When it comes to buying and selling bitcoin, there are a few different ways to do it, with each option having its pros and cons. In this blog post, Coin Cloud explores four different methods to buy and sell your bitcoin.
1. Peer to Peer
This is the most open and quick method of buying and selling bitcoin. Peer-to-peer (P2P) exchanges match bitcoin buyers with sellers. P2P exchanges are different from traditional online exchanges in that individuals are trading back and forth with one another. Sellers are able to set their own prices and terms for their bitcoin sale. Most P2P exchanges allow buyers to pay with PayPal, bank transfers, credit cards or cash. The downside to using these types of exchanges is the lack of due diligence done on both the buyer and seller side, making it easy to be scammed.
2. Online Exchanges
Online exchanges are probably the most popular method to buy and sell bitcoin. Giants like Coinbase or Gemini allow users to buy and sell bitcoin from their computer or mobile device. Users must first link their bank account and personal information in order to engage in transactions. Online exchanges are great because they are convenient — you don’t need to worry about getting cash or dealing with individual terms set forth like you would on a P2P exchange.
The downside to online exchanges is that they can be extremely time-consuming. When first signing up, it can take up to a week for online exchanges to approve your account. Also, when purchasing or selling your bitcoin, it can take several days for the coin or cash to arrive in your account. When it comes to their money, people don’t want and shouldn’t have to endure these long times.
3. Broker Method
There are a few bitcoin brokerages that exist. They operate similarly to a real estate brokerage. Companies like Genesis Trading will match buyers with sellers that have low fees. This is typically a very quick process, but brokers usually won’t work with buyers unless they’re going to be buying large sums of bitcoin over a certain period because it simply wouldn’t be worth their time.
4. Bitcoin ATMs
Bitcoin ATMs are fairly new (the first machine was placed in 2013) but it’s by far the best method to buy and sell bitcoin. Bitcoin ATMs operate similar to traditional ATMs — they allow users to buy and sell bitcoin using cash. A lot of new “bitcoin-ers” feel more comfortable using Bitcoin ATMs for their transaction because of the similar functionality to the ATMs that they already know.
One of the main benefits of using Bitcoin ATMs is users only need to share minimal personal information in order to engage in a transaction. This allows them to keep their transaction pseudo-anonymous — one of the key aspects of using cryptocurrencies in the first place. In addition, transactions are validated way quicker than online exchanges, allowing buyers and sellers to have their coin or cash in their account within minutes.
The only downside to Bitcoin ATMs is the higher transaction fees. But, these costs are easily justified by the convenience of using a Bitcoin ATM. Most Bitcoin ATM companies provide a live support team to help users throughout their entire process. This ensures that their purchasing experience is as smooth as possible. On online exchanges, it can be nearly impossible to finally get through their busy customer service line to talk to an operator. This can be frustrating, especially when dealing with new-ish technology like bitcoin.
What Is Coin Cloud?
Coin Cloud is a Bitcoin ATM company headquartered in Las Vegas, Nevada. With over 627 locations nationwide, Coin Cloud boasts one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Our network has helped more than 144,000 customers buy and sell cryptocurrency since opening our doors in 2014. To find your nearest Bitcoin ATM, please visit CoinCloudATM.com.