Buying bitcoins for the first time can seem a little intimidating with all the jargon, financial concepts and slangs to understand. Luckily for new users now, the community has grown so much which means that there are tons of resources for newbies to use.
A big issue that also intimidates a lot of people is the concept of bitcoin’s price volatility. This refers to the extreme rates at which bitcoin’s price goes up and down. This intimidates a lot of people because the volatility makes it seem like a riskier investment.
Although that is somewhat true, despite whatever may be the value of bitcoin, you can always come up with ideas to work around to the volatility. This workaround can be summed up in 2 words: peer-to-peer marketplaces.
Peer-to-peer bitcoin marketplaces
As compared to traditional bitcoin exchanges, peer-to-peer bitcoin marketplaces add a personalised touch to the trading experience. Traditional bitcoin exchanges act as a middleman that help buyers and sellers conduct their trade. Although that in a sense, this may seem more suitable for newbies, the help that you get comes at a price. Peer-to-peer marketplaces are cheaper and more efficient because buyers and sellers directly interact with one another, making trading more efficient and cutting the need for a middleman.
Volatility on peer-to-peer marketplaces is irrelevant because bitcoin’s price is kind of irrelevant. People on peer-to-peer marketplaces are constantly trading—with the form of money changing as each trade completes. This is due to the hundreds of payment methods that are available on peer-to-peer marketplaces. Paxful, for example, is one of the biggest peer-to-peer marketplaces in the world and they have over 350 payment methods to choose from.
On Paxful, there are barely any fees to pay. In fact, people who are buying bitcoin don’t have to pay any fees at all. It’s the sellers that have to pay a small escrow fee. If you want to start buying bitcoins on Paxful, it simple and easy—and it can be condensed into 3 steps:
Choose an offer
The first step to buying bitcoin on Paxful is to carefully select an offer on the list. What kind of offers you see on this list will depend on all the preferences you set beforehand. These preferences include your preferred currency, payment method, or even location.
When selecting an offer, make sure that you take these factors into consideration:
The profit percentage of the vendor – On the offer list, you can see this as how much you’ll be getting on the dollar. The more bitcoins you get per dollar, the better. Use Paxful’s bitcoin calculator as a reference when computing how much bitcoin you can get with your fiat money.
Offer terms – This is a short summary explaining what the vendor will need from you when the trade begins. If you are not able to comply with the terms, then don’t click on the offer.
Vendor reliability – Check the feedback score of the vendor and his/her trade history to see if your vendor is reliable.
Vendor availability – Check if your potential trade partner is available and ready for trade otherwise you’ll end up with a trade that expires.
Start the trade:
Once you’ve selected the offer, a more detailed set of instructions should appear—be sure to follow these to the dot or else it could be taken against you. Submit all the requirements that the vendor needs and patiently wait for the vendor to verify your payment. If you have any questions, there is a live chat feature that you can use to communicate with the vendor.
Receive bitcoins and leave feedback:
After the vendor finished verifying your payment, he/she should then release the bitcoins from escrow and you will have completed the trade! Leave proper feedback for your trade partner and be on your way!
Do your research!
The best investors are the ones that do their research. Watch YouTube videos, read blogs, and keep up with the latest cryptocurrency news to get on top. Educating yourself is the best way to minimize all possible risks when investing in a cryptocurrency.
Just think of it this way: the more you know, the less likely it is for you to lose your money.