Bitfinex users will be able to buy digital assets

Colin Baseman

Bitfinex, a Hong Kong-based exchange, offered the option of depositing and withdrawing funds using debit and credit cards. How to exchange fiat money for cryptocurrencies? What other exchanges offer to work with bank cards?

The well-known cryptocurrency exchange Bitfinex offered its users to buy cryptocurrencies directly through debit and credit cards. Clients of the platform get the opportunity to purchase Bitcoin, Ethereum, one of the most popular stablecoins, Tether and a number of other tokens of the popular ERC-20 standard.

Mercuryo and OWNR Wallet act as payment gateways. In the first case, you can work without verification. The second payment gateway offers services only to verified customers. Payment gateways are created in Estonia. By the way, in our article "Poloniex crypto exchange has returned the ability to conduct unlimited trading to unverified users" , you will learn how you can exchange cryptocurrency without confirming your identity on this site.

How to buy cryptocurrency with fiat money

There are several ways to purchase tokens with regular funds. You can do this via:

  • Exchangers (both online and offline).
  • P2p transactions.
  • Standard stock exchange transactions.
  • OTC.

Let's look at them in more detail.

Exchangers

These are special websites that offer a convenient and intuitive interface for quickly making transactions with cryptocurrency and fiat money. Here you can pay with debit and credit cards, as well as by bank transfer, as well as a wide range of electronic payment systems.

Popular exchangers give their customers certain guarantees. However, the risks of losing money in transactions through such services are also high. In addition to online exchanges, there are also offline offers when transactions are conducted in person. All the same risks are possible here as when working with online platforms. Security issues are not guaranteed.

In addition, online exchanges usually have higher commissions. Thus, such platforms offer a simpler and faster way to exchange Fiat money for cryptocurrencies, but without security guarantees and with more expensive transactions.

P2p transactions

A large number of thematic forums and chats have been created on the Internet, offering users to get to know each other, communicate and exchange fiat for cryptocurrencies. The main drawback here is also security, since you do not know who you are communicating with, what kind of person they are and whether they are a fraudster.

Usually, p2p transactions are concluded on the following principle. The seller transfers the cryptocurrency to your wallet, and you transfer the Fiat money to the specified account. The same thing works with electronic payment systems. The rate is fixed on any of the exchanges.

You can protect yourself if a p2p transaction is conducted with a good friend. In this case, the risks of losing your fiat money or cryptocurrency are significantly reduced.

Some exchanges offer p2p transactions between clients (bypassing the order glass). In this case, you buy or sell the cryptocurrency directly from the second party. One of the most popular exchanges in this area is LocalBitcoins.

Regular exchanges

In addition to Bitfinex, you can buy cryptocurrency for fiat money on the Coinbase platform. However, it is not available for CIS users. If you are a resident of one of the countries of the former Soviet Union, such sites as:

  • Exmo. Quite a popular platform that allows you to conduct both exchange and direct transactions for the purchase of cryptocurrency. It offers several types of orders and a large number of tokens. OTC deals are offered.
  • Yobit. It is also known in the circles of crypto traders as a platform that allows you to buy / sell cryptocurrencies for fiat, and conduct operations for the purpose of speculation (profit from the difference in exchange rates).
  • Cex. This cryptocurrency exchange offers buying and selling cryptocurrency for Fiat money. Provides a wide range of functionality, including analytical capabilities.
  • Binance. Here, the purchase of cryptocurrency for Fiat money is carried out through payment gateways. The exchange offers a wide range of functionality, margin trading opportunities and a high-quality platform for trading and investment.

And others. When working with any centralized exchange, especially one that is very popular, you can count on high liquidity.

Liquidity, to put in simple words, is an opportunity to quickly sell an asset at a favorable price. The higher the liquidity, the more chances to make a really good deal.

One of the disadvantages of working through centralized exchanges is their vulnerability. Many even very popular trading platforms are attacked by hackers from time to time, despite unprecedented security measures.

By the way, in 2016, attackers stole almost 120,000 bitcoins from the Bitfinex exchange, which caused the Bitcoin exchange rate to fall by 20%. At the time of the theft, the total amount stolen was the equivalent of $65 million.

OTC transactions

Are carried out on centralized exchanges. . The essence of over the counter transactions is that applications for the purchase/sale of cryptocurrency using credit and debit cards, as well as other payment means do not fall into the general order book.

The order book is a list of all orders for a particular currency pair. The term is taken from trading on the stock market, where orders to buy / sell shares and other assets also are in the general order book, where their market value is formed.

By the way, this type of transaction is also provided on the Bitfinex exchange. The essence of it is that you can buy and sell cryptocurrency in almost any size, without affecting the market price. This is especially convenient for those who want to make one-time large transactions at the current market price, without the risk of a sharp market jump or fall.