What are Cryptocurrency Exchanges?
Cryptocurrency exchanges are online platforms in which you can exchange one kind of digital asset for another based on the market value of the given assets. The most popular exchanges are currently Binance, GDAX and OKEx.
It is important not to confuse cryptocurrency exchanges for cryptocurrency wallets or wallet brokerages. Cryptocurrency wallets and wallet brokerages generally allow you to buy and sell a small range of popular digital assets (Bitcoin and Ethereum), which you can then send to a different exchange to trade for other digital assets like altcoins.
This statement is not entirely exclusive though; most cryptocurrency exchanges will usually limit their users to only trade digital assets for digital assets, but a few allow trades of fiat currencies such as U.S. Dollars for cryptocurrencies.
An example of such an exchange is Kraken, which currently accepts funds in the form of USD, JPY, CAD, and GBP, and supports trades with Monero, Ripple, and Litecoin as well as Bitcoin and Ethereum.
How to buy Bitcoin and Cryptocurrency on Binance
Now, Binance is making steps to make it possible for its customers to purchase crypto with fiat currency. Recently, the firm partnered with payment processor Simplex to provide cryptocurrency purchases with a credit or debit card.
To register with Binance please visit www.binance.com.
In this article, we will explain how to use Binance’s new feature to purchase some Bitcoin BTC, -2.12%. Binance allows cryptocurrency purchases with USD and EUR, with the minimum/maximum purchase being equivalent to $50 and $20,000 USD, respectively.
Even though trading cryptocurrency on Binance does not require a know-your-customer (KYC) process as long as you’re withdrawing less than 2 BTC per day, you will have to provide some of your personal details if you want to purchase crypto with credit or debit card through Binance.
Head over to Binance.com and make sure you’re using the right domain (due to its popularity, Binance is a popular target for phishing scammers). Log in to your account, head over to the “Funds” section on the Binance toolbar, and choose the “Buy with Credit Card” option.
Select the cryptocurrency you wish to purchase and enter your order amount. The second bar will display the total amount that you will be charged, with fees included. Buying cryptocurrency through this service comes with a fee of 3,5% or $10, whichever is higher. If you think these fees are too high, a cheaper option is buying cryptocurrency by funding your Kraken or Bitstamp account with a bank transfer.
Now, Binance will ask you to confirm your order. Please read the short disclaimer to understand the purchasing process better. Once you do, click “I have read and agreed the disclaimer” and “Go to Payment”. From here, we will finalize our order through Simplex.
Simplex will now ask us to verify our phone number through a 4-digit code and e-mail address through a verification e-mail.
Once you complete the verification, you will have to provide details about your Mastercard or Visa card details to Simplex in order to complete your purchase. After completing an identity verification process, Binance will complete your cryptocurrency order. Usually, it will take between 10 and 30 minutes for the crypto to appear in your Binance account.
If you already have cryptocurrency, and want to use Binance to trade between different coins, take a look at our other guide to see how you can get started.
Next up : OKEx Exchange
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