When buying there are different platforms and providers. The big difference is in the commissions that they are going to charge us.
You should consider the following points:
1. Are they authorized in your country?
2. What is the payment method we will use?
Here are some of the popular providers for the current scene:
- Coinbase (Gateway, Exchanger) is an easy platform for trading, and you will be required to present an official ID to purchase. The registration procedure may take some time due to corporate regulations. It has acceptable commissions (1.5% to 2.5% approx.).
- Kraken (Exchanger) is the platform with one of the lowest commissions (from approx. 0% to 2%). It works as a trading platform and offers extensive information. It is also very useful for beginners.
- ATM or Human Teller Machine are usually the ones with the highest commissions (2.5% to 15%). They are undoubtedly the easiest system to operate.
- Coinmama (Exchanger) is a very intuitive platform and its commissions range between 2% and 7%. Their prices will depend on the volume of purchase. It offers many payment options, and at the same time stands out for its speed of verification. On average user verification takes 30 minutes.
commissions
Basically there are two types of commission: general and specific; may vary depending on the chosen platform.
The general commission is the one charged by everyone, but it varies depending on the platform. This is usually a buy or sell commission of around 1.5% and up.
Additional fees may be added depending on geographic location.
Types of suppliers where we could buy:
• Brokers (” intermediaries”) (Etoro)
• Exchangers (“exchange house”) (Coinmama)
• Gateway (“payment gateway”) (Coinbase)
• Manual or automatic teller
• Exchange from person to person (Localbitcoin)
Below we will explain how these providers operate.
What are the brokers?
The Broker is mediating between the buyer and the seller (Trader).
Clients deposit their money into the broker’s account. After doing this, they can use all kinds of products provided by the broker.
Brokers trade client funds through a network of dealers called an over the counter or OTC market.
The network allows brokers to connect buyers and sellers of large pools of cryptocurrencies, which are for sale. Brokers also allow you to trade assets (like stocks etc.) as well as cryptocurrency or regular money.
With this function you could deposit bitcoins or exchange them for different cryptocurrencies like Ethereum or Ripple.
Examples of cryptocurrency brokers are eToro, Pulse500, and Gemini.
What are the Exchanges?
A cryptocurrency exchange is like the stock market where buyers and sellers of cryptocurrency and fiat money meet.
While some people simply trade fiat currency like EURO for Bitcoin, others trade one cryptocurrency for another.
The exchange acts as an intermediary and they charge a fee for their service.
Examples of virtual currency exchanges include Kraken, Binance, and Bitfinex.
What is a Gateway?
A Gateway or cryptocurrency payment gateway is a platform that allows companies or individuals to accept payments in cryptocurrencies, as well as buy virtual currencies with credit and debit cards.
During the cryptocurrency boom of 2017, Microsoft, Shopify, and Subway began accepting cryptocurrency. Since September 2021, El Salvador has adopted Bitcoin as legal tender to be used in any transaction.
Examples of cryptocurrency gateways are Coinbase, Bitstamp, and Bit2Me.