Part 3/8:
Breaking Down the Conversion Process
To illustrate the steps involved in converting fiat to cryptocurrency, we can break it down into five main stages:
Transfer from Bank to Service Provider: Initiating a transfer from your bank to your selected e-money service or exchange. It's important to avoid expensive transfer methods.
Fiat to Dollar Conversion: Converting your local currency (e.g., British pounds) into a widely-used currency (e.g., US dollars) can incur FX fees and spreads.
Dollar to Stablecoin Conversion: Converting dollars into a stablecoin (like USDT or USDC) may involve conversion fees, despite some providers claiming no charge.