A popular way of buying crypto is without going to a centralized exchange first. In general, this is the safest way to protect your mighty crypto. In this article, the best platforms to do so.
When trading Bitcoin or any other cryptocurrency one has to go to exchange first. The first step is to do a sign-up and verification process and after that deposit some crypto or fiat. This is quite normal for crypto traders but it also comes with high risk. In the past, a lot of starting crypto exchanges suffered DDOS attacks or were even hacked and lost funds. A good example is the failure of Mt. Gox in the early days were about 850 000 bitcoins were lost.
Trusting a cryptocurrency exchange
This is just one example of the disasters happening in starting crypto exchanges. Also, the idea of Bitcoin is to be a decentralized currency or value of exchange and to store your crypto on a centralized exchange makes it quite ironic. But if you still want to trade, how can you be profitable without trusting an exchange? In this article a few ways to buy crypto this way.
Places to buy crypto without trusting a centralized exchange
How does this all work?
As explained above, being an investor in this cryptocurrency space comes with some risk. Also, if you are able to protect yourself, the rewards can be very good, in fact, they can be life-changing if bought at the right time! In general, to be safe, buying cryptocurrency this way involves two steps. First, you have to get yourself a proper cryptocurrency wallet that holds your private keys. Additionally, there are two options: software wallets and hardware wallets.
Secondly, after setting up a proper wallet, you can go to the platforms summed up in the list above. In addition, you perform the requested transaction at their platform by buying some cryptocurrency. Moreover, these platforms use a very simple procedure when buying crypto that is very straightforward. During this procedure, it’s very important to give your public key which the platform will use to send your newly bought crypto. That’s all, very simple, isn’t it? Next, in this article a deep dive into the several platforms that will not hold your private keys when buying cryptocurrency.
Buy Crypto without exchange: Coinswitch
Coinswitch offers the possibility to buy crypto or sell cryptocurrency. Buy Bitcoin or Ethereum is possible without going to exchange first. The idea is that they will get your crypto from the exchanges against the lowest exchange rate. It doesn’t matter where you are located in the world, because their platform offers you to trade from anywhere. Trading crypto can be done in more than 300 different cryptocurrencies and tokens. Like other centralized crypto exchanges out there, data about volumes, market cap & supply is also available on their platform.
Setting up a trade
When trading on their platform, the ordering process is different compared to traditional exchanges. When setting up a trade three things are very important in the trading process:
Compare rates across exchanges and find the best exchange rate.
Follow simple steps to exchange your cryptocurrency.
It’s very easy to track orders when an order is set up.
One big pro of Coinswitch is that people can purchase Bitcoin or Ethereum with a credit/debit card. Not only Bitcoin or Ethereum but they offer 100+ tokens which can be bought this way. They support USD(US Dollar), JPY(Japanese Yen), RUB(Russian Ruble) and EURO to purchase cryptocurrencies.
No need trusting an exchange
Coinswitch offers a fee for every transaction or converts you try to make. This depends on the exchange you choose for buying.
Note: This fee does not include any amount charged by the exchange itself and the network fee.
It’s very good to know that you don’t store any crypto on their exchange when trying to buy it. You just give the public key of your wallet address and after transaction completion, the funds will directly be transferred to your wallet.
Buy Bitcoin without exchange: Coinmama
Coinmama offers the possibility to buy or sell cryptocurrency. Buy Bitcoin or Ethereum is possible without going to exchange first. They are a known player in the crypto space and have been there since 2013. To buy or sell crypto, you can do it from within their platform and they choose the exchanges with the lowest exchange rate. It doesn’t matter where you are located in the world, because their platform offers you to trade from anywhere.
Ways to buy Crypto
If you don’t have a credit card but want to buy crypto, there is the possibility to buy it with a debit card. Currently, Coinmama accepts payments with Visa and Mastercard. Other payment options like Paypal, American Express or Discover aren’t accepted yet.
I think it’s important to know that when buying with credit or debit card, you have to pay a small fee due to the commission by VISA or Mastercard. The Bitcoins you are trying to purchase will be sent to you in a few minutes once your account is verified. Coinmama offers industry-leading purchase limits.
If you are living in the European Union or Great Brittan then there is another option for you available. It’s also possible to buy Crypto with a SEPA bank transfer. Currently, there is a limit of about 12000 USD per day but with no extra fees.
Recently Coinmama offered a new option in their service. Now it’s also possible to sell Bitcoin and receive Euro on your bank account. This option is only available when you are a European resident.
In a few steps the way to do this:
- Login to your Coinmama account and select sell
- Choose the amount of Bitcoin you like to sell
- Create order(Enter bank account, IBAN, country)
- Send the coins to the wallet of Coinmama
One thing I think is quite unique in their service is the offer system they have. If you want to buy a bigger amount of Bitcoin($1000 or $3000), they come with a discount of 15% which is a limited offer. This is something I haven’t seen before at other platforms.
Get Crypto without exchange fast: PayBis
Next, in the list of platforms that don’t hold your private keys is PayBis. This platform recently(2016) showed up in the cryptocurrency space and their service is mostly targetted on buying or selling crypto quickly. In fact, this platform is probably the best option if you want to buy bitcoins fast. On their website, they claim that this process can be done in just 15 minutes. In general, this is how it works:
- Create a Bitcoin wallet. If you don’t have one yet, there are two options: software and hardware wallets.
- Start a new transaction on the PayBis platform.
- Enter your public key(Bitcoin address) and pay with a credit card.
- Within 15 minutes you will receive Bitcoins in your wallet.
Features of Paybis platform
Although their services are aimed at acquiring cryptocurrency fast, also PayBis has different features to offer. Firstly, it’s possible to buy up to $20000 worth of crypto in a single transaction. Moreover, it comes with a monthly limit of $50000. Furthermore, their services are on a global scale and not limited to western countries only. Finally, the support on this platform is available 24 hours a day and will help you with questions or urgent problems.
Alternative ways to buy cryptocurrencies
Last but not least, I want to mention that besides credit cards, they also offer to buy Bitcoin with Skrill, Neteller, Payeer, and Advanced cash.
Buy Crypto without exchange: Wirex
Wirex offers the possibility to buy or sell cryptocurrency. Purchase Bitcoin or Ethereum is possible without going to exchange first. They are a known player in the crypto space because they were one of the first companies that offered a bitcoin debit card. When I’m traveling the world I’m also using their card to pay with crypto and I think their service is amazing.
No need for trusting an exchange
To buy or sell crypto, you can do it from within their platform or App and they choose the exchanges with the lowest exchange rate. It doesn’t matter where you are located in the world, because their platform offers you to trade from anywhere.
It’s also possible to exchange your crypto in traditional currencies. Currently, they offer 10 traditional currencies to be exchanged: EURO, USD(US Dollar), GBP(British pound), YPJ(Japanese Jen) and some others.
Buy crypto with SEPA and selling cryptocurrencies
Buying or selling cryptocurrencies is limited to only 8 at the moment. These are the ones that are ranked top 10 in Coinmarketcap. Bank transfers are allowed by SEPA and their service is offered on a global scale.
Unique in their service is their ‘Cryptoback’ program. This service is one of my favorites because it gives you the ability to earn crypto while you buying something with crypto. Every transaction you make gives you 0.5% back in BTC. This can only be done when you are in the possession of a Wirex card and do an in-store purchase. The rewards are paid instantly and in Satoshis, the smallest unit of Bitcoin.
When you are a business and have plans with Crypto, Wirex could also be an option for you. Business accounts can use the service of paying/receiving Crypto. The exchange between fiat and Crypto is possible(and any combination therein) at Interbank and OTC rates. For registered businesses, there is no transaction limit for Bitcoin on the exchange. With this service, businesses can do banking on a global scale without limitations of the traditional bank account.
Purchase Bitcoin without exchange: Changelly
Changelly is an instant cryptocurrency exchange that allows to exchange crypto fast and buy Bitcoin, Ethereum, Bitcoin Cash for USD and EUR. The service mechanism searches for the best crypto-to-crypto rates and supports over 130 cryptocurrencies available for exchanging one to another.
Changelly offers a trusted service to almost 2 Million users worldwide and without revealing user identities. They offer good security service and after you have set up an account at their platform you have to enable 2FA(2 step verification). I think this is a good thing and makes Changelly trustworthy.
Fixed rates are not offered on their platform, this is because of the volatile nature of cryptocurrency. Instead, rates are tied to the latest transactions and the lowest at that time of date. The commission fee is charged at a rate of 0,5% for crypto-to-crypto swaps.
For bank transfers, they have a partnership with Simplex and Indacoin. Simplex offers services for direct payment with ETH, BTC, and BCH. When buying crypto this way you don’t need the double conversion which is very usual at other crypto exchanges.
Limitations for buying with fiat
Like I explained earlier, fiat transactions are handled by their partners Simplex and Indacoin. They both have some rules and regulations you should know:
- USA, Canada, and Australia
$50 limit for the first transaction made. After that, the next purchase can be done in 4 days and has a limit of $100. After 7 days the limit will be raised to $500. In one month there are no limits.
- CIS region(Russia/Ukraine/Belarus)
The first transaction has a limit of $200. For the first week, the limit is set to $2000 and for the entire month $10000.
- EU and other countries
Like the USA, Canada, and Australia. The first week has a limit of 6 payments.
- The first transaction has a minimum of $50 and a maximum of $10000
- The daily limit is set to $20000
- The monthly limit is set to $50000
Buy Bitcoin without exchange: Shapeshift
Shapeshift is one of the first digital exchange platforms out here and has been in the cryptocurrency space since 2014. The fact that they are here that long makes them trustworthy in the first place. They offer good security combined with excellent service.
Buy crypto & How it works
If you want to buy any altcoin with Bitcoin then their service could be something for you. They make it quite simple in 4 steps:
- Login after setting up an account. First, choose which assets you want to trade. For example, if you want to buy LTC with Bitcoin, you select Bitcoin as the deposit and LTC as the recipient.
- Now you can give the order type. Quick or Precise, for you to decide how exact your position is going to be.
- If you want to receive LTC, provide your LTC address and give your BTC address for a refund. Now you can start the transaction.
- Shapeshift will generate an address. In this last step you have to send your BTC to this address and after confirmation on the Blockchain, your LTC will be transferred to you.
If you are in a hurry and want to exchange altcoins for BTC quick, I think Shapeshift could offer you the kind of service you need. Also Shapeshift has partnered with Simplex and therefore it is also possible to buy Bitcoin with a credit card.
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