There was a time when the crypto market was young and all that stood in the way of users getting some cryptocurrencies was launching a miner on their home computers using a basic CPU. All users needed was a wallet in those simple times, a place to store the seemingly worthless coins that were perceived as nothing more than just a hobby for stretching the boundaries of cryptographic science and exploring the possibilities of the blockchain.
My, my, how times have changed. Since then, the crypto market has evolved into a gigantic ecosystem, an industry of its own with thousands of applications, millions of users, dozens of blockchain, and billions of dollars in market capitalization. The vast and sprawling decentralized space is gradually encroaching into ever new sectors of the global economy, onboarding new industries and opportunities for the main institutionals and retail investors seeking to profit from the possibility of contributing to the development of the crypto frontier.
The modern crypto market represents a sprawling space, where every single fragmented blockchain and ecosystem competes for the influx of new users and their funds. Such a state of affairs is only fueled by the gradual onset of the realization that nothing will be possible without the inclusion of convenient and accessible fiat on-ramps and gateways for further funding the development of the industry. It would be foolish to think that cryptocurrencies are self-sustaining and bear any manner of intrinsic value beyond their limited applications within the scopes of their blockchains and respective applications. Truth be told, cryptocurrencies can rather simply do away with prices and exchange rates, since the monetization factor has been artificially added to the blockchain in order to make it a commercial venture.
The technological underpinning of blockchain foresees only the deployment of a distributed ledger used for hashing transaction records as an information database. Such a framework does not need the inclusion of a monetary factor, since blockchain systems can be easily included within corporate settings. It would be outright dumb to think that the employees of a corporation would need to buy internal tokens to access company records to do their jobs. The same concept of free and unrestricted exchange of data can be applied to the blockchain as a whole, but that would make it unprofitable and unattractive for the vast majority of users.
However, the mere fact that the artificial inclusion of monetary value has been overlaid on top of the blockchain means that there must be a layer of value in which the coins and tokens can have a price. The sad fact is that the only choice in this regard is the fiat source of funds. As such, it was necessary from the get go to have fiat channels connected to the blockchain so users could buy their tokens and coins in digital format for hard cash.
The presence of hard cash as collateral inside the blockchain market is what gives it its USD equivalent market capitalization. Should the fiat channels and debit card top up gateways be disconnected, the entire system will instantly lose its peg and go bankrupt. As such, the need for allowing users to connect debit card payments is vital, since most users are unwilling to go through labyrinths of instructions to purchase their first ever cryptocurrencies. Given the inherent laziness of average online denizens, all decentralized application providers and developers, as well as services offering merchant amenities for cryptocurrency payment acceptance, have been doing their utmost to make the crypto purchase process as simple as a one-click affair.
There are many ways open to users who want to partake in the cryptocurrency market. The basic way is through the purchase of cryptocurrencies for other coins and tokens. This method is straightforward, as it only requires users to have a wallet address with a certain balance of cryptocurrencies that is then connected to an exchange and a one-click procedure results in the purchase of the selected amount of coins or tokens. However, this method is reserved for those who already have cryptocurrencies, which were not purchased using fiat, but were rather received from original mining, as airdrops, or transferred from other users.
All other users willing to take part in the cryptocurrency market have to use a debit card. A credit card is also acceptable. In fact, users can also buy cryptocurrency with a prepaid card. To use credit cards for the purchase of cryptocurrencies, users must first connect their card to an exchange. The process of selecting an exchange is a long and tedious one that involves a lot of research and requires specific knowledge of the cryptocurrency market and the factors that determine prices and exchange rates.
Once an exchange has been selected, users can connect their debit cards, or any other card after they undergo the Know Your Customer and Anti-Money Laundering procedures, which are standard for all exchanges that operate in the legal field. In order to connect their cards, users must provide the banking details of the selected card and their personal identification credentials. This is standard based on international financial requirements and legal frameworks that all exchanges must abide by.
In the case of prepaid cards, the process is exactly the same. A prepaid card is just a card that has a limited balance on it that is purchased along with the card. In essence, they are debit cards that are used for the convenience of the plastic base.
Once a card has been connected to the exchange, users can start purchasing their cryptocurrencies. The process is exactly the same for virtually all exchanges that are centralized. Users are required to go to the “Purchase” tab and select the cryptocurrency they wish to buy along with the amount. Once that is done, users need to select the withdrawal address, which can be a bank account or a digital wallet. Both means are available on virtually all exchanges.
The difference is with decentralized exchanges that do not require users to verify their identities. Instead, users need to log in using their digital wallet details. These exchanges pose certain threats in terms of legality, but users who risk connecting their debit cards to such platforms are made aware that the security measures applied are usually higher than any hackers can tackle.
Users are free to buy cryptocurrencies using a credit card, if that is their preferred method. Debit card purchases are also possible. Whatever the method, the necessary application can be found to cater to all user requirements and suit any tastes. Such versatility and inclusiveness is what makes the cryptocurrency market such a convenient environment. Add to that the possibility of using prepaid cards or any other digital wallet gateway like PayPal and we have the makings of an industry that is ready to compete with the global heavyweights in finance.
However, users are always advised to exercise caution when dealing with cryptocurrencies not only due to their inherent volatility, but also because of the abundance of scams on the market. There are dozens of fraudulent websites on the market that are eager to siphon users’ funds while pretending to be legitimate platforms.