What is the method of buying digital currency from exchanges? Everything you need to know

If you are a fan of Bitcoin and digital currencies, you must have experienced buying these currencies at least once. And you must also know that there are different ways to buy digital currency, some of which are easier and some of which are more complicated. In general, buying from exchanges is the most common and convenient way to buy digital currency.

Exchanges have different types and are generally divided into two categories: internal and external. Choosing each of these types has its own benefits and risks. In this article, by learning how to buy digital currency from an exchange, join us to check the methods and advantages and disadvantages of each.

An overview of the functioning of digital currency exchanges

Most of us think of digital currency exchanges as a place to buy and sell dollars, euros and foreign currencies. We must say that this idea is not correct.

Crypto exchanges are online platforms that either sell digital currencies themselves, or create a platform for both parties to trade.

Read more: What is a digital currency exchange and how to trade in it?

Exchanges are divided into domestic and foreign exchanges according to their location. Each of these categories has its own requirements for customers. For example, almost all domestic exchanges ask their customers for bank cards, identification and selfies for authentication. On the other hand, most foreign exchanges consider authentication necessary only when the withdrawal or transaction amount exceeds a certain limit.

Foreign exchanges and brokers allow customers to directly buy popular digital currencies such as Bitcoin and Ethereum with bank credit cards. Precisely for this reason, Iranian users cannot use them to buy.

Most of the Iranian users use domestic exchanges to buy digital currencies directly. These exchanges have less liquidity than their foreign counterparts and therefore limit the amount of orders.

Depending on what digital currency investors are looking to buy, the way of working will be different. Therefore, buying digital currency can generally be divided into two categories: buying Bitcoin (as well as Ethereum) and buying altcoins.

Buying bitcoin and ethereum digital currency

Due to international sanctions and increasingly strict conditions for the use of foreign platforms such as Local Bitcoins Previously, Iranian users widely used it to buy Bitcoin, direct purchase of well-known digital currencies from Iranian exchanges is the easiest way for people who want to invest.

Just search the terms “buy bitcoin” or “buy digital currency” to come across a large number of Iranian exchange websites.

To choose an internal exchange, you can use the digital currency stack to see the experience of other users. Users should note that because they provide sensitive information such as their identification information to the exchanges, which may be misused and scammed, they should trust the exchange in maintaining and maintaining this information and accept the risk.

After going through the process of registering in domestic exchanges, presenting documents and accepting them, users can register their order and send their digital currency to the wallet.

Buy altcoins

The main digital currency of domestic exchanges is usually well-known currencies such as Bitcoin or Ethereum. These exchanges most likely do not have a token that has not been released for more than a few months and you have identified it as a suitable purchase option.

Find an exchange

First, to find out which foreign exchanges support your desired digital currency, go to its special page by searching for the name of altcoin on the Aruzdigital site and select the “Exchanges” tab.

After opening the page, you will see the list of exchanges sorted by the volume of daily transactions. You can check exchanges from top to bottom. Of course, you should pay attention to points such as the credit of the exchange, its currency pairs, its authentication rules, and its treatment with Iranian users.

Many foreign exchanges require authentication and authentication of Iranian users is prohibited in them. Some others have banned the use of Iranian users; But there is no need for authentication. Some others are generally not prohibited for use by Iranian users.

Also, it is not bad to know that a large number of exchanges try to be higher in this list than other exchanges by falsely reporting the amount of daily transactions. Therefore, it is better to use the experience of other users and if the exchange is valid, use it.

Do not forget that due to international sanctions, if you use foreign exchanges, there is a risk of your account being blocked at any moment; Therefore, to use these exchanges, be sure to use a VPS. We also suggest not to keep your assets on foreign exchanges for a long time.

Attention to the available currency pairs

Another important point that you should pay attention to is the currency pairs that are available on the exchange for the altcoin you want. In normal mode and direct purchase, you can buy bitcoins by paying common currencies such as Rials and Dollars. In fact, you are trading Bitcoin against Rial, and the currency pair is Rial/Bitcoin (BTC/IRR).

But for most altcoins, it is not possible to buy directly with Rials, and you must choose a basic digital currency that has a currency pair with the desired altcoin. For example, in the case of XEM (XEM), foreign exchanges offer XEM/USDT, XEM/BTC and XEM/ETH currency pairs.

Buy basic digital currency

After you have determined which currency pair and from which exchange you want to make your purchase, you must buy your basic digital currency, which can be Bitcoin, Ethereum or Tether, from an Iranian exchange.

Of course, it is possible that you already have one of these currencies, in which case there is no need to purchase. In any case, you must deposit the base currency into your account at the foreign exchange.

Using VPS and creating an account in the exchange

After making sure that the exchange in question does not have a problem with Iranian users, or does not require authentication, you can create an account in the exchange using a VPS. Note that the users of the country whose IP you are using should not have any problem using that exchange. Also, try to register by email as much as possible.

Deposit the basic asset to your account in the exchange

Most foreign exchanges have the same structure. To deposit digital currency to them, there is usually a section called Deposit that you need to click on. This will give you an address to send the base currency to. Once the underlying asset has been transferred, all that remains is to convert it into the desired coin or token.

To learn about the types of orders in exchanges and how to register an order, you can read the article “Types of digital currency orders in exchanges”.

After buying the desired altcoin, the best thing to do is to remove it from the exchange and keep it in a safe and secure wallet. To find a safe wallet, you can take help from the “Comprehensive Guide to Digital Wallets” and “Comprehensive Tutorial on Finding Digital Currency Wallets” and use the “Wallets Page”.