The answer is simple: Nothing! The only possibility to receive cryptocurrencies without buying them on a cryptocurrency exchange is as a gift or by stealing them (but, of course, that is not an option).
Where to buy cryptocurrencies safely?
In the wake of the accelerated and, perhaps for some, disproportionate growth of the cryptocurrency market, the main and most recurrent question investors ask is: Where to buy cryptocurrencies safely? Well, the most common way to buy Bitcoin, Ethereum, Ripple (XRP) and/or any other type of digital currencies is through exchanges. You can also buy them at special ATMs that exist for cryptocurrencies or someone can send them directly to your e-wallet.
Choosing an exchange is a very delicate issue, as some of them are not really protected technologically speaking. Many have a low level of security, which makes them easy targets for hackers and as a result you could lose your coins, with no chance of recovering them, as they also do not have collateral funds to back up your investment. And, others have been created by skilled fraudsters, who seek to attract novice investors who are looking for where to buy cryptocurrencies, to disappear at some point once they have your money.
On the other hand, there are currently a large number of Exchanges, exchanges and storage and exchange houses on the crypto-asset market, which are trusted by a large number of people who have benefited from their services. They are also backed by the experience provided by thousands of successful operations in the digital market. The main exchanges we can cite in terms of trading volume are Binance, Kraken, Coinbase, E Toro, CEX-10, Coinmama, Bitpanda, Luno, bitFlyer.
Types of exchanges
There are a large number of exchange platforms that have developed hand in hand with the rise of cryptocurrencies. Among them, we find that they are divided or classified into two types or modalities of exchange according to the degree of intermediation or participation of third parties in the transaction and their service proposal. Based on this, we can speak of Centralised Exchange (CEX) and Decentralised Exchange (DEX). Although both types fulfil the same function, they have different characteristics in terms of the way they do it.
Centralised exchanges (CEX) operate in a similar way to bureaux de change. They are generally companies that function as intermediaries and are responsible for the exchange and custody of their clients’ funds, including their own funds. They also have a structure consisting of a platform and even physical offices in different cities. A disadvantage of this type of exchange is that your money is locked up on that platform, far from your sight in a joint account of the company.
Decentralised Exchange (DEX), unlike the previous one, in this type of Exchange the transaction operations are carried out directly between the parties interested in the exchange. That is, without the intermediation of the company or its money. Basically we can define them as sites or web pages where people interested in buying and selling cryptocurrencies make their offers and contact each other directly. These platforms use the exchange only as a guarantor of payment before the release of funds.
Top exchanges to buy cryptocurrencies
If you are thinking of investing in cryptocurrencies, know some of the safe and reliable exchanges to buy them:
Bitvavo
Bitvavo is a Dutch cryptocurrency exchange, based in Amsterdam. Bitvavo wants to make cryptocurrencies accessible to everyone and become a leader in Europe. That is why it has opted for a user-friendly platform with the most competent commissions on the market, between 0.03% to 0.25% and a user-friendly platform.
Bitvavo operates in 27 European countries and is considered the safest exchange in Europe due to its regulation by the Dutch Central Bank and the Dutch Chamber of Commerce. Bitvavo has a EUR 100,000 refund guarantee in case of losses due to unauthorised access to your account.
Binance
Binance is a P2P crypto exchange founded in 2017 by Changpeng Zhao with locations in Taiwan and Malta in the wake of the Chinese ban. It is currently considered the leading cryptocurrency exchange, the largest in the world. With a platform that allows trading almost 200 types of digital assets, it has the capacity to process 1,400,000 transactions per second, and an average daily trading volume of 2,000,000,000. One of its advantages is that the Binance platform can be accessed from any type of device.
Kraken
Kraken is a cryptocurrency exchange service platform for its registered users. In addition to the ability to exchange between different cryptocurrencies, it also allows trading these crypto-assets with fiat currency, i.e. traditional money. The company currently operates with a trading portfolio of 20 types of cryptocurrencies, including major digital currencies such as Bitcoin, Ethereum, Litecoin and others, and 5 different types of fiat currencies such as the US dollar and euro.
Coinbase
Very similar to Kraken, Coinbase Inc. is a platform designed to trade, exchange and store cryptocurrencies. With crypto asset trading operations in 32 countries, it allows free exchange transactions between more than 150 different digital currencies listed on its platform, including major ones such as Bitcoin, Ethereum and variations thereof. It also trades in fiat currencies. They also offer digital asset storage and management services in 190 countries.
eTogo
It’s not just a stock brokerage, it’s a broker specializing in what’s called social trading. It operates a wide range of financial instruments and funds, such as currencies, stocks, futures and, of course, cryptocurrencies. The company currently has offices in Israel, the UK and Cyprus. On this online investment platform, users can share their investment experience so that other users can benefit from the experience as well. It has an excellent level of security and offers good guarantees for your investments.
Cex-10.
Founded in 2013, Cex-10 has over 4 million active users registered on its trading platform. It is recognized as one of the first platforms to facilitate the exchange of cryptocurrencies into fiat currencies and vice versa, using financial products such as credit cards and bank transfers for its customers to make payments. It currently lists the major cryptocurrencies on the market and exchanges between them and for traditional currencies such as the U.S. dollar, euro, pound sterling and ruble.
Coinmama
Coinmama is a convenient platform that allows you to exchange fiat money for different types of cryptocurrencies. The transaction process is also easy to use, the functions are simple, clear and easy to find. Even if you are new to the industry, you can easily figure out how to use this platform. However, users have to pay high transaction fees. The platform charges the user a fee of up to 5% per transaction.
Bitpanda
Bitpanda is a cryptocurrency trading platform operator based in Vienna, Austria. It has been providing services for buying and selling digital financial assets since 2014. It provides crypto-asset trading services to a growing number of customers, which currently exceeds 2 million users. Transactions on Bitpanda can be made in a wide range of cryptocurrencies, according to its goals and strategies, where its users benefit from high-quality API services and applications.
Luno
Luno is both a cryptocurrency wallet and an exchanger. It offers a place to buy, sell or store cryptocurrencies thanks to a solution that is simple and secure. The company is headquartered in London, with regional offices in Singapore and Cape Town. Today, the company’s services are used by more than 6 million users in 40 countries. Its exchange transactions are only available in some countries, including European states, for other countries only the wallet is available.
BitFlyer
BitFlyer is an online broker launched in 2014. Its founders are Takafumi Komiyama and Yuzo Kano. The main pillars of the platform’s foundation are transparency and security of its operations. Due to the rapid growth of its sector, bitFlyer created a subsidiary in the U.S. in 2017 and another in Europe in 2018, allowing the platform to expand its reach from an investor perspective. The platform has a user-friendly, intuitive, smooth and ergonomic interface.
Read reviews of the best crypto exchanges here.
