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Guide to Buying Cryptocurrency in 2022

Guides to buying cryptocurrency

Are you looking to buy cryptocurrency and don’t know where to start? Well, today is your lucky day as we have put together a post on how you can buy cryptocurrencies without sweating it. And just so you know, the process of buying cryptocurrencies is becoming easier and easier every day. 

But before you get started, we would like you to consider a few things such as what cryptocurrency to get, how to pay, and which exchanges are supported in your country. Knowing this will make the entire process smooth and save you a lot of headache.  

This guide covers the basics, such as the pros and cons of buying coins and different funding methods. Let’s jump right in, shall we?

Pros and Cons of different Coins

Although Bitcoin is the most famous and oldest cryptocurrency, there are thousands of others known as altcoins you can invest in today. That said, it’s isn’t always easy to decide which cryptocurrency you should invest in. In this section, we will compare the pros and cons of most popular cryptocurrencies, so you have a head start when choosing a digital currency to invest in. 

Bitcoin vs. Ethereum

BTC Pros & Cons

Pros

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  • It was the first cryptocurrency
  • A vibrant ecosystem and market
  • Bitcoin is the benchmark for every other coin
  • An unrivaled liquidity

Cons

  • Network capacity limited
  • In comparison to newer coins, this coin has fewer features.
  • Charges are moderate

Pros & Cons of Ethereum

Pros

  • There is a huge developer following
  • Innovative smart contracts have revolutionized the industry.
  • Its utility exceeds that of the average cryptocurrency
  • Compared to Bitcoin, transactions are faster
  • Invested in by reputable cryptocurrency professionals

Cons

  • Compared to some other newer altcoins, transactions are slower
  • There can be human error in smart contracts
  • There are many platforms to choose from, which can create confusion for new users.

Funding Methods

In addition to using traditional currencies like U.S. and Canadian dollars, there are a few ways to purchase cryptocurrencies.

Many options are available for users looking to purchase crypto on an exchange. Credit cards and third-party processors like PayPal are among the options available.

Discover the easiest and most popular ways to buy crypto by reading on.

Using a credit card to buy Bitcoin

For many first-time cryptocurrency buyers, buying Bitcoin (BTC) with a credit card is the first action they take. But guess what? credit and debit cards have some disadvantages as a payment option for purchasing cryptocurrency online. 

These disadvantages include the possibility of high fees and the fact that some banks do not allow their clients to buy cryptocurrency using their credit cards. It is worth noting that many cryptocurrency exchanges support direct deposits to cryptocurrency wallet addresses. So its best to explore this option if you plan to buy cryptocurrencies

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Pros & Cons of Buying Bitcoin with a Credit Card

Pros

  • The purchase process is instantaneous
  • Most online payments are made with credit or debit cards.
  • If you’re new to cryptocurrency, this may be your best option.

Cons

  • Credit cards charge high fees for buying cryptocurrency
  • With a credit card, you must provide more personal information.
  • In many cases, credit cards have hidden fees.
  • You can only purchase very small amounts of crypto with a credit card.

Using PayPal to buy bitcoins

Although Bitcoin has made much progress, PayPal remains the standard for online money transfers. Many people believe PayPal is the perfect payment option to trade bitcoins online due to its popularity. However, PayPal and Bitcoin are indeed different payment options. 

Here you’ll find our recommended methods for buying Bitcoin with PayPal and their advantages and challenges.

Pros and Cons of PayPal

Pros

  • Making online payments with PayPal is easy and convenient for most people
  • For online payments, PayPal is a trusted platform
  • Almost everyone has a PayPal account

Cons

  • There are higher fees associated with buying cryptocurrency through PayPal
  • PayPal limits the number of cryptocurrency users can purchase
  • PayPal isn’t available on most exchanges

Buying bitcoin with PayPal: How to do it

PayPal is not our top recommendation for purchasing Bitcoin or any other cryptocurrency. Despite being one of the ways to buy cryptocurrencies, there are even other better ways to buy cryptocurrencies today. Below are our recommendations for two ways to buy crypto with PayPal:

Local Bitcoins

Globally, LocalBitcoins is a peer-to-peer Bitcoin marketplace. With more than 20 payment options, LocalBitcoins accepts PayPal as well. There is a tab that shows how much Bitcoin is available for sale and the feedback scores of each seller. 

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If PayPal is their preferred payment method, buyers can then use their PayPal account to buy Bitcoin at the rate they are willing to pay.

After entering this information, buyers wait for the seller to accept their offer of Bitcoin. Upon accepting an offer, LocalBitcoins locks the seller’s Bitcoins in escrow, protecting both parties. 

The seller confirms receipt of your PayPal payment and then informs LocalBitcoins, who releases your BTC to the buyer. You can complete this process in under 10 minutes.

On LocalBitcoins, you can buy Bitcoin using PayPal safely, but the fee is much higher than using a bank transfer or credit card.

eToro

With eToro, users can trade stocks, commodities, cryptocurrencies, and other financial products. 

Since 2007, eToro has served customers around the world. Because it is regulated, your funds are protected.

The process of buying Bitcoin with PayPal on eToro is very simple. Also, crediting your PayPal account with funds for purchases is very easy as soon as you register. 

Since eToro is a trading platform, you will not receive your Bitcoins when purchasing with PayPal. You are speculating about whether the price will increase or decrease; by being right, you can profit.

eToro is not recommended for beginners who have no understanding of longs, shorts, or other trading concepts. PayPal has very low fees that apply to Bitcoin purchases, but the caveat is that you don’t own the cryptocurrency. 

The ease of trading Bitcoin on eToro may appeal to experienced traders who don’t want to learn about storing cryptocurrency in a wallet.

Conclusion

Buying bitcoin and other digital currencies is super easy. And with tons of payment methods available today, anyone regardless of their experience can purchase bitcoin without sweating it. We hope today’s post have made buying cryptocurrencies a hassle free experience. Please take a minute to share your experience with us.

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