What Are The Different Fiat or Payment Channels Available?
Over the last 12 years, cryptocurrencies have gotten a lot of attention on a global scale. Though these digital currencies have yet to reach mass adoption, there is enough evidence pointing to the fact that cryptocurrencies are here to stay. So, if you want to learn more about how cryptocurrencies work, this guide is for you.
What is a Fiat Gateway?
A fiat gateway allows users to buy Bitcoin and other cryptocurrencies using fiat currencies on Binance. To better understand the concept of a fiat gateway, think about a coin machine in an arcade. To get arcade tokens you can use to redeem prizes, you first need to deposit fiat currency (or conventional money) into the machine in order to play the aforementioned games. These games then pay out in arcade tokens. A fiat gateway essentially serves the same purpose, allowing users to trade their fiat currency for crypto, which gives them the opportunity to participate in the crypto ecosystem without needing a traditional bank account.
Simply put, fiat gateways serve as entrances to the cryptocurrency world, the step at which you can deposit fiat into a cryptocurrency app or exchange.
However, in countries where we do not offer select crypto-to-fiat exchange pairs on our main platform, users can turn to stablecoins instead. With stablecoins, you can exchange US Dollars or other supported fiat currencies into tokens listed on Binance.
What is a Stablecoin?
A stablecoin is a type of cryptocurrency that is pegged on a 1:1 basis to another asset. These stablecoins are pegged to US Dollars, precious stones and other more conventional assets. In some cases, stablecoins may be pegged to a cryptocurrency or to multiple assets simultaneously. Generally speaking, stablecoins are pegged to assets that exhibit lower levels of volatility (hence the name). For example, when a stablecoin is pegged 1:1 to the US Dollar, each coin will be sold for approximately $1. Binance currently lists four US dollar-linked stablecoins to facilitate this process.
These stablecoins, listed in alphabetical order of their ticker symbols, are:
1. BUSD/USD token
2. TUSD/USD token
3. USDC/USD token
How to Buy Cryptocurrencies and Stablecoins
Cryptocurrencies and stablecoins can be purchased using traditional mediums of exchange like every other asset. However, you will need a digital wallet before you can buy, sell or trade cryptocurrencies. Just as you keep cash in a physical wallet, you can store your cryptocurrencies in digital wallets until you need to use them.
Different Fiat Gateways and Channels Available on Binance
1. Credit and Debit cards
One of the easiest ways to buy Bitcoin is to link a debit card or credit card. Through this method, you can buy Bitcoin for a minimum of approximately $15. This minimum amount varies depending on the currency you use. One example would be adding your VISA/Mastercard credit or debit card to your Binance account. Users may place a credit/debit card crypto purchase order on Binance and select the fiat-to-crypto of interest.
2. Deposit local currencies and trade immediately via bank transfers
We’ve made it possible for you to deposit select fiat currencies, like the Russian ruble (RUB), Australian dollar (AUD) and Brazilian reais (BRL) on your Binance account. Depending on compliance requirements and regions, terms and conditions may apply. You can then use these deposited funds to immediately purchase Bitcoin on the Spot, Margin, and Futures markets on Binance. One way to deposit local currencies on Binance would be through the users’ wallet page. Users can first select “Fiat and Spot” under the “Wallet” page and click on “Deposit” to choose the fiat currency of their choice.
3. Third-party and e-wallet options
Some wallets allow you to purchase cryptocurrencies and stablecoins directly from the wallet interface. However, others can only be used to make purchases on a cryptocurrency exchange. Many wallets and exchanges accept credit cards, debit cards, direct bank transfers, PayPal and more. An example of an e-wallet payment gateway would be Advcash. Users can deposit supported local currencies on Advcash, which they can then purchase cryptocurrencies on Binance.com.
4. Convert and OTC Portal
The newly launched Convert and OTC Portal allows you to buy both small and large amounts of cryptocurrencies using the funds in your account, including select local currencies, at prices that are sometimes better than what’s available on the open market. Plus, users won’t have to worry about slippage or impacting the charts. For example, users can start converting funds from their account to cryptocurrencies via Binance’s Convert & OTC Portal. To begin, users would first have to have a sufficient amount of funds in their account’s spot wallet and complete the Intermediate verification.
5. Buy locally with P2P Trading
Buy Bitcoin directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of Bitcoin listings to shop the best offers on Bitcoin from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world.
One of the less frequently used options for buying and selling cryptocurrencies is through Bitcoin ATMs. You’ll need a crypto wallet to use a Bitcoin ATM. You can use crypto wallets to buy Bitcoin, and in some cases, sell Bitcoin directly using your credit and debit cards. However, you do need to find a reliable terminal first.
How to Buy Cryptocurrencies on Binance
Binance is the largest cryptocurrency exchange in the world per market capitalization. It offers users different options for buying cryptocurrencies. You can either pay with a credit card, bank transfer, or exchange Bitcoins for altcoins. The Binance peer-to-peer network also allows users to purchase cryptocurrencies from other traders and pay with their local currency. Regardless of the option you choose, the steps below are essential.
Step One: Create an account on Binance and complete identity verification to enjoy the full Binance experience. Without KYC verification, you can only enjoy limited features.
Step Two: Link your credit, debit, or bank account number and start buying cryptocurrencies. The user interface is intuitive and easy to understand, even if you're a first-time buyer.
Step Three: Alternatively, you can deposit USD via bank transfer and receive 1:1 BUSD in your balance. Read “How To Deposit USD” for more information. Afterwards, you can start trading.
Step Four (Optional): You may also skip step two and buy cryptocurrencies directly from other users through Binance P2P. Binance P2P is another popular option among cryptocurrency traders on Binance. However, you’ll need to create a Binance account to start P2P trading with cryptocurrency traders.
The Bottom Line
Cryptocurrencies are here to stay, and anyone who wants to take advantage of the current or future benefits can start to get involved today. However, always remember that there is no such thing as a risk-free investment. So, educating yourself on other use cases of cryptocurrencies beyond the financial sector is an excellent way to stay in the loop.
Ready to buy cryptocurrencies? Kickstart your cryptocurrency journey with Binance
Get started by signing up for a Binance.com account or download the Binance crypto trading app. Next, verify your account. After you’ve verified your account, there are two main ways to buy cryptocurrencies on Binance using cash: you can buy crypto with cash from Binance via bank transfer, card channels or e-wallets options.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Bitcoin and more than 100+ cryptocurrencies.
Disclaimer: Cryptocurrency investment is subject to high market risk. Binance is not responsible for any of your trading losses. The opinions and statements made above should not be considered financial advice.
Read the following helpful articles for more information:
(Support) How to complete Identity Verification?
(Support) How to Buy Crypto with Debit/Credit Card on the Website and the App
(Support) New Cryptocurrencies Added to Binance