Novice crypto investors often face difficulties already at the initial stages. However, you can act more effectively if you have basic knowledge
In 2021, the crypto market has grown many times over, the industry is attracting more and more new users. However, you need to be ready for it, because digital assets are different from the sphere of traditional finance. Therefore, it is important for novice investors to understand what services, platforms and methods for buying / selling cryptocurrency exist. In this case, you can reduce the risks.
One of the easiest ways is P2P exchanges such as LocalBitcoins. There are advertisements for the purchase or sale of cryptocurrency. You can choose an option with a suitable rate for yourself and conduct an exchange. It is a fast way to exchange digital money for fiat money and vice versa.
It should be remembered that in this case, there is a possibility of the bank transfer being canceled, so there is a risk of losing your bitcoins or altcoins. Therefore, it is better to use services with escrow accounts (they hold funds until the transaction is completed).
To withdraw funds on the same LocalBitcoins, you will need to go through the verification process, so you can not count on anonymity. The platform will require passport details and other personal information.
Another option is centralized exchanges. There are also KYC and AML procedures. However, the deal is likely to go through instantly if there are no liquidity problems on the floor. It is better to choose large and proven platforms.
You should not use the exchange to store your own funds. It is better to immediately withdraw them to third-party services, ideally, when it comes to cryptocurrency, to hardware wallets (they are considered the safest in this area). In addition to hacker hacks that threaten large trading platforms, problems may arise within the company, after which customers can lose access to their account.
Many cryptocurrency wallets allow you to buy and withdraw funds. However, the commissions for such operations will be impressive, therefore, if you want to "resemble" bitcoin a little, and then sell it in the same way, earnings can be literally eaten by the fees of the site. In addition, many large wallets, such as Blockchain.com, ask to go through the verification procedure.
There are various services that offer to buy or sell cryptocurrency directly in the mobile application. Each service has its own commissions for operations, they must be taken into account when buying and selling digital assets. However, it is better to choose the most reliable and proven option and overpay a little than to try to save money and lose everything.
The simplest and most understandable, but at the same time the most dangerous way is to exchange funds in person in a private exchanger. Such services are offered in Moscow and other large cities, but there is always the possibility of being deceived by unscrupulous buyers / sellers. Often, in such services, the price of digital assets for purchase is greatly underestimated, and for sale is significantly overestimated. Unlike P2P sites, here you will not be able to choose the asset price that is closest to the average market price.