How to Buy Bitcoins

Written by on January 1, 2017 in Buy Bitcoin, Featured

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how to buy bitcoins

Ever wonder how to buy a Bitcoins? Well, I assure you, it is quite easy since Bitcoin’s popularity has grown over the years. One thing is for sure, you must be careful who your seller is. In this guide, I will be teaching you several ways on how to buy Bitcoins either online or at a physical location.

Since we are trying to limit the risk of being scammed or paying too much over market price, this guide will show you the well-known Bitcoin trading options and not a brand that does not have any reviews whatsoever. We do expect you to have a Bitcoin wallet ready, whether it be a hardware or software wallet to store your newly bought Bitcoin.

First off, you should understand that we are not responsible for your financial loss using these services or Bitcoin itself. Also, these are only suggestions and you do not have to use them. If you wish to use them, you are using them at your own risk.

Buy Bitcoin online:

Since the internet is a big part of our lives and certainly simplifies a lot of e-commerce problems, this option allows you to use various options to buy Bitcoin including PayPal, Bank Transfer, and others. We are not focusing on country-specific options but trusted  world-wide brokers and exchanges.

#1 – Brokers

Brokers are websites that sell Bitcoin for a set rate. This rate is set by the website itself based on general market data or statistics and cannot be changed by the buyers. Users can use bank accounts, credit, or debit cards for purchasing Bitcoin. Some brokers charge a high fee for being fast and convenient and others do not.

In order to buy from a broker, you must first sign up for an account on their website, add your payment method and payment info, whether that be PayPal, Bank Transfer, Neteller, etc. After that, find the page where you can buy Bitcoin and you should be receiving your Bitcoin in the next couple of minutes or hours.

Here is a list of some trusted brokers:

  • Coinbase – Bank, PayPal, Credit, Debit
  • Xcoins– Credit/Paypal
  • Paxful –  Gift Cards, Bank, Paypal, Credit and more
  • Coinmama – Credit/Debit, Western Union

 

Always remember to check if the broker has ratings and reviews before you consider purchasing. Please note that Wirex itself is also a Bitcoin debit card which means that you can use the Bitcoin you buy with their card, or you can transfer it to an external Bitcoin wallet.

 

#2 – Exchanges

Different from brokers, exchanges offer users the ability to set their own prices and use the buy/sell order method rather than the set price by the platform. This gives all users the liberty to set their own desired buy and sell prices and people can either buy high or low. This option is great for those who are engaged in Forex and would love to buy/sell Bitcoin fast and with ease. Exchanges charge a little fee on all Bitcoin withdrawals and are not a safe place to store Bitcoin.

There are many Bitcoin exchanges but we will be focusing on some of the world’s most famous due to their security and international support advantages. The reason why we will not be talking about country-focused Bitcoin exchanges is due to the different markets. For example, QuadrigaCX is one of Canada’s leading Bitcoin exchanges but only operates in Canada and markets towards a Canadian consumer base.

To start off, go to a trusted Bitcoin exchange and create an account. Most trading accounts require identification in order to unlock the majority of the exchange’s features such as higher withdrawal limits. This might take several days, up to several weeks depending on which exchange you are using. Soon after, you must deposit fiat currency into your account to start buying. Most exchanges support bank transfers and wire which will be very helpful but PayPal is rarely found. Like an online stock exchange, a Bitcoin exchange will allow you to buy and sell Bitcoin with many different currency pairs, depending on the exchange. These pairs include: BTC/USD, BTC/EUR, BTC/GBP, and many more. Once you select which pair you want, you can finally submit a buy order.

Buy orders on Bitcoin exchanges can be customizable, so you can try asking for Bitcoin at the market low or buy at the peak price, your choice. Once you are finished buying, you should see the BTC balance change on your account. Now you are ready to withdraw! Remember, exchanges charge a fee for withdrawing Bitcoin and keeping Bitcoin in an exchange long-term is dangerous.

Here is a list of our top 3 choices for trusted Bitcoin exchanges:

 

There are also decentralized Bitcoin exchanges which operate on a Blockchain and are the safest exchanges in terms of security breaching. The most infamous is Bitsquare which focuses on Bitcoin trading. The largest problem with Bitsquare is that it requires a 0.01 BTC minimum deposit before you can use your account. This means that you will need to get some Bitcoin first before actually using the platform which can be a difficulty for some users.

#3- Buy Bitcoin in-person:

Lastly, there are also several platforms to actually buy Bitcoin in-person but we will mainly be focusing on 3 options: Wall of Coins, Local Bitcoins, prepaid cards, and Bitcoin ATMs. Some people do not trust or don’t quite understand the online ways but it is ok, there are physical locations to buy Bitcoin as well.

Wall of Coins and Local Bitcoins are just websites that hook up buyers and sellers that are close to each other to do P2P (Peer-to-Peer) Bitcoin trading transactions. For example, I would like to buy some Bitcoin but have no idea how to use an exchange, I can go on a P2P Bitcoin buying platform and submit a request to buy Bitcoin. If someone who is selling Bitcoin is interested in my request, we can meet up at a coffee shop or something and trade fiat money for Bitcoin.

Several companies have released Bitcoin prepaid cards for a set amount of Bitcoin which can be transferred to your Bitcoin wallet once redeemed. One great example would be Flexepin’s prepaid Bitcoin cards. Currently, Flexepin is only in Canada and Australia but some other countries have their own businesses that produce prepaid Bitcoin cards as well. All you need to do is go to a store and buy the card for the set amount, then redeem. A $5 card will get you $5 in Bitcoin, and so on.

Finally, Bitcoin ATMs when you absolutely cannot find a way to buy Bitcoin. Bitcoin ATMs work like traditional ATMs such as depositing and withdrawing. However, these ATMs usually charge high fees or tend to sell Bitcoin at higher-than-market price. It is still one of the most trusted ways to buy Bitcoin with ease and most ATMs even allow users to exchange their Bitcoin into fiat currency such as USD or EUR. You can try to find a local Bitcoin ATM in your search engine or you can try visiting CoinAtmRadar which has one of the largest and most updated databases for Bitcoin ATMs across the world. CoinAtmRadar shows the location, who operates it, fees, and if provided, the buy/sell rates at the ATMs.

 

Well, these are our most trusted ways for how to buy bitcoins and hope that you find these useful. There are certainly more ways you can purchase Bitcoin, especially different exchanges and brokers but remember to check their reviews and reliability before making a purchase.

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