Starting cryptocurrency without using centralized exchanges (CEX) can be a bit complicated, but here are some options:
Decentralized Exchanges (DEXs): Unlike CEXs, DEXs do not hold your funds. You manage the private keys. Examples include Uniswap, Sushiswap, PancakeSwap. These platforms often utilize smart contracts to facilitate and automate the trading process. However, these services usually require you to already possess some form of cryptocurrency, so they might not solve the initial problem of converting fiat currency into cryptocurrency, but they do serve as an important tool when avoiding CEXs.
Peer-to-Peer (P2P) Trading: This involves buying directly from someone who already owns cryptocurrency. However, you must be cautious of possible scams. Always transact with a party you trust. Platforms like Bisq, LocalCoinSwap, HODL HODL, Remitano, and Noones are examples.
Bitcoin ATM: Bitcoin ATMs function like regular ATMs but allow you to purchase (and sometimes sell) Bitcoin. Some ATMs might also allow the purchase of other cryptocurrencies. You insert cash or a credit/debit card, and the ATM sends cryptocurrency to your wallet. However, these ATMs often carry high transaction fees.
Earning Cryptocurrency: Another approach is to earn cryptocurrency directly. Especially if you work in the technology or crypto industry, some companies pay salaries in Bitcoin or other cryptocurrencies. Additionally, there are platforms where you can earn cryptocurrency by performing tasks, providing services, or participating in surveys.
Cryptocurrency Cards: Some companies offer cryptocurrency cards. These allow you to load fiat currency and convert it into cryptocurrency. While this process might involve a CEX indirectly, you don’t interact with the exchange directly.
Mining: If you have the technical know-how and resources, you can mine certain cryptocurrencies. This requires a significant initial investment in computing hardware and power. While Bitcoin mining is currently very resource-intensive and primarily done by large mining pools, other cryptocurrencies can be mined by individuals.
Faucets: Faucets are sites that offer a small amount of cryptocurrency for free in return for completing simple tasks or solving captchas. This is a slow way of accumulating cryptocurrency and usually requires a fair amount of effort, but it is an option.
Before starting with cryptocurrency, it’s important to do your own research and understand the risks involved. Cryptocurrency values can fluctuate significantly, and investment can lead to significant financial loss.