With anonymity being our highest regard, it’s only natural that we process payments using cryptocurrency. There’s many things to consider when buying your cryptocurrency of choice so let’s cover a few of the noteworthy things first. The two large things that should be considered are the purchase fees and the transaction fees. There’s also a transfer delay that’s important to be recognized.
So what are each of these?
A purchase fee, is a fee that’s included when you purchase cryptocurrency with cash. This is an added fee that crypto vendors add when selling their coins. This fee varies depending on where you buy and is notably higher on some websites than others. This is a fiat fee that’s added.
A transaction fee is a fee that’s used to pay for the transfer of a coin itself. This transaction fee varies depending on several factors such as type of coin, network congestion, and in some cases the quantity of coins. These fees are given before a transaction is enacted. A bitcoin transaction fee could be .0005 BTC for a transaction for instance.
Bitcoin itself has one of the largest transaction fees for most cryptocurrencies so it’s typically recommended to use another coin for a purchase, especially smaller purchases. In some instances a transaction fee could cost more than an actual purchase so it’s recommended to use other currencies over Bitcoin generally.
Transfer Delay is a delay that’s put in place to help prevent against any illegal fraud. Many websites like Coinbase have a delay in place so that stolen funds cannot be used to purchase cryptocurrencies and transferred away immediately. Since crypto transactions are irreversible, this is a necessary precaution though it can be a bit tedious.
Now that that’s covered. Let’s go over how and where to buy crypto.
The most frequent website people buy Crypto from is Coinbase. Coinbase can be used to buy, sell, and trade cryptocurrencies for fiat currency.
The first step for this is to create your Coinbase account.
After signing up, your next step is to verify yourself.
Please note you’re verifying your information for Coinbase, not for us at Anoneo. This is a necessary step to help protect your account and any funds that you purchase.
For this, you’ll need to add and confirm a phone number. This is an added layer of security for your account.
After you’ve confirmed your email and your phone number with Coinbase, you’ll need to enable 2FA or 2 Factor Authentication. This can be done by downloading the Google Authenticator app on your phone, following the steps, and enabling the additional layer of security on your Coinbase account. You will also be able to use 2FA by getting an SMS text message as your added layer of security instead.
After enabling all of your 2FA options comes the real KYC process.
Know Your Customer Verification
After enabling your 2FA it’s time to provide the KYC necessary for both tax purposes and fraud prevention. This is a requirement for users who will be selling their cryptocurrency so that they can properly report their profits on their taxes. The other reason behind this is to prevent against fraud.
In the beginning of cryptocurrencies existence, there was a large amount of the userbase who was using the currencies to transfer illegal funds, steal funds and purchase cryptocurrencies, and commit other nefarious acts. This KYC process is to help prevent against that buy requiring user identification to know who is buying currencies and to ensure it’s done with their own money.
For this process, you will need to provide an image of your driver’s license or other state mandated ID. This will sometimes require a new member to actually take a selfie while holding their ID to verify it’s actually them but this is pretty rare and is usually due to exterior factors. This is pretty much the equivalent of having your ID checked to buy alcohol.
After verifying your identity it’s time to begin adding your payment methods.
Up until recently Coinbase only accepted payments with wire transfers, and debit or credit cards. Recently however, Coinbase has begun accepting payments for cryptocurrency through Paypal accounts that have a bank account or debit card linked.
The bank account option has no additional fees on purchase and allows for a higher limit so that you can purchase more currency. Some banks do have an instant verification process where Coinbase will send two random charge amounts for under $2 each to your bank account. You can verify these charges and your transaction will be processed immediately after with these two charges being refunded. This allows for a quick purchase process.
Additionally, you can purchase with a debit card for another quick purchase method though there are additional fees.
From here you can purchase the coin you’d like to buy.
From here, you can navigate to the trade tab and begin looking for the coins you’d like to purchase.
You’ll be presented with a list of popular coins at their current prices and how much their price has changed over the last 24 hours.
You can sift through and pick the coin you’d like to purchase and enter the amount of USD (or other currency) you would like to spend and Coinbase will automatically calculate how much of that currency you will receive.
After you confirm your purchase, you’re done! You’re now the proud owner of your own fake internet money!
It’s worth noting that with Coinbase there is a week long transfer delay. After purchasing your currency you will only be given access to small amounts of your currency immediately. There’s no need to worry, you’ll still receive the same amount of coin as when you purchased after this week long wait period. If the price of the currency goes up, you will not receive less coin.
This week wait period is for the same reason as previously mentioned – to prevent any fraud. This week long wait period would give the owner of any stolen funds one week to flag the purchase as fraudulent so that nobody loses money in the situation.
Viola! You now own your cryptocurrency!
We understand that the slight fees that come with purchasing cryptocurrencies can be annoying. Because of this, we have all prices slashed by a significant amount to circumvent these fees!
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