Cryptocurrency is a type (and the most popular) of digital currency. Cryptocurrency or crypto has no physical state other than a code. The basis of any cryptocurrency is the blockchain.
Cryptocurrencies have the following advantages over traditional finance
- decentralisation;
- anonymity;
- transparent systеm.
We can also add that the commission is often low. In addition, after the rapid growth in 2011 and the emergence of new cryptocurrencies, rather than Bitcoin alone, the interest of Ukrainians in cryptocurrencies was a logical outcome. In 2023, Ukraine was among the top 3 countries in terms of interest in blockchain. According to unofficial data, 1 in 6 Ukrainians had digital finances.
The disadvantage of cryptocurrencies is that they cannot be withdrawn or cashed out at a regular ATM. So how do you exchange Bitcoin for Ukrainian hryvnias? You can’t do it directly, and exchanging any cryptocurrency for fiat has many nuances. Bitcoin exchangers often charge high fees. That’s why many users make exchanges on exchanges. It is on exchanges that you can buy Bitcoin for Ukrainian hryvnia. The hryvnia can then be withdrawn to a card and cashed out at an ATM. With the power outage and the fact that cash is accepted everywhere in Ukraine, knowledge of how to exchange hryvnia for cryptocurrency and vice versa is essential. How exactly does one sell cryptocurrency for hryvnias?
The basics of cryptocurrencies
A cryptocurrency is a digital currency that has no physical state. Bitcoin is the first cryptocurrency that has been in operation since 3 January 2009, with the first payment made on 13 January 2009. Currently, there are more than 13,500 types of cryptocurrencies, and they are easily convertible into each other and into fiat currencies. The basis of all cryptocurrencies is the blockchain, which is what gives cryptocurrencies their advantages over traditional finance.
A blockchain is a distributed ledger stored on many computers around the world. It can be hacked only by simultaneously changing the information on all computers together, using programmes for there are no complex operations. To hack the blockchain, you need to capture or destroy them all. And media with false information are corrected or disabled.
In addition to advantages such as anonymity and a transparent systеm, crypto also has a distinctive feature: its purchase is considered an investment because tokens can rise and fall in value, they are rather assets.
Ukrainians have begun to buy and use crypto as a means of payment and an investment tool: Cryptocurrency payments are becoming more frequent and popular. Cryptocurrency wallets are becoming more expensive due to demand. Various changes are being developed for the development of crypto and its security, etc.
In 2023, Ukraine was one of the top 3 countries using blockchain. In addition, in the late spring of 2022, all cryptocurrencies fell, and the market has not yet recovered. But there was a peak before the crash because Ukrainians were actively investing in crypto to avoid inflation.
It is questionable whether Ukrainians were able to provoke a rise in the price of cryptocurrency on their own: ‘Is it possible to buy cryptocurrency in Ukraine?’ – is rhetorical. But how?’ – Through P2P exchange.
The basics of P2P exchange
To buy cryptocurrency, you need to have a cryptocurrency hot wallet, an account on an exchange.
The best option for buying crypto is a P2P cryptocurrency exchange, which is available on almost every crypto exchange.
In such exchanges, users offer to buy their cryptocurrency for fiat currency. Buying cryptocurrency in Ukraine is often done through P2P, as is selling cryptocurrency and getting hryvnias.
The exchange works like this: You choose a deal, agree and follow the instructions.
P2P exchange of digital assets does not require a broker, takes no more than half an hour, and all transactions are recorded. It’s convenient and quite simple, and you don’t need to invest large amounts of money or foreign currency.
However, due to the absence of a broker, the security of P2P cryptocurrency exchange can be questionable. Simplicity attracts scammers, and it will be difficult to get your money back if you transferred it to fraudsters. The support service will help, but this is the time that fraudsters can hide.
There are also nuances in exchanging hryvnia for digital assets, but this type of exchange is often used by traders and cryptocurrency arbitrageurs. And no one said that a P2P exchanger is only for hryvnia and only for Bitcoin, it is an exchanger for exchanging hryvnia for Ethereum, USDT, and many other cryptocurrencies.
Choosing a Platform
The best crypto exchanges are Binance, Coinbase, Kraken, and KuCoin. These exchanges are well-known, have existed for a long time, and therefore are reliable and safe. You can also buy cryptocurrency on them. And these exchanges have P2P exchanges for cryptocurrencies.
For example, registration on Binance is quite complicated, because you need to enter personal data from your full name to your address and zip code, take a photo of a document, and go through KYC identification. But this exchange is known for its security. Binance uses two-factor authentication and stealing your wallet or cryptocurrency is almost impossible.
If you want to preserve your anonymity and the safety of your funds, it is best to choose an exchange that performs AML identification. Kraken is such an exchange.
There are scandals with many exchanges, even the seemingly white exchange Kraken had grounds for a lawsuit. But that was because she supported staking and the SEC suddenly decided it was illegal. There were other accusations, but no financial scandals or high-profile cases.
If you want to buy native tokens of some exchanges, you can buy them directly on their exchanges. There will be many offers, it remains only to choose.
But you also need to check your tokens from time to time. This can be done through our “AnyExchange” service. After verification, you will receive a report on the status of your wallet. If more than 50% of the coins are obtained by dishonest means, your account on the exchange may simply be blocked. If this is the case after checking, contact our specialist and he will try to resolve your issue.
Tokens and coins received by our customers are checked for AML every time.
Exchange process
After you have chosen an exchange, you may have a question: “How to buy cryptocurrency in Ukraine using P2P?” or “How to use P2P platforms to exchange crypto”. There may be instructions on the exchange, but they only work if everything goes according to plan. The instructions for P2P do not say what to do in in case of delayed payment, about various nuances, fraudsters, how not to lose money, etc.
We will show you how to buy USDT on the Binance exchange for hryvnias.
We chose Binance because it is the largest exchange in the world. And the stablecoin USDT is among the top 3 coins by market capitalization.
If you have just registered or changed your password, you will not be able to trade for 24 hours. But if you changed your password more than 24 hours ago, you can trade. Action algorithm:
- Hover over the Trade item in the panel.
- In the column that opens, click on the “P2P” button.
- On the new page there will be a button: Buy/Sell.
- Click on the “Buy” button.
- sеlect the cryptocurrency USDT in the first column.
- Under this column, sеlect hryvnia (UAH) and enter the amount.
- In the next column, indicate the method of payment. There you can even choose a bank card: Monobank, PrivatBank, PUIB, etc.
- After that you will be able to choose a seller, each will have a price and coin limit.
- Once selected, click on the “Buy USDT” button.
- After that, you will need to choose an amount of USDT or UAH.
- Now you need to transfer hryvnias to the seller’s card.
- After that, wait, usually the exchange takes place within five minutes.
If you want to sell cryptocurrency USDT for hryvnias, you need to sеlect the “Sell” button, not the “Buy” button. Steps required for purchase:
- Choose a payment option, amount and coins.
- sеlect the seller and click on the “Sell USDT” button
- Enter your card number and wait for payment. In no case do not send cryptocurrency until you receive payment in hryvnias.
- After the payment goes through – send USDT to the seller.
- Don’t close the window until the deal is done, as it may take a long time to load.
You can also create your own offer, but the customer can wait for hours, so it is better to respond to offers that already exist. But if you still decided – check the current exchange rate of cryptocurrencies on our “AnyExchange” service.
When choosing a seller, pay attention to the percentage of successful transactions, if it is higher than 90% – most likely, the seller is decent and honest. But if he offers to buy crypto at a very low price – maybe he is a fraud, even if he has 100% successful transactions.
The USDT cryptocurrency is famous for its speed, especially on the Tron network, but there are times when you have to wait 10, 15 or even 30 minutes. However, 30 minutes is the limit. If you wait longer, do not close the window, but open a new one and check your balance there. If the crypt has not yet arrived, write to the support service. In the letter, write that you were cheated, specify as many details as possible: time, amount, seller’s nickname, etc. Please check your account again before shipping. If there is still no crypto payment – send a complaint. But if you write a false complaint, Binance can introduce sanctions against you: from a warning to blocking your account.
Taxation and regulations
In Ukraine, from the beginning of 2022, the “Law on Virtual Assets” was introduced, which will enter into force only in 2024. There is no clear regulation and status of cryptocurrencies in the law. However, the law is adopted on the basis of the MiCA bill as a regulatory framework.
There are restrictions on financial income from the crypto for citizens and residents of Ukraine, in case of exceeding which it is necessary to provide evidence of the legal origin of the funds (the amount for the entire turnover of buying and selling coins in 1 day):
- up to 150,000 hryvnias – the bank does not have any questions regarding the origin of funds for a citizen of Ukraine;
- more than 150,000 hryvnias – the bank will show increased attention, monitor all transactions, etc. But the citizen will not receive any accusations or letters;
- more than 400,000 hryvnias – the citizen will be checked.
In the event of an inspection, the citizen will be required to provide evidence that everything was legal. Even evidence that all transactions and payments are transparent was accompanied by information about the buyer and the seller. However, in the case of P2P trading, taxes on purchases in Ukraine are not even considered. But if there is income from trading cryptocurrencies, only the amount of profit is taxed upon withdrawal. However, if a citizen owns an asset for more than 365 days, he does not pay tax upon its withdrawal. This amendment should be made to the Tax Code, and the law will enter into force only in 2024.
Investments and the Future
Cryptocurrency is an asset that is often used for short-term investments. Most cryptocurrencies grow by 10%, 50% and even 1000% in the first year. Some can even rise by 10% per day, although this is followed by a correction that can reach 90% or more. Coins can also be obtained during an ICO (initial distribution to investors) or an airdrop (sale of a coin at a reduced price or for free).
If in 2022, during the bear market, Ukrainians provoked a short-term growth before the collapse, then they definitely already understand what a crypt is. However, many large investors consider cryptocurrency a frivolous asset and do not know if it is legitimate. After clear laws and regulations appear, it is the big investors who will be in the market, because anonymity and decentralization, financial freedom – exactly what they are looking for. It is possible that there will be foreign investments, because taxes in Ukraine are lower than in EU countries. This should be the case with cryptocurrency taxes.
Conclusion
Many investors often give advice on exchanging hryvnias, dollars, euros and other fiat currencies for Bitcoin, for investment. But no one gives advice on how to exchange. P2P exchange is best suited for trading, especially since it is completely legal in Ukraine.
Arbitrageurs and traders use P2P as the best way to convert hryvnias into cryptocurrency. After all, it is suitable for scalping, short-term investments, etc.
But if you want to withdraw your cryptocurrency – use our “AnyExchange” exchanger
. We guarantee your anonymity and the safety of your funds. We will help them withdraw, if necessary, talk about taxes, print certificates so that the regulators have no doubts about your decency as an investor. We’ll even deliver cash straight to your door if you need it.
