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Many of you have probably already wondered about the easiest and safest way to buy crypto currencies. Not necessarily because it is difficult, rather owing to the fact that there are a variety of possibilities today. For this reason I would like to introduce two options — one in the offline and one in the online world.
The Offline World
Let’s start with the less obvious option — the offline world — and take a look into the past. Back in the days you could meet people in bars around the corner and they offered you Bitcoin against hard currencies like the Swiss franc. That seems a little bit strange and reminds you probably more of illegal business, but that’s the way it started. Because these people were nothing but miners who offered their mined coins to buy some drinks.
These days, you do not have to go to a wicked bar to buy crypto currencies — at least not in Western Europe. There are more convenient ways to purchase crypto currencies, such as at the post office counter from the Liechtenstein Post. The process is easy and secure, because you enter the post office where you ask directly for crypto currencies. Once you have told the desired amount you have to prove your identity. According to Thomas Nägele this is mandatory to cover “all aspects of ‘know your customer’ (KYC) and anti-money laundering”(Lexology, 2019).
After the validation of your identity and a successful execution of the exchange transaction, you receive a physical paperwallet for your crypto currencies, which contains the public key (comparable to a bank account) and the private key (comparable to the password of the account) of your crypto currencies. Both public and private key should be stored securely.
The Online World
Now that you know how to buy crypto currencies offline, let’s turn to the online world — more specifically to a digital currency exchange. So far, my favorite digital currency exchange is Coinbase. The reasons behind are that it is easy to use and bank transactions arrive fast.
On Coinbase, you can buy small amounts of crypto currencies on your mobile phone with five simple steps
- Download the mobile App for Android or iOS
- Create a Coinbase.com account within the app
- Add a payment method by connecting either your bank account or a credit/ debit card
- Tap the trade button and choose the currency you want to buy as well as the amount
- Confirm the details of the trade
Another reason for beginners to start trading crypto currencies on Coinbase is because the exchange is widely considered reliable. In comparison to other digital currency exchanges, I have had almost no bad experience with Coinbase so far.
The only time I became cautious was when the client advisor of my local bank called me and asked if I really wanted to send my money to Coinbase’s account due to previous issues with another client. Hence, I decided to send a small amount to check if the established connection from my bank account to Coinbase still exists. After only one day I received the sent amount in my Coinbase account and thus was able to further invest in crypto currencies.
Most probably, the other bank client forgot to put the payment reference in his transaction, which leads to an error in the deposit process. To protect you from such issues, I will present you in the next tutorial a step by step description of “how to buy crypto currencies with Coinbase”: From the registration process, over the validation of the bank connection to the first successful purchase of crypto currencies.
Lexology 2019. Know Your Customer. Retrieved August 12, 2019 from https://www.lexology.com/library/detail.aspx?g=f34dd9d1-4460-4783-a971-b43360e730be
Coinbase 2019. Get Started in a few minutes. Retrieved August 19, 2019 from https://www.coinbase.com/
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