So you’ve learned the basics of bitcoin, you’re excited about the potential, and now you want to buy them *. But how? Where to buy Bitcoin?
(* Please, never invest more than the amount on which you can afford to lose – cryptocurrencies are unstable, and the price may fall dynamically as well as grow).
Bitcoin can be bought on the stock exchanges or directly from other people via the exchange office.
You can pay for it in various ways, starting with cash, through credit and debit cards, ending with bank transfers, and even on other cryptocurrencies, depending on who you buy them and in which country you live.
1 – Sey up your wallet
The first step is to set up a bitcoin storage wallet – you’ll need it, regardless of your preferred purchase method. It can be an online wallet (as part of a trading platform or an independent supplier), a computer wallet, a mobile or offline wallet (such as a hardware device or a wallet with a photocode).
Even in these categories of portfolios there is a wide range of services to choose from, so you should do some research before deciding which version best suits your needs.
You can find more information about some wallets, as well as tips on how to use them here and here.
The most important part of any portfolio is the secure storage of keys (string) and / or password. If you lose them, you will lose access to the bitcoin stored there!
2 – Buy at Currency eschange office
The easiest and fastest method to buy Bitcoin is to use a cryptocurrency on-line currency exchange office. You will carry out the transaction really quickly and without unnecessary formalities.
3 – Open an account on the stock exchange
Cryptocurrency exchanges will buy and sell bitcoins on your behalf. There are hundreds of currently operating, with varying degrees of liquidity and security. New ones are still appearing and others are disappearing. As in the case of wallets, it is advisable to conduct a pre-selection discovery. You can be lucky and have several reputable exchanges to choose from or your access can be limited to one or two, depending on where you live.
Currently the largest bitcoin exchange in the world in terms of volume in US dollars is BitMEX, although it is mainly targeted at dealers in spot transactions. Other large stock exchanges are Binance, Bitfinex, Coinbase, Bitstamp, Bittrex and Poloniex, however, in the case of small amounts, the exchanges with the highest reputation should work well. (Note: at the time of writing, the increase in interest in bitcoin transactions is burdening most of the buy and retail operations, therefore it is recommended to be patient and cautious).
Thanks to the clarification of the customer knowledge (KYC) and anti-money laundering (AML) regulations, many exchanges now require verified identification for account configuration. Typically, it will be a photo of the official identity document, and sometimes also an address confirmation.
Most exchanges accept payments by bank transfer or by credit card, and some of them support Paypal. Most exchanges charge fees (which usually include fees for using the Bitcoin network).
Each exchange has a different procedure, both configuration and transaction, and should give you enough data to be able to make a purchase. If not, consider changing the service provider.
After receiving the payment, the exchange will buy the appropriate amount of Bitcoin on your behalf and deposit them in the automatically generated wallet on the stock exchange. It can take several minutes and sometimes hours because of network bottlenecks. If you want (recommended), you can transfer funds to your off-exchange wallet.
BUYING FOR CASH
4 – Choose the purchase method
Platforms like LocalBitcoins will help you find people nearby who want to exchange bitcoins for cash. In addition, LibertyX has a list of retail stores in the United States where you can exchange cash for bitcoins. And WallofCoins, Paxful and BitQuick will direct you to a nearby bank branch that will allow you to make a cash deposit and receive Bitcoin a few hours later.
ATMs are machines that send Bitcoin to your wallet in exchange for cash. They work in a similar way to bank ATMs – you insert bank notes, enter the QR code of your wallet on the screen, and the appropriate amount of bitcoins is sent to your account. Coinatmradar can help you find a Bitcoin ATM in your area.