Cryptocurrency started to gain mass acceptance and started chasing mass adoption thanks to exchanges. It is almost a waste of time investing in a project that does not have a plan to list on an exchange and with that said, there are a lot of cryptocurrencies exchanges currently like Coinbase which allows users to trade fiat for coins as well as crypto for crypto, others includes; CEX, Crypto.com, Bitshares Decentralized Exchange, Kraken, Changelly, Poloniex, Bittrex, and so on.
Exchanges are of two types, the once that allow the exchange of fiat to crypto coins and the ones that allow the exchange of crypto coin to crypto coin.
Fiat to Crypto coin Exchanges
This exchanges are allows the conversion of fiat to cryptocurrencies like the USD to BTC, GBP to ETH, YUAN to BTC, Yen to LTC and Vice Versa. The exchanges are in some cases escrows as they help bring P2P users who want to trade fiat for cryptocurrency as well as cryptocurrency to fiat. Exchanges like Coinbase, LocalBitcoin, Remitano, Luno etc. are examples of this exchanges.
Cryptocurrency to Cryptocurrency Exchanges
This makes up over 80% of the entire exchanges available in the cryptocurrency world. Every newbie in cryptocurrency is first introduced to this type of exchanges and more importantly, this exchanges is what gives room for the exchange of Bitcoin to other Altcoins like BTC to LTC, BTC to HIVE, BTC to HBD, BTC to TRON, USDT to EOS, and so on. Example of this exchanges are Kraken, Poloniex, Binance, Bittrex, Huobi, Probit, Okex, Etherdelta, Forkdelta, Uniswap, Bithumb, Kucoin, HitBTC and so on.
In this post, I will be writing about my best cryptocurrency exchange that support Fiat to Crypto exchange
LOCALBITCOINS
Founded in 2012 by Jeremias Kangas, Localbitcoins has its headquarters in Finland and has since been leading in the fiat to cryptocurrency P2P exchange. I got to know about Localbitcoins exchange in 2016 and since then, I must commend that the exchange is awesome. Localbitcoins allows the exchanges of many local currencies into cryptocurrencies as well as it supports several forms of payment like Bank transfer Wire, Cash Deposit, Moneybookers/Skrill, Paypal, Web Money, Transferwise and so on.
How to Get Started
In other to start using Localbitcoins, users have to sign up in other to access the functions of the exchange but due to security and anti-money laundry (AML) laws, KYC is required by each users. The first step of KYC is to confirm citizenship submitting any government approved ID like the Passport, Driver’s License, Voter’s Card, and so on. After this, further KYC is required to confirm Address of the User where the user submits a copy of the Utility bill or Bank Statement. After which the Final KYC for source of income is required where a proof showing source of income is submitted.
How to Trade on localbitcoins
Localbitcoins is a P2P exchange which allows the use of escrow as middleman between the user who wants to trade fiat and the user who is willing to trade cryptocurrency. Users create advertisement showing the price they are willing to buy or Sell their cryptocurrency in the local currency as well as the method of payment they will be accepting for their transaction.
Users then pick the preferred method and price among the list of advertisement and users send both cash and coin to one another, and localbitcoins serves as an escrow to hold coins for the party sending the coin while the other party sends fiat. When the fiat has been successfully sent and prove has been shown, and the other party confirms payment, then the token will be released on the escrow.
Conclusion
The only way to trade fiat to cryptocurrency is via P2P (Peer-to-Peer) and Fiat to Cryptocurrency exchanges has made this possible. Localbitcoins is an exchange that has allowed a lot of users. The transaction fees are low and the transaction is very fast as the platform has a rating scheme where buyers and sellers rate each other based on speed. You can also give Localbitcoins a try by going to locabitcoins.com.
Thank You
**All images are screenshots from localbitcoins.com.