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02. Collect crypto

Buy Cryptocurrency

If you don’t want to learn mining, skip all of the tech jargon and just use the money you have to buy crypto. Modern exchanges make these transactions relatively simple. If your chosen exchange supports a coin, you can get your hands on it.

There are 2 kinds of exchanges — the centralized exchange (CEX) and the decentralized exchange (DEX).

  • CEX: The centralized exchange is an exchange that takes responsibility for being the middleman between buyers and sellers of crypto. Because a CEX is a definitive entity, it is easier to regulate. Governments have used this characteristic to hold legal fiat-crypto transactions hostage to a degree. If you want to easily buy and sell BTC using U.S. dollars, you will likely need a CEX in the middle.
  • DEX: The decentralized exchange does not take responsibility for verifying the transactions on its platform. They are also known as peer-to-peer exchanges. The DEX simply provides a place to buy and sell. If your crypto seller finds a way to run off with your money, there is no 3rd party to appeal to. The advantage of a DEX is anonymity — you do not have to give up personal information in order to transact.

The largest and most trusted crypto exchanges in the world, including Bitmax, Binance, OKEx and Coinmama are all CEXs. Buying crypto on a centralized platform is usually easier because you can use traditional forms of payment like credit cards, debit cards and bank transfers. Exchanges like Coinmama also offer customer service and instant verification.

Decentralized exchanges are still the black sheep of the field, relying on more esoteric technologies like atomic swaps and smart contracts. The idea of a DEX corresponds more closely with the original idea of what crypto was created for — anonymity. Many DEXs actively avoid cooperating with government regulation. As a result, you may face slower transaction times and fewer transaction forms than with a CEX. In some cases, you may negotiate terms with your seller very directly, choosing to meet physically or exchange currency directly between wallets.

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