Fiat currency refers to non-digital money. A centralized power controls fiat money. Several economic elements, as well as supply and demand, determine the value of fiat money. And these are the main differences between fiat currency and a cryptocurrency like Bitcoin. Examples of fiat currencies include Dollars, Pounds, and Yen.
On the other hand, there is no centralized power that controls digital currencies. Thus, no government can claim to be the legal tender of Bitcoin and other cryptocurrencies. The global acceptance of cryptocurrencies, especially Bitcoin, is growing. Perhaps, that’s because no entity controls their making, distribution, and price.
Initially, mining was the only way to own Bitcoin. If not mining, individuals received Bitcoin from acquaintances. But this has changed with the increasing popularity of cryptocurrencies. The emergence of Bitcoin exchanges has made purchasing this cryptocurrency easier. As long as you have money, you can use platforms like the crypto engine app to trade fiat money for Bitcoin. Such an app makes trading Bitcoin using fiat money easier. But, how do you buy Bitcoin using fiat money? Is it safe to buy Bitcoin with fiat currency?
Tips for Trading Fiat Currency for Bitcoin
If new to crypto trading, you don’t want to lose your fiat money trying to buy Bitcoin online. That’s why you came across this article. Here are useful tips to help you buy Bitcoin safely using fiat money.
Open a Digital Wallet
Since Bitcoin is a digital currency, you need a wallet for storing it. Therefore, the first thing to do when trading fiat currency for Bitcoin is to open a wallet. Alternatively, choose a Bitcoin exchange that allows you the option to store your Bitcoin in it.
Check the Exchange Availability in Your Area
Before you buy Bitcoin with fiat money, make sure that the exchange you want to use is available in your location. Some Bitcoin exchanges are not available in some areas. To have an easy time buying Bitcoin with fiat currency, choose a Bitcoin exchange that’s available in your location.
Check the Reputation of the Exchange
Take your time to find out how reputable the exchange is. Are people that have used the crypto exchange happy with it? Is it secure or have people hacked it recently? Check different online forums to determine whether people have complained about the Bitcoin exchange before you use it.
Every Bitcoin exchange has its rates. Take your time to find out more about the exchange rates of different trading platforms to get the best deal possible. For instance, check at least three Bitcoin exchanges to get a hint of the average, acceptable rate.
You have worked hard to earn your fiat money. Therefore, the last thing you want is to lose it trying to buy Bitcoin. Therefore, do your due diligence to ensure that the exchange you choose is safe. A safe Bitcoin exchange will ask you to provide some form of ID verification. Although the verification process can take time, it makes the platform safer than an anonymous crypto exchange.
Common Fiat Currencies for Buying Bitcoin
Bitcoin trading exchanges introduce more fiat currencies gradually. However, some fiat currencies dominate most crypto exchanges. And this is partly because of local regulations. What’s more, some fiat currencies are popular than others.
Currently, the US dollar dominates most crypto exchanges. And this is the main fiat currency that most people use to buy Bitcoin. Other fiat currencies used to buy Bitcoin include GBP and EUR. More and more people are trading Bitcoin as more crypto exchanges that accept different fiat currencies emerge.
The Bottom Line
Buying Bitcoin with fiat money is now possible and easy, thanks to crypto exchanges. However, it would help if you were careful when choosing a Bitcoin exchange. Ensure that the platform you choose is reputable, safe, and genuine to avoid losing your hard-earned money.