The fever of cryptocurrency is sweeping an ever-growing number of ambitious investors. To join the “club,” every newcomer needs what is indispensable for crypto trading—digital currency. Where to get it? It’s simple—buy it with fiat money. However, not everyone knows how to do this quickly, profitably, and without risks. In this article, we’ll detail how to store cryptocurrency and explore two main methods of purchasing it, complete with detailed guides.
Storing Crypto Assets: Wallets and Exchanges
According to analysts from Immunefi, since the beginning of 2024, hackers have already managed to steal over $200 million from crypto projects. Thus, as a defense against malefactors, the first step towards effective and secure digital asset management should be choosing the optimal storage method. It’s most convenient to store cryptocurrency in a wallet or on an exchange.
Wallets are either custodial or non-custodial. The non-custodial way of storing cryptocurrency is very secure but not always convenient in use. We recommend paying attention to cold wallets like Trezor and Ledger, considered among the most secure modern solutions for digital asset storage.
Conversely, the custodial method is more convenient and faster to use but less secure. We recommend Cropty Wallet: an excellent tool for managing and storing cryptocurrency with the highest level of protection and accessible from any device.
Many traders use their exchange account as a storage facility. A big advantage is the ease of account and asset recovery. Among the variety of cryptocurrency exchanges, we recommend ByBit. Its benefits include round-the-clock support, no KYC verification, high transaction speed, and full control over your funds.
Purchasing Cryptocurrency: Through P2P and Exchangers
In Nigeria, buying cryptocurrency is not prohibited but it is not regulated. The Central Bank of Nigeria (CBN) banned banks and financial institutions from dealing with cryptocurrency. In 2021, the Central Bank issued a Central Bank Digital Currency (CBDC) called eNaira. The cryptocurrency is used for transfers, payments, and investments.
The simplest methods for purchasing digital coins are via P2P platforms and special exchangers. Let’s examine each option in more detail.
P2P
This method allows for direct purchase of crypto assets from other users. The principle is as follows: you find an ad from someone willing to sell crypto, transfer the specified deal amount to their bank electronic account, and then the counterparty sends the coin to you.
In this case, there’s a risk of encountering a fraudster who will take the money and disappear. Therefore, to ensure the safety of the transaction, the involvement of a guarantor or escrow service is necessary. Their task is to ensure that the participants fulfill their obligations. P2P platforms handle this by blocking the cryptocurrency in such a service’s account and transferring it to the buyer only after fiat money has been credited.
Deception in P2P is impossible. If the counterparty fails to confirm payment receipt within the allocated time, the buyer can provide the service with a receipt or proof of transaction. In such a case, the seller’s rating will be lowered, and they may also be fined.
The advantage of buying cryptocurrency through P2P is its simplicity. The payment passes as if transferring money from one card to another. This method might seem risky, but in reality, all popular P2P platforms guarantee complete safety for each transaction participant.
Other advantages of this method include:
- Lower commissions and a more favorable exchange rate compared to centralized exchanges, allowing significant savings on large transactions;
- A wide choice of payment methods (bank transfer, electronic wallets, payment systems, etc.);
- A higher level of privacy compared to centralized exchanges (P2P services generally do not require KYC procedures);
- The flexibility of purchasing anytime and anywhere.
For those interested in this purchasing method, we recommend the P2P platform on ByBit. We’ve written a detailed guide explaining step by step how to buy cryptocurrency using a P2P service.
Exchange Platforms
Exchange platforms are commercial platforms that profit from the currency spread between buying and selling digital coins (spread). This method allows for the legal purchase of cryptocurrency without verification using fiat money (through bank card transfers or digital wallets).
Exchange services independently seek legal ways to quickly circumvent potential restrictions to make the purchase process as convenient and fast as possible for users. However, they charge a fee for this: often, the exchange rate for buying is inflated, while for selling, it’s deflated (when compared to the market offer).
The purchase algorithm is very simple, resembling the process of sending money through mobile banking. Besides buying with fiat money, other cryptocurrencies can be used. Payments are made as if purchasing goods, services, or as P2P transfers from one account to another (from person to person).
Key advantages of buying cryptocurrency through exchange platforms:
- Speed. After payment, the digital currency is almost instantly credited to the account, which is convenient for quick purchases.
- Anonymity. Many platforms do not require KYC (Know Your Customer) verification.
- Security. Exchangers use reliable security protocols and payment systems, minimizing the risk of fraud.
- Mobility. You can exchange fiat money for cryptocurrency from any device with internet access.
If you plan to use exchange services, we recommend using the BestChange service. With its help, you can find a suitable exchange point, compare the conditions of different services, and choose the most favorable one. We have also prepared a detailed guide for you, where we explain step-by-step how to buy cryptocurrency through an exchange platform.
