Spoiler Alert: It’s the ZERO FEE option with Pillar Wallet & Ramp Network (promotion has ended)
What’s The Best Way To Purchase Cryptos?
Most Earth walkers are used to traditional finance and therefore view cryptos from a similar perspective in the beginning. “I know xx bank has a good reputation and needs to uphold it to remain in business, so I can trust them to take care of my money.”
Nowadays with trustless protocols, smart contracts and decentralized systems, that mentality is being flipped on its head and people are having to re-evaluate their programming.
Nevertheless, most beginners in cryptos start at the same place when it comes to buying tokens. That is on centralized exchanges (not dis-similar to a tradFi bank) This is not necessarily the best or simplest way though. In this article we’ll go through some routes to purchasing cryptos with fiat currency and also let you know how to do it for free.
Centralized Exchanges (CEX)
CEXs offer services where a user can register and create an account or wallet on their platforms, often requiring KYC / AML identity verification, and buy or sell digital currencies using fiat currency with bank cards or bank transfers.
These companies, offer ease of use for the custodianship of your funds trade-off, at least until you move your funds off exchange (which IMO is recommended).
This is a web2 approach requiring you to hand over your private data and letting someone else dictate how you can interact with cryptos.
Examples are: Binance, Crypto.com & FTX
Decentralized Exchanges (DEX)
DEXs work differently and embrace privacy and web3 technology. These exchanges are funded by community liquidity providers who do so to earn rewards on their provided liquidity.
These exchanges allow users to connect their own crypto wallets to their decentralized apps (dApps) and exchange one digital currency for another, that the DEX has liquidity for. Projects will also often add liquidity to these exchanges to get listed and make it easier for their community to obtain their tokens.
Generally they do not offer fiat on ramps so many non-custodial wallets offer fiat on ramps.
Once the user has purchased something like ETH or stablecoins for example, these can be swapped on DEXs.
Some of the more well known of these are: Uniswap, dYdX, PancakeSwap & SushiSwap.
In-Wallet Purchases
It is becoming more and more popular for non-custodial DeFi wallets to integrate DEXs, aggregators and fiat onramp solutions into their wallets making it safer and that much easier to purchase cryptos for fiat currencies.
One of the first wallets to offer this was Pillar Multichain DeFi Wallet, which has not only integrated fiat on ramping with Ramp.Network & Wert.io but also offers in app browsing and interaction with various DEXs all from the user’s own wallet.
On ramping is a simple process of opening the wallet and clicking the Add Cash button which allows the user to use a credit card or effect a bank transfer in order for a chosen cryptocurrency or token to be added directly into their wallet. An additional advantage of this is users can choose a different blockchain for the funds to be added to, thereby bypassing the high Ethereum transaction fees. Chains like Polygon, Gnosis and many others offer cheaper and faster transaction processing.
The Best Way To Buy Cryptos is with Zero Fees
Pillar Wallet x Ramp Network are currently running a Buy Cryptos with Zero Fees promotion, meaning Pillar Wallet users can purchase many of the most useful tokens on varying chains without paying any fees. (promotion ended 6th May 2022. Lookout for other Pillar Promotions coming soon)
> Download / open Pillar Wallet
> Tap ‘Add Cash’
> Select ‘non-US resident’ (this is safe for US citizens too as Ramp offers its service to over 38 US states)
> Enter the amount you wish to purchase and click ‘Sidechains’.
> Select your country and desired cryptocurrency and proceed with the payment.
We hope this article has made the options clearer when it comes to apeing in to cryptos. Join the Pillar Wallet community to access more useful articles and become a Pillar DAO member to guide the future of the project.
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