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How to buy bitcoin and not run into scammers

Massimo Di Giuda

Predictions of bitcoin price hitting $100000 no longer seem ridiculous. It's just about X5 from the current price. Considering BTC growth rate, it is possible that this milestone will be reached in 2018. How to buy cryptocurrency and what are the peculiarities of each method - red in the article by Bitnewstoday.

Specifics of buying cryptocurrency

In one of the underdeveloped countries, the gypsies sold "bitcoins" to a far too trusting man. Of course, these were not real bitcoins, but coins minted by handicraft. In order to avoid such primitive tricks made by scammers, one needs to find out what is the object of purchase.

First of all cryptocurrency implies the presence of special digital wallets. If dollars can be stored on a plastic card, in a jeans pocket and in many other places, cryptocurrency has fewer options. There are several variants, but cryptocurrency wallets is the essential part. Let's try to figure out how buy bitcoin.

Cryptocurrency Exchanges

The purchase algorithm is similar to the trading of securities through a broker. The first step is to choose one of the exchanges and register on it. There not so many platforms, it's worth choosing those which, among other things, allow to deposit fiat money. Most of them accept only cryptocurrencies. Before registration we need to study ways of deposits with fiat money: bank transfer/credit card/electronic wallets. You should compare and find out what suits you personally, and compare the fees. It would be useful to open charts of the cryptocurrencies you are interested in and compare prices on different exchanges. It's a common situation when some platforms with a low entry commission often sell bitcoin at more expensive price than the competitors.

Registration on crypto exchanges requires identification. This process may be different depending on a platform. On some exchanges you need to send a scan-copy of your passport, on others you do not need it. All this is described in a special section on crypto exchanges. If this point is of principle, it is better to learn about it in advance.

Analyst of investment company Exante Victor Argonov talks about the advantages of working with exchanges: "Exchanges are good with low spreads, high reliability and the option of automated trading. You register, deposit money into the account, search for the desired currency pair (for example USD/BTC) and place an order, at what price you are ready to buy some amount of cryptocurrency. You do not need to buy it at the current market price, you can offer a little less - and with a high probability the order will still work thanks to the price fluctuations. On most exchanges, there are many ways to make deposits to accounts."

Crypto exchangers and bitcoin ATMs

Bitcoin ATM looks like an ordinary ATM. They are not installed at every intersection or even in every country. But, perhaps, one of them may be somewhere near. As in the case of the exchange, the purchase through the exchanger requires identification, this process may be different depending on a company. This option usually has high costs, but it is easier to buy and faster.

There are also websites that provide a cryptocurrency buy and sell service. Nikita Machulis, CEO of TransCrypt, told us about exchanges and exchangers: "There are three classic ways to purchase a cryptocurrency: through an exchanger, exchange or directly from its holder. The exchanger is the simplest and most expensive way, where you can exchange one of the most popular national currencies directly into bitcoin or other cryptocurrency. For operations on the exchange, first you need to create and replenish your account.Then you can make transactions for the purchase and sale of cryptocurrency with other users of the exchange. Both exchanges and exchangers allow you to use electronic wallets, such as Webmoney, PayPal, Qiwi".


Among many different bots created within popular Telegram messenger there are those which allow to carry out transactions with cryptocurrency. Mikhail Sergeev, community manager of the KICKICO platform says: "The bot acts as the guarantor of transactions, using the deposit of bitcoins from the seller's account when making a deal, so you can not worry about security. The bot automatically creates a bitcoin wallet inside your Telegram account." According to Sergeev, Localbitcoins.com, which operates around the world, is popular as well. Security of deals is provided by the guarantor system with the escrow of bitcoins from the seller's account before each transaction.

"Two-factor authentication of the account provides additional security for your account. You can also buy bitcoin with cash or with transfer from a bank card. Pretty convenient service", adds the expert.

Alternative options

There are more complicated, but at the same time cheaper ways of buying bitcoin. Alexander Kitchenko, cryptocurrency researcher/investor, Bitcoin Foundation member talks about it: "An interesting and low-cost non-standard way, which, however, does not allow to get a good amount of cryptocurrency, is to find an easy-to-install and operate miner that supports a number of less popular alternative cryptocurrencies. Mine those cryptocurrencies in which it is possible to process blocks relatively quickly using a conventional video card (the actual information can always be found in the corresponding groups and public places in the crypto community on GPU-mining forums). Then find the exchange, which accepts the chosen alternative cryptocurrency, register there and withdraw all you earnings to its wallet. On the exchange, you can change this altcoin to more interesting coins without spending a single ruble/cents from your own wallet. Or if you want you can withdraw it into the fiat (paper) currency."

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