It is easy to buy and sell cryptocurrency online these days. There are several options ranging from the use of web platforms to mobile apps. However, choosing the best, especially if you are a rookie in the industry, can be an uphill task.
Buying and selling cryptocurrency online is more popular as opposed to offline options. In fact, offline options such as the use of a physical cryptocurrency or Bitcoin ATM use the internet to access the blockchain and transact.
That said, let’s dive into the best ways to buy and sell cryptocurrency online.
What You Need to Buy and Sell Cryptocurrency Online
Before you buy and sell cryptocurrency online, it is crucial to be prepared. Whether you will use web platforms or mobile exchanges, you need to have a digital wallet. This is a virtual wallet where digital assets are stored. They are hosted by various platforms, although physical crypto wallets in the form of flash drives are available.
Investors also need fiat money in banks or bank cards, online payment platforms, mobile payment apps, or any other popular payment option. If you are not doing a crypto swap, which means exchanging one crypto for another, you will be using fiat money to buy the coins.
Buy and Sell Cryptocurrency Online on Web Exchanges
CEX platforms – The most common way to buy and sell cryptocurrency online is through CEX (centralized exchange) platforms. These are platforms operated by large financial companies, meaning that they have high liquidity that makes exchanging instant. Some are only suitable for certain regions of the world while others are international. For example, NakitCoins is best for people in Turkey, Coinbase is popular in the USA, and Binance is an international crypto exchange.
DEX platforms – On the other hand, DEXs (decentralized exchanges) are becoming more popular. They allow peers to buy and sell cryptocurrency online amongst themselves. Therefore, they do not have liquidity but rely on connecting buyers and sellers quickly to transact. They are common because they are more affordable that the CEX platforms. You have probably heard of Uniswap, Defi Swap, Pancakeswap, and Curve, which are popular examples of DEX platforms.
Buy and Sell Cryptocurrency Online on Mobile Apps
We are in the era of mobile apps. With many people acquiring smartphones all over the world, online service providers have started moving their services online. The cryptocurrency sector has not been left behind because both CEX and DEX platforms now have mobile apps. However, some exchanges have decided to focus on apps alone.
Mobile exchanges operate like web platforms and have all the features that a crypto investor needs to transact. But you still need to choose a reputable one and use it appropriately for successful transactions. If you travel a lot, it is best to choose mobile exchange apps because they are convenient on the go.
Anyone can buy and sell cryptocurrency online using the above options. Both options are more convenient than having to walk into a physical exchange, but they have associated risks that you should check for and practice caution to keep at bay.