we see other rates:

So, through cards, I buy Bitcoin for $ 6158, and through the exchange - for $ 6914.   That is saving but at the expense of what?  I think it is due to cryptocurrency resale directly from miners.  Any large transactions can adjust the rate in the free market.  Therefore, large transactions are conducted at a rate that is more favorable for the cryptocurrency buyer. And then you can either get super-profit, as do the exchanges and make money on us, or work on the mass market segment and work volume, as does the service GetCryptoPoints.  As a customer, I'm more of the second concept.   My personal gain is important to me, as I think to you too.  Let's check it out and evaluate - https://getcryptopoints.com/. You are welcome to share your opinion in the comments.

How about we ask friends ...

This is one of the less risky ways.  But it will require to spend time searching for such a friend - due to the rising cost of cryptocurrency, few people are willing to publicly say that they own Bitcoin or Ethereum, and least of all to disclose the amount.

This method is suitable for beginners - people who would like to buy a cryptocurrency for the first time, but are not ready to register on the exchange or contact exchange offices.

 The first step is to choose a cryptocurrency for purchase.  Then - a wallet.  There are several types of wallets:

  • web service: Blockchain.info, Bitcoin.com, Jaxx, MyEtherWallet, Gatehub, Copay, Coinbase;
  • desktop program: Exodus, Electrum, Jaxx, Copay;
  • mobile app: Electrum (Android), Mycelium (iOS and Android), Coinomi (Android), Copay (iOS and Android), Bitpay (iOS, Android);
  • hardware key: Trezor, Ledger, KeepKey.

It is impossible to give a universal advice on choosing a wallet.  Here you should focus on your own needs and safety considerations.  As a rule, the desktop program and the hardware key are more reliable than the web service and mobile app.

However, using a mobile app or web service is easier and faster.  In addition, they offer ways to protect savings: file-key, secret-phrase, or private-key authentication.  But remember: attackers can bypass them too.

After registration, the system will generate a unique wallet address.  Before you conduct a transaction, you need to talk the details with your friend and choose the method of payment.

For example, you can transfer money to a bank card, a payment system account or pay in cash.  Please note: each bank has limitations on the amount of the card to card transfer.  Remember, unlike buying YellowCard cards, using GetCryptoPoints - you transfer fiat money from an individual to an individual. This is not a purchase of goods by bank transfer, it is just a transfer of money with a concomitant set of problems and reports to banks for both parties.

Then you need to transfer the address of the cryptocurrency wallet to your friend and transfer him fiat money.  After that, he will send a cryptocurrency.  Depending on the network load, transaction processing can take from several minutes to several hours or days.

Pros of the method:

 • minimal risks (if your friend is a reliable person);

 • fee free (unless your friend asks for a percentage for his services).

 Cons of the method:

 • not suitable for large transactions;

 • search for a familiar cryptocurrency owner may take time;

 • the operation takes place between individuals, which is subject to limitations on the part of banking systems.

Cryptocurrency exchange offices

Yes, it is a thing.  Risky way, but also convenient.  Yes, I am writing about those parasitic organizations that make money on us according to the classical fee scheme.  Ah, agents, my favorite agents.  It's one thing when you take a fee of 0.1%, and another when 5-10%.  But this option exists, so I will tell about it.

The method barely differs from the previous one, except for the fact that an exchange office changes a friend.  This method bears risks - in the event that something goes wrong during the transaction, the money is almost guaranteed to be lost.

An exchange office is an organization that has both cryptocurrency and fiat money on accounts. It makes money on the fee from each transaction.

First, you need to choose the exchange office.  You can use BestChange for this.  In fact, the rate will differ depending on the type of payment.  Often - payment is made in fact also to an individual, as in the first case.  And this is the same limitations as in the first case.

The exchange rate of Bitcoin on October 15, 2018 - $ 6914.  Thus, the minimum fee of the exchange office for Bitcoin transactions is 5%.  For Ethereum, Monero, Ripple and other altcoins, it is different.

It is all about mathematicsб again.  6914 + 5% = 7259.7 for one Bitcoin.  In the version with YellowCard or GetCryptoPoints, we buy 1 Bitcoin for $ 6158, which is $ 1101 more profitable, and this is 15%, which makes us think.

Each exchange office has its own rules and steps to complete the transaction.  As a rule, transactions in exchange offices are automatic or semi-automatic.  Some offices may ask a photo of a bank card if you choose a bank transfer as your payment method.

It is impossible to give a universal advice on choosing an exchange office, but there are several recommendations:

  • Read reviews on previous transactions.  This will help assess the reliability of the organization.
  • View the transaction history and transaction volume, what are the stocks of the exchange office in cryptocurrency and fiat funds.  This will help align the organization’s capabilities with your needs.
  • Select a payment method and the estimated amount of cryptocurrency. This will help filter the exchange offices with too high minimum limits.  For example, if you plan to spend $ 100, then you should not contact the exchange offices with a minimum purchase limit of 1 Ethereum.
  • Try to choose those exchange offices and payment methods where you need to enter a minimum of personal data.

The exchange is everything!  Or not?

Exchange - the riskiest areas for operations with cryptocurrency and used to be considered the most profitable.  Usually, due to the availability of opportunities to conduct margin trading (the use of borrowed funds to buy or sell assets).

The main risk is related to the fact that the assets of traders are placed on stock exchange accounts, and if the service is hacked, or it is closed due to technical problems, users risk losing their assets.

 Now, none of the available crypto-exchange guarantees the safety of assets.  In addition, due to the specifics of the legislation, they are outside the legal environment.

The exchanges set different conditions for the input of fiat funds.  For example, some allow you to add a bank card, but they take a fee of 3.5% plus $ 0.25 for a transfer in dollars and 5% in other fiat currencies.  In addition, the cost of Bitcoin on average is 10% higher than the market.

To put fiat money in on Bitfinex, you need to go through the verification procedure, which takes from a week to a month.   However, at the end of last year, the exchange introduced restrictions on the registration of new users.

 On the stock exchange trader places orders to buy or sell cryptocurrency or fiat funds.  There are several types of these orders.  The most common are the market and limit ones.

In the first case, the transaction is conducted at the market price of the cryptocurrency, in the second, the transaction is subject to certain conditions.  For example, the trader decided to wait for the growth of the price of Bitcoin to $ 25 000.  It creates an appropriate limit order, and when the price reaches the specified mark, the transaction is conducted automatically.

After the conclusion of transactions, you can withdraw funds - both cryptocurrencies and fiat money, but usually, there is a minimum withdrawal amount and a withdrawal fee.  The withdrawal fee is usually 0.001 Bitcoin.  The daily limit is about 50 Bitcoins.

 To withdraw funds, you must specify the address of your Bitcoin wallet and select the amount.  The exchange independently calculates the number of cryptocurrencies, taking into account the fee.

Pros of the method:

 • trades occur instantly;

 • the ability to conduct transactions in large volumes.

 Cons of the method:

 • high fee for depositing or withdrawing funds;

 • lack of control over assets.

Summary

The cryptocurrency market is fast-growing, chaotic and free.   Therefore, everyone plays it most profitable for themselves.  Personally, I chose the GetCryptoPoints cards.  And I will explain why:

  • It is cheap. I can buy a card for $ 100, or for $ 1000, or for $ 5000.  It all depends on my current needs.

  • I can spend and withdraw funds from the card in parts. That is having bought a GetCryptoPoints card for $ 100, I can first withdraw, for example, $ 25, and then $ 75.  And always at the current rate, which is, according to my observations, is always more profitable than Bitfex.  Goodbye, friend!

  • The service gives me the most popular login currencies. These are BTC, BCH, ETH, LTC.  I don’t need others.  And when I deal with trading, for me this is the most profitable way to put a cryptocurrency in on the riskiest exchanges.  Why would I use them with all the fee and KYC, if I can use the card without unnecessary and lengthy procedures and fee? I will choose the card!

  • I can do without a wallet. For me, of course, it is not really relevant, but I don’t own an LTC wallet, I don’t trust multicurrency options (stored who knows where), and I’m just too lazy to start a new one.  In the case of GetCryptoPoints, you don’t need to start anything.  I simply transfer LTC to the desired recipient wallet and that's it.  Conveniently!

  • Opportunity to buy cards via bank transfer. I buy prepaid cards officially, not digital assets, which operations banks can freeze.

PS and PPS:

 At first, the article was an overview of exchanges, exchange offices, and friends as market participants.  It ended up with cards and their absolute victory.  Yes, the market is changing, changing every day.  And I advise you not to fall behind!