How to Buy Crypto Outside a CEX

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Are your crypto assets safe with centralized cryptocurrency exchanges (CEXs)? That question shook investors when FTX collapsed, taking billions of dollars down the drain as it fell. The embattled company may have recovered $7.3 billion in assets (customer funds), but the seed of mistrust has already been sown.

FTX may be isolated among many centralized cryptocurrency exchanges, but it has proven how exposed customers are. You may wonder how to get your crypto assets without using CEXs. We know their simplicity, hence the need for something simple but with added security.

With innovations like Amy, an AI companion in the crypto space, you can be sure of a simple and more secure method to buy assets. We’ll take you through the basics to get started, even if you are a beginner. So, here’s our take on how to buy crypto without using a centralized cryptocurrency exchange:

Get a Self-Custody Wallet

You’d probably want a safe place to store your mega prize if you won a slots jackpot in crypto gaming. A self-custody wallet provides quick and secure storage under your control – this way, you can deposit and withdraw your funds on digital entertainment platforms quickly, anonymously, and securely. It gives you control over your assets and is less susceptible to freezes than a centralized cryptocurrency exchange. The reason is that a CEX crash would freeze your assets, and you may not be able to recover them.

This approach places the bulk of the crypto asset’s security on your shoulders. In addition, it is essential for storage when you purchase coins using the methods we’ll explore below.

Self-custody wallets are of two types:

• Software wallet
• Hardware wallet

Keep the following in mind:

• Software wallets are downloadable as applications or used as web wallets. They work on mobile devices, Macs, and PCs.
• Hardware wallets look like thumb drives or hard drives. They work outside of your devices, and you must plug them into your PC or Mac to access their contents.

Keep your password and seed phrases safe. Securing that information lies solely on your shoulders, not the wallet provider’s.

Ways to Buy Bitcoin Without CEXs

Armed with your crypto wallet, you can use our recommended ways to safely purchase Bitcoin and other coins. Some may require a learning curve, but nothing you can’t handle.

With that in mind, here are the ways to buy Bitcoin and other coins without using a CEX:

Through a Decentralized Exchange

A decentralized cryptocurrency exchange (DEX) is similar to a CEX. However, it differs in its governance structure.

Users control a decentralized exchange, while a single company controls a CEX. You retain control of your wallet and coins while trading on a DEX, unlike on a CEX. Nevertheless, there is a caveat when you use a DEX.

Decentralized exchanges often have governing tokens. That means users must own these tokens to access and use the trading services offered on the platform.

You cannot request a purchase with fiat currency. Hence, this approach is best if you already own cryptocurrencies.

Through Peer-to-Peer Exchanges

This platform brings things to the user level. It provides an enabling environment for you to transact with someone else. In addition, it’ll offer currency pairs to make transactions flexible and versatile.

The trading pairs can be cryptocurrency to cryptocurrency or fiat to cryptocurrency. Hence, it is up to you to pick a peer-to-peer exchange that supports the fiat or crypto you want to use.

This approach does not require having coins before purchasing Bitcoin. You can use any fiat currency, provided the platform supports them.

With a projected growth rate of 27.8% in the market worth of crypto exchanges, many believe peer-to-peer is the future. It provides enough trading flexibility while staying outside the regular crackdowns on CEXs.

Through Bitcoin ATM

Bitcoin automated teller machines (ATMs) first appeared in 2013. They work similarly to fiat ATMs, where you can deposit or withdraw cash. The process is easy and requires little to no expertise.

Some Bitcoin ATMs support debit card transactions. Also, you can insert physical cash to purchase Bitcoin and other supported coins. Here are the steps to use a Bitcoin ATM:

• Choose “Buy Coins” on the user interface.
• Select the price range that includes your intended amount.
• Enter your phone number to receive the access code.
• Create a secret pin.
• Select Bitcoin.
• Open your mobile wallet QR code.
• Move your phone near the ATM scanner for scanning.
• Insert the cash you want to buy it with. You can also use your debit card at this stage.
• Receive the paper receipt.

A Bitcoin ATM provides an easy way to purchase bitcoins and other supported coins. However, you must have a digital wallet to use it.

Final Thoughts

You don’t need a centralized cryptocurrency exchange to purchase Bitcoin or other coins. You can do that with a decentralized platform, a peer-to-peer exchange, or a Bitcoin ATM.

DEXs often allow purchases of tokens but seldom allow fiat currency. Hence, you can use a peer-to-peer platform or a Bitcoin ATM to make purchases.

*This article was paid for Cryptonomist did not write the article or test the platform.

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