How to Buy Cryptocurrency with Your Local Currency: A Step-by-Step Guide

One should understand what cryptocurrency is and why purchasing it with your local fiat currency is a necessary step before proceeding with the cryptocurrency buying process. Cryptocurrency is a virtual or digital currency using the application of cryptography for protection and keeping it safe from being double-spent and faked. Cryptos such as Bitcoin (BTC) or Ethereum (ETH) are not centralized and operate on blockchain technology, which provides them with some degree of transparency, security, and autonomy from banking systems.

While purchasing crypto using US Dollars or Euros is prevalent in certain regions of the world, others prefer purchasing the digital tokens with local currency. Fortunately, most of the platforms support you in purchasing cryptocurrencies with your native country's currency—either the Indian Rupee (INR), Nigerian Naira (NGN), Brazilian Real (BRL), or even local money.

 

The initial step of buying cryptocurrency using your local currency involves the selection of an exchange referred to as a cryptocurrency exchange. An exchange is where one can exchange their local currency for crypto assets. The selection of an exchange is important because it might affect the fees, security, and convenience of making the purchase.

Popular Cryptocurrency Exchanges:

Binance: Essentially renowned for its extensive list of supported coins and fees that are low fees. Binance facilitates a comprehensive list of local currencies like USD, EUR, INR, etc.

Coinbase: Most likely the most intuitive exchange, Coinbase allows users to buy cryptocurrency using a variety of local currencies, and it is extremely easy to navigate as well.

Kraken: Another local currency-supported exchange, among other positives, such as futures trading and staking.

Gemini: Ideal for beginners and US residents, Gemini is a US-regulated exchange that trades in local currencies like USD.

Things to Consider When Choosing an Exchange:

Supported Currencies: Ensure the exchange supports your local currency.

Transaction Charges: Be aware of the charges for buying, selling, and transferring cryptocurrencies. There are sites with outrageous charges for certain methods of payment.

Payment Methods: Ensure that the exchange offers your favourite payment method, e.g., bank transfers, debit/credit cards, or even PayPal in some instances.

Security: Always go for exchanges that claim to have a superb security rating. Cold storage and 2FA are absolutely a requirement.

After choosing an exchange, the next process is to set up an account. This will only need some minimal personal information, which would be your name, email address, and password.

Account Setup Tips:

Strong Password: Attempt to use a strong and different password. Combining letters, numbers, and symbols is ideal.

Two-Factor Authentication (2FA): Always have 2FA enabled for extra security. This will prompt you to enter a code received by phone or email on each login.

Account Verification: Identification verification is required on most exchanges, particularly if you'll be depositing a significant amount of money or executing large trades. You might be prompted to submit identification or proof of address.

 

To be compliant with anti-money laundering (AML) and know-your-customer (KYC) laws, exchanges typically ask you to verify your identity. This keeps the site compliant with regional legislation and does not participate in criminal activities.

What You'll Have to Verify:

Government-issued ID (driver's license, national ID card, or passport).

Proof of residency, e.g., a utility bill or bank statement (typically within the last 3 months).

Validation may take anywhere from a couple of minutes to a few days based on the exchange policy. After you are verified, you can deposit money into your account and start purchasing cryptocurrency.

 

Your account is created and validated now, so you will need to fund it with the local fiat currency. Exchanges support several payment systems which each of which has its advantages and disadvantages.

Most Used Payment Methods:

Bank Transfer: Usually the most affordable with minimal fees. Bank transfers take 1-3 business days to clear, depending on where you live.

Credit/Debit Card: Quick, also allowing instant buying many times. You can pay more fees, though.

PayPal: Some exchanges let you pay for your account via PayPal, but this might incur additional fees or limits based on your region.

Mobile Payment Systems: You can fund your account via mobile payment apps such as Paytm, Alipay, or WeChat Pay in certain nations.

Currency Conversion Fees:

Some exchanges charge a currency exchange fee if you pay with a different currency than the default currency of the exchange. Ensure you check for any extra fees your bank would charge you for transferring your money from your local bank to the exchange.

 

With funds now loaded onto your account, you can now purchase cryptocurrency. Many exchanges also provide a simple interface for digital currency purchase.

Steps to Purchase Cryptocurrency:

Go to the "Buy" Section: Now that you are logged in, look for the "Buy" option for the virtual currency that you intend to buy. This can be either on the home page or under a specific tab such as "Markets."

Select the Cryptocurrency: Select the one you are looking to buy. The popular ones such as Bitcoin (BTC) or Ethereum (ETH) will typically be found on the home page.

Input the Amount: Determine how much you wish to purchase, either in cryptocurrency units (e.g., 0.5 BTC) or your domestic currency (e.g., 500 USD).

Choose Payment Method: Choose the funding source, either by bank transfer, credit card, or other means you've established.

Confirm and Execute the Transaction: Review the transaction details, including any fees, and then confirm the purchase. Once completed, the crypto will be credited to your account.

After purchasing your cryptocurrency, it’s essential to secure it. While exchanges provide a wallet to hold your crypto, this isn’t the safest option in the long run.

How to Secure Your Crypto:

Hardware Wallets: For maximum security, keep your crypto in a hardware wallet such as the Ledger Nano X or Trezor. The wallets store your private keys offline, meaning hackers will have a very slim chance of stealing your funds.

Software Wallets: Convenience is as simple as using a software wallet such as Exodus or Electrum. Just ensure that your private keys are backed up and you use good encryption.

 

Once you have kept your crypto safe, you can then start monitoring how it's doing. Different options of software and applications such as CoinMarketCap, Blockfolio, or the one that an exchange gives you on a mobile phone enable you to monitor the worth of your portfolio in real-time.

Reminders:

Diversify: While Bitcoin and Ethereum are popular, diversify your portfolio to minimize risk.

Stay Informed: Crypto markets are inherently volatile, so it is important to stay informed with market trends and news in order to oversee your investment.

Inadequate Research: Do research before purchasing a cryptocurrency. Don't invest in cryptocurrencies on spec and hype.

Ignoring Security Precautions: Always observe 2FA, and keep your assets within a hardware wallet.

Falling Prey to Deceits: Be careful of phishing deceits or counterfeit websites. Use original websites alone.

It is easy and convenient to buy cryptocurrency using your local currency from various exchanges. But safeguarding funds is as crucial as well. Oppi Wallet offers an easy, secure, and hassle-free means of managing your virtual currencies. With multi-currency support, robust security features like 2FA and biometric authentication, and smooth cross-platform compatibility, Crypto Wallet ensures that your investments are safe and at hand.

Whether you are a new or experienced crypto investor, Oppi Wallet is your go-to option for storing and protecting your investment when purchasing crypto using your local currency. Protect your investment today and sleep peacefully knowing that your crypto is safe in our hands.