This is the fourteenth article in our 15 part series.
So you might be eyeing taking advantage of the crypto space and wondering, “how do I purchase tokens or coins?”
It’s a simple process, but also can be a bit of a tedious one depending on what country you’re in.
However, the process looks like this:
On Ramp => Exchange => Purchase Tokens => Transfer To What You Want To Invest In
Off Ramp => Send Token Back To Exchange/Protocol => Convert To Currency => Send To Bank or Card
There are some exceptions where you can use a debit or credit card connected to your exchange. (I’ll have a list of those in the next article)
However, let me give you a few exchanges you can use to purchase crypto and tell you how you can get the funds back out when you need them:
1. Coinbase – The largest crypto exchange in the U.S.
2. Binance – Another large exchange (not available in the USA)
3. Binance.us -An independent exchange associated with Binance (only available in USA)
There are others you can also use such as Moonpay, Kucoin, and more. However, there are restrictions for those in certain countries.
The tricky part is what you want to do with the coins after you purchase them. If you’re just looking to buy some BTC or ETH for long term holding, then there isn’t much else you need to do.
But if you’re looking to get funds into a DeFi project, then the process can be a bit more tedious. (which would require another lengthy email)
Now, once you have those tokens and you want to get funds back into your bank account, you could reverse the process or you could take out a loan on your crypto.
Using a platform like Nexo.com allows you to do this. One benefit of this is since you’re not exchanging that crypto back into fiat, you could possibly avoid capital gains tax.
Another benefit is that you don’t sell your crypto. So you still own it while you pay the loan back and the loan repayment is peanuts compared to most other loan terms.
The only thing you need to be cautious of is not borrowing too much against your crypto and getting liquidated. (I’d personally convert to USDC for this option).
While this can seem a little intimidating, it really isn’t. You only need to go through the process a couple of times to get the hang of it.
Just make sure if you decide to transfer funds somewhere else, do a small test first to make sure you’re using the right networks.
This will save you a ton of heartache and lost funds.
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