Buying and Selling

Several methods exist for acquiring cryptocurrency:

• Centralized Exchanges: Platforms like Binance, Coinbase offering fiat-to-crypto trading
• Decentralized Exchanges: Peer-to-peer platforms without intermediaries
• Peer-to-Peer Marketplaces: Direct trading between individuals
• Bitcoin ATMs: Physical machines converting cash to crypto
• Earning: Receiving payment in cryptocurrency for goods or services

When choosing a method, consider factors like fees, security, privacy, and available payment options.

Centralized Exchanges (CEX)

Centralized exchanges act as intermediaries between buyers and sellers, offering:

• Simple user interfaces for beginners
• High liquidity and trading volume
• Fiat on/off ramps (bank connections)
• Various trading options (spot, margin, futures)
• Customer support

Popular examples include Binance, Coinbase, Kraken, and FTX.

Decentralized Exchanges (DEX)

Decentralized exchanges operate via smart contracts without custodying funds:

• Direct wallet-to-wallet trading
• No account requirements or KYC
• User maintains control of private keys
• Limited fiat options
• Sometimes higher transaction fees

Examples include Uniswap, dYdX, SushiSwap, and PancakeSwap.

Peer-to-Peer Marketplaces

P2P platforms connect buyers and sellers directly:

• Multiple payment methods (bank transfers, cash, gift cards)
• Escrow services to protect transactions
• May offer increased privacy
• Usually higher fees or spreads
• Potential for in-person cash exchanges

LocalBitcoins, Paxful, and Bisq are popular P2P options.

Bitcoin ATMs

Physical kiosks for buying (and sometimes selling) cryptocurrency:

• Convenient cash-to-crypto conversion
• Typically higher fees (5-10%)
• Usually require phone verification
• Not available in all locations
• May have transaction limits

Earning Cryptocurrency

Alternative acquisition methods include:

• Accepting cryptocurrency as payment for services
• Mining or staking to earn rewards
• Participating in bounty programs or airdrops
• Contributing to DAOs or protocols
• Playing crypto games or using apps with rewards

Best Practices

• Start with small amounts when using a new platform
• Verify addresses carefully before transferring
• Research platform reputation and security history
• Consider withdrawal fees and limits
• Move significant amounts to private wallets
• Keep records for tax purposes