Buying cryptocurrency in Russia has become more difficult since the imposition of sanctions, but it is still available. There are several ways to buy cryptocurrency, each with its own pros and cons.
1. Crypto Exchanges:
Crypto exchanges come in centralized (CEX) and decentralized (DEX) forms. CEX is your standard “banking” option, where you will be thoroughly vetted before you can start trading.
Anonymity is not possible on centralized crypto exchanges. You will encounter KYC/AML (Know Your Customer/Anti-Money Laundering) procedures, which involve providing documents and photographs.
However, you will have a custodial wallet, which means your funds will be held by the exchange. In case you lose your wallet password, you can recover it by providing the documents you previously sent to the exchange.
Centralized exchange interfaces are typically user-friendly for beginners. This is a great place to start your acquaintance with cryptocurrencies, gain basic knowledge and experience, minimizing risks.
Exchanging fiat money for crypto is most often available on centralized exchanges.
2. Decentralized Exchanges:
On DEX, you are responsible for storing your own funds, there is no custodial wallet. Smart contracts provide transaction security.
DEXs do not work with fiat money, so you will have to buy crypto on a centralized exchange first, then exchange it for another cryptocurrency on DEX.
DEX interfaces are not always beginner-friendly, be prepared for more complex navigation.
You must remember the password and seed phrase (a set of keywords) that gives you access to your account. Important! Keep this information in a safe place, as losing it means losing access to your funds.
Your funds are stored only with you, DEXs do not have access to them. This increases security in terms of anonymity, but you are also fully responsible for any risks.
For Russians, crypto exchanges MEXC, BingX, CommEx, Bitget, Huobi, Coinex, Pionex, Phemex, Belarusian Bynex are open, and the list is not complete. Read, learn, wipe the more convenient.
3. Crypto ATMs:
Crypto ATMs, also known as Cryptomats, allow you to exchange fiat money for cryptocurrency and vice versa. Primarily, they offer Bitcoin (BTC) exchange, but some Bitcoin ATMs also support other popular cryptocurrencies, such as Ethereum (ETH) or Litecoin (LTC).
Advantages of Crypto ATMs:
- Speed: The exchange transaction takes a few minutes.
- Anonymity: In most cases, no identification is required to complete the transaction.
- Simplicity: The device interface is intuitive, even if you have never used cryptocurrency before.
Disadvantages of Crypto ATMs:
- Limited Availability: Crypto ATMs are less common than traditional ATMs.
- High Fees: Fees on Cryptomats are typically higher than on exchanges.
- Limited Crypto Selection: Not all Bitcoin ATMs offer a wide selection of digital assets.
How to Use a Crypto ATM:
- Find the nearest Cryptomat (use ATM search services).
- insеrt bills into the device and enter the amount you want to exchange.
- sеlect the cryptocurrency you want to purchase.
- Enter your crypto wallet address.
- Get transaction confirmation.
4. Exchanges:
Exchangers are intermediaries specializing in the exchange of cryptocurrency and fiat money. Their work is to receive a commission (about 3-4% of the amount).
Manual/semi-automatic exchange is done with the help of a clerk during business hours. You need to send an application, get its approval, and then your funds will be credited to your crypto wallet.
Automatic exchange happens instantly after sending the payment and confirming its receipt.
Keep an eye on the cryptocurrency rate! The rate changes constantly, compare prices of different exchangers to get the best result.
Check the minimum and maximum transaction amount limits. Also, make sure that the exchanger supports your payment instruments.
Be sure to clarify whether the commission is included in the transaction cost.
Read reviews, forums and news about the work of the exchanger. This will help you assess its reliability.
Advantage of exchangers: No long verification and authentication. The transaction usually goes without registration or with minimal registration (phone number or e-mail).
Exchangers do not store your funds, which reduces the risk of hacker attacks.
Read more about Russian exchangers in our article “Top Crypto Exchanges in Russia in 2024.”
