Buy, sell and withdraw cryptocurrency. The main ways
Beginning crypto-investors often face difficulties already in the initial stages. However, it is possible to act more effectively if you have basic knowledge.
In 2021, the crypto market has grown manifold, with the industry attracting more and more users. However, you need to be prepared for it, because digital assets are different from traditional finance. Therefore, it is important for novice investors to understand what services, platforms and ways to buy/sell cryptocurrency exist. In this case, it is possible to reduce the risks.
One of the easiest ways is through P2P exchanges like LocalBitcoins. Ads for buying or selling cryptocurrency are posted there. You can choose the option with the rate that suits you and make the exchange. This is a quick way to exchange digital money into fiat and vice versa.
It should be remembered that in this case there is a probability of bank transfer cancellation, so there is a risk of losing your bitcoins or altcoins. That's why it's better to use services with escrow accounts (they hold funds until the transaction is completed).
To withdraw funds from the same LocalBitcoins, you will need to go through a verification process, so you can't count on anonymity. The platform will require passport details and other personal information.
Another option is the centralized exchanges. KYC and AML procedures are also present there. However, the transaction is likely to pass instantly if the platform has no liquidity problems. 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, if we are talking about cryptocurrency, to hardware wallets (they are considered the safest in this area). In addition to hacking, which threatens large trading platforms, problems can 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 transactions will also be impressive, so if you want to "hike" a bit of bitcoin, and then sell it the same way, the earnings can be literally eaten up by the fees of the site. In addition, many large wallets, such as Blockchain.com, ask for verification.
There are various services that offer to buy or sell cryptocurrency directly in a mobile app. Each service has its own transaction fees, which should 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 easiest and most straightforward, but also the most dangerous way is to exchange funds in person at a private exchanger. Such services are offered in Moscow and other large cities, but there is always a chance of being cheated by unscrupulous buyers/sellers. Often, the rates of digital assets for purchase are significantly lower, while the ones for sale are significantly overvalued. Unlike P2P-platforms, here you will not be able to choose the closest to the average market price of an asset.