How to convert electronic money to cryptocurrency?

How to buy bitcoins with Neteller and other electronic money?

Nowadays bitcoin is known for its sustainable growth (bitcoin/USD rate has increased by four times during last half of the year) and it is still gaining more and more trust of major investors. So, one of the most popular German-speaking financial news portal - finanzen.net has put it together with the most important reserve currencies in the world; the experts have stated that bitcoin is as important as US dollar, yuan, GB pound - and that means something. We expect 2017 to be “the year of bitcoin”. That’s why a lot of institutional and retail investors are in a rush to buy this amazing cryptocurrency till it becomes even more expensive. 

 There are lots of different methods to buy bitcoins for electronic money. But if you are going to acquire bitcoins for the first time, you should use the simplest and the most convenient of them - like exchange Neteller USD to bitcoin, for example.

Here is the list of these methods:

1. Deposit funds from eWallet to your account. After you’ve deposited some funds to your account you can buy cryptocurrencies for the money on your balance. This procedure can be much easier if you perform it on EXMO exchange platform, because here you can buy through “Wallet” section whereas on other exchange platforms you will have to spend time in order to understand how buy orders work.

2. You can also (but it would be more difficult) find a proper internet-exchanger and buy bitcoins there. To choose the best one you can either use the list of exchangers recommended by reliable exchange platform or select them via special monitoring services. These platforms compare online exchangers by revealing their rates and allowing users to rate the exchange service. If you go for monitoring services the list would be longer, but they don’t select partners as carefully, as exchange platforms do. 

Using exchangers is pretty risky for the beginners, because the process is complicated and has a range of disadvantages that we’ll review below. Moreover, you will most likely not be able to buy WebMoney for bitcoins due to limitations imposed by the system. 

There are other methods to buy bitcoin, but they are less convenient and reliable. Let’s go for a detailed review of the best ways to buy bitcoins with Neteller and other digital currencies. 

How to buy bitcoins on the exchange platform?

In order to buy cryptocurrency you should deposit funds to your account on the exchange platform, but prior to that you should choose an exchange and register on it. Certainly, you should not register on the exchanges which are completely new, especially if their rates are significantly lower, than the ones of more “experienced” exchange platforms. The possibility to “bid farewell” to your assets and give them to the fraudsters is quite high in this case. It’s better to choose 2-3 year old exchange with a solid positive reputation, convenient interface and highly qualified team. EXMO exchange platform, founded in 2014, meets all these requirements.

There are some exchange platforms (including EXMO) where simple anonymous registration is enough to deposit, trade and withdraw your funds. During registration on other cryptocurrency exchanges you should provide your passport data and pass the verification, for significant trading. Third type of exchanges makes it impossible to perform any transaction without full prior registration (that supposes sending scanned documents to them). Of course, people, concerned about their Internet anonymity would hardly accept such rigid rules, therefore, they are looking for the alternatives.

After registration on an exchange platform you will be able to overview different deposit options on the exchange platform. EXMO exchange users can deposit to a convenient Neteller payment system, that allows to easily exchange Neteller USD or EUR to Bitcoin by depositing money to your account; besides, it’s possible to deposit funds to EXMO account using FasaPay, Epay, and Paxum. In both cases all you need is to login into the right wallet - and complete the transaction in few clicks; you can buy bitcoin for fiat money on EXMO in the same way.

It is not easy to find the electronic money system that fits all your needs. There are numerous electronic money platforms and the most suitable for you might not always be available. If you want to buy bitcoins on the exchange platform but do not see the most suitable wallets among others, do some research on how you can buy codes of your preferable exchange platform from partner-exchanger (more info below) or consider buying electronic money for deposit (that is even more difficult). Usually, while depositing from e-wallet, the system redirects you to the relevant payment system website (it would be more convenient if you pass the authentication on this website beforehand), where the payment order on the chosen amount is already created for you. After this you will be able to buy any available cryptocurrency from other traders on the exchange platform. 

Please note that for one-time bitcoin purchase of more than 2-5 thousand of USD (or its equivalent) you'll need to check whether bitcoins are available at the upper part of so called “order book” (the list of bid orders), in other words, make sure, that the market can offer you the necessary amount of cryptocurrency at a reasonable price. If you think the situation has changed - make the purchase in stages, monitoring the price (it’s more profitable to buy using bid orders at the top of the order book, but not from the wallet). Otherwise you risk to overpay. 

The above rule is even more relevant while buying other cryptocurrencies, so called, “altcoins” using US dollars or preliminary bought bitcoins. That is because their reasonably priced stock may be even more limited, than bitcoin one.

According to PayPal any exchange will probably freeze the account for 1 to 3 days. It’s an unpleasant but standard precautionary measure aimed at securing your wallet in case it gets hacked. After you’ve bought the bitcoins you can store them on your account or transfer them to your bitcoin-wallet. Pay attention, that the major part of bitcoins bought on EXMO platform are always kept in so called “cold” wallets, that are inaccessible to hackers. Rumors about bitcoin thefts from some less reliable exchanges may be true, because they didn’t use “cold” storage of users’ assets.

It’s pretty easy to sell bitcoins for electronic money and if you want to withdraw your funds in traditional currencies, you will see that the range of electronic money available for withdrawal is even wider than the ones available for deposit.

How to buy bitcoins in an exchanger?

If you would like to buy bitcoins for electronic money in an exchanger, you can rely on the one chosen by your exchange platform and which is worth to be trusted. 

Here, we would like to mention arbitrcoin.com - EXMO exchange partner which has been operating for more than a year. Not only you can buy bitcoins in this exchanger, but also exchange Okpay and Perfect Money for Exmo Codes. This information would be useful if you decide to deposit EXMO account with one of the currencies stated above, but this currency would be unavailable. As a result of the exchange you will get the deposited amount in EX-CODE (there are two types of codes - USD and EUR) these codes can be used to deposit the relevant account on EXMO exchange with 0% commission.

When buying bitcoins with an exchanger there is always a delay before you get them: it can take from 5 till 20 minutes (if you are lucky) or an hour or more. It depends on the network overload and the exchanger commission added to bitcoin price. This can be quite a nerve-wrecking experience. Unlike exchanger transactions, bitcoins bought on the exchange platform are immediately deposited to your account. 

Exchange rate of some fiat currencies to bitcoin is not very attractive even in the best exchangers. In order to get more profit, you should calculate whether you get bigger amount of cryptocurrency if you deposit your digital funds to one or another exchange platform, and buy bitcoins there. If you are buying altcoins through the exchanger - the rates could be even less favourable in comparison with the ones on the exchange platform.

Another issue with exchangers is that most of them tend to set high minimum limit for bitcoin purchase; for example, according to their rules you are not allowed to buy less than 0.005 or less than 0.10 bitcoin. In contrast, the minimum bitcoin amount you can buy on EXMO is just 0.001 bitcoin, in certain circumstances it is even less.

Even more serious complication will arise while buying bitcoins for WebMoney - this payment system strongly disapproves such operations and exchangers do not perform them at all. If exchanging WebMoney for bitcoins is the only option for you, first of all you will have to exchange your digital currency to one that is available to deposit on the exchange.

There are many ways to buy bitcoins for electronic money, but not all of them have the same efficiency for those who decided to take advantage of this perspective financial instrument. Hope that these recommendations will help you to find the best option for investing in bitcoin!

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