Is the Process of Purchasing Crypto and NFTs Complicated

Bitcoin was the first cryptocurrency created in 2009 by a programmer called Satoshi Nakamoto. Today it remains the most popular and valuable digital currency across the world with a market cap of over $846 billion.

This revolutionary currency has enabled people to store and transfer funds in a decentralized, trustless environment — paving the way for crypto and blockchain-based technologies.

Shortly afterward, in 2015 the Ethereum blockchain was created. This introduced the concept of non-fungible tokens (NFTs). These tokens are unable to be divided into smaller units, which makes them distinct from regular cryptocurrencies.

NFTs represent unique digital items. For example, artwork, game items, and collectibles.

In June 2017, John Watkinson and Matt Hall created CryptoPunks. It was one of the first non-fungible tokens on the Ethereum blockchain.

Crypto and NFTs continue to evolve and gain mainstream acceptance — and thus buying them is easier

With a wide acceptance to use as currency and digital assets, crypto and NFTs have already become popular investment vehicles — with investors worldwide spending billions of dollars in the space.

When you are versed with its lingo, have completed due diligence, and are all set to buy crypto and NFTs; the first step is to find an exchange or platform to buy them on.

While the process of buying them has definitely become easier with the advent of many different exchanges, certain factors like transaction fees, availability of coins and trustworthiness need to be considered.

Buy Bitcoin with a credit card, or other preferred payment methods

It can be daunting to try to buy cryptocurrency and NFTs — more so for those who are new to it. But it’s not, really!

Fortunately, today reputed platforms let you buy Bitcoin with a credit card in simple steps, like:

• Enter the amount in BTC or fiat currency;
• Input your BTC wallet address, and lastly;
• Verify your email and basic information.

That’s all you need to do to buy or sell crypto today. Similarly, you can also purchase Bitcoin using PayPal, wire transfer, cash, direct bank transfer, and more.

Before you buy BTC – assure that the platform is a reputed one and has security protocols in place. This will prevent you from falling prey to a scam. It’s also important to make sure that the platform supports your preferred payment method and has earned the trust of industry leaders and the blockchain ecosystem.

Fees and policies differ from one exchange to the other. So, research the options before finalizing a platform.

Be sure to check customer reviews and consult online forums before making any decisions.

Additionally, it’s important to note that cryptocurrency is volatile and its value may fluctuate.

6 things to consider when buying bitcoin

In this section, we deep-dive into what you need to consider when buying bitcoin. By doing so, you will be ready to purchase or sell them with zero doubts.

1.     Security

Bitcoin exchanges need to adhere to security standards like:

• Secure encryption: User data and information can only be protected with stringent encryption standards, like AES-256 block-level storage encryption, two-step authentication, and SSL (Secure Sockets Layer) protocols.

• Rigorous verification process: User verification processes need to be strict and secure to avert fraudulent activities like money laundering.

• Secure storage: There should be secure cold storage for offline storage of customer funds. by doing this, hackers can be prevented from accessing customer funds even if the exchange were to be compromised.

• Know Your Customer (KYC) Compliance: Bitcoin exchanges must adhere to KYC regulations that require them to verify customer identities and backgrounds. This helps to prevent money laundering and other suspicious activities.

• Backup: It is necessary for exchanges to have a backup and disaster recovery plan in the event of a system failure or security breach. This should include stored customer records, stored customer funds, and regular backups of their customers’ wallets.

Lastly, it’s great if the exchange has a bug bounty program in place as it means that the platform is serious about the customer’s security.

2.     Price

The price of bitcoin is in constant flux. Hence, someone planning to invest their time and money into it must do their research.

This could include understanding how it has been performing over the past few months.

Doing so will provide a bird’s eye view of how volatile the cryptocurrency is, the factors that influence its market price, and the assumptions one needs to make before buying. Usually, the supply and demand of the market determine the price of bitcoin.

Other factors like government regulations, geopolitical events, investor sentiment, and market psychology play a role in its price too.

3.     Fees

Today multiple cryptocurrency exchanges support credit, debit card, wire or PayPal purchases, and the fees range from 1% – 5%.

It is important to understand the fees you will be charged and the fee structure of the platform you are using.

Transaction fees also fluctuate based on the amount, selected payment method and the currency being used.

4.     Regulation

When exchanging fiat currency (regular currency like dollars) for cryptocurrencies, it’s essential to use an exchange that is trusted and regulated. For example, Cryptocurrency exchanges fall under the regulatory scope of the Bank Secrecy Act (BSA) in the USA.

Per Comply Advantage “In practice, this means that cryptocurrency exchange service providers must register with FinCEN, implement an AML/CFT program, maintain appropriate records, and submit reports to the authorities”

Regulations are implemented by government bodies like the Financial Crime Enforcement Network (FinCEN) to protect consumers from fraud and financial crime. In general, they require the exchange to maintain certain levels of recordkeeping and reporting, as well as develop and use anti-money laundering (AML) and know-your-customer (KYC) procedures.

For exchanges to be considered trusted and regulated, they must also hold proper licenses.

 This means that the exchange must obtain a license to operate as a money transmitter in any state where it has customers.

MoonPay for instance holds 36 Money Transmitter Licenses and is an accredited US FinCEN-registered Money Services Business.

5.     Reputation

Do some research on the platform or exchange you are using to make sure it is reputable and trustworthy. Here are some more tips when doing due diligence;

• Check reviews from other users online
• Read through the platform’s terms and conditions Look for a strong customer service system
• Verify any regulatory organizations that have approved the platform
• Ask questions on forums or social media Investigate how your information and funds are stored

By doing your due diligence, you can make sure that any store, platform, or exchange you use can be trusted.

6.     Exchange rate

Bitcoin’s price can fluctuate significantly.

Inflation, interest rates, political stability, geopolitical events, and speculation play a role in Bitcoin’s exchange rate.

Other cryptocurrencies, such as Ethereum, Ripple and Litecoin, may also influence Bitcoin’s price.

Since bitcoin functions as an open market — its exchange rate is determined by the forces of supply and demand too.

Cryptocurrencies and NFTs are on a hockey-stick growth

From the perspective of investors and developers, the future of cryptocurrencies and Non-Fungible Tokens (NFTs) looks very bright. 

Per Exploding Topics, Between 2020 and 2021, the NFT market increased by over 20x. Moreover, 97% of respondents in a survey by Binance considered digital assets, specifically cryptocurrency, as a safe and viable way of earning an income through investing.

The sheer amount of venture capital that has been pumped into the industry is another sign that investors see cryptocurrency and NFTs as being on a hockey stick growth pattern.

Venture capitalists recently invested over $33 billion into crypto and blockchain startups, as per a report by Galaxy Digital.

Furthermore, there are several industry-specific trends that support the growth of cryptocurrency and NFTs. For example, the gaming industry is utilizing NFTs to help players control their digital assets, while web3 technology allows users to take full ownership of their data and earn rewards using cryptocurrency.

The success of both cryptocurrency and NFTs will be driven by the increasing acceptance of these technologies by the public and by the governments of various countries.

Moreover buying Bitcoin and NFTs has become significantly easier whether you want to buy with a credit card or PayPal.

Additionally, the number of merchants that support crypto payments is increasing as well, which will further increase the demand for cryptocurrency and NFTs.

Like this article? Here are some more recommended reads:

1. CRYPTO 101: HOW TO CHOOSE THE BEST BITCOIN WALLET
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