Step-by-Step Guide: How To Buy Bitcoin
Introduction to Buying
Want to learn how to purchase bitcoins?
Our step-by-step guide will help you!
Ultimately, the steps are:
- Find a Bitcoin exchange
- Trade your local currency, like U.S. dollar or Euro, for bitcoins
- Move your bitcoins into a secure Bitcoin wallet
For a step-by=step guide, read this guide on how to buy Bitcoin and you’ll understand these key points:
- How and where to buy bitcoin
- How to choose the right exchange
- How to secure your coins
- How to avoid scams
Choosing an Exchange: Which is the Best Bitcoin Exchange?
To select the perfect exchange for your needs, consider these 7 factors.
1. Privacy: Keep Your Information Safe!
Want to buy Bitcoin privately?
Buying bitcoins with cash or cash deposit is the most private way to purchase bitcoins.
2. Limits: How Many Bitcoins Do You Want to Buy?
If you need to buy a large amount of bitcoins–say 25 or more–then big brokers or major exchanges are the way to go.
Coinbase has high limits for buying with a bank account.
CoinMama has the highest limits for buying with a credit card.
Most cash exchanges have no buying limits. Limits, however, will vary between individual sellers and are usually lower than online exchanges.
3. Speed: How Fast Do You Need Access to your Bitcoins?
How quickly do you need to convert regular money into bitcoins? Different payment methods deliver your coins at different speeds.
Bitcoin ATMs are fastest way to purchase bitcoin if you’re lucky enough to have one in your area. Here’s a map to help you out.
Some brokers offer instant buys with bank transfer, credit card, or debit card.
6. Fees: Are the Fees Too High?
How much does the exchange charge for its services? The fee will vary greatly based on the payment method you choose to use.
Remember to include deposit and withdrawal fees as well as trading fees. Some exchanges will lower their fees if you trade a lot of bitcoins.
7. Payment Method
How can you pay for the bitcoins? Payment method may be the most important factor.
We’re sure you already have a payment method in mind that you’d prefer to use. Read below.
Where to Buy Bitcoin?
- Purchase bitcoins online with a credit card, debit card, or bank transfer.
- Acquire bitcoins from a Bitcoin ATM near you.
- Buy bitcoins with cash locally or via cash deposit.
- Convert PayPal to Bitcoin online.
The above was just a brief overview of where you can buy bitcoin. Now, let’s get into the details.
In order to buy bitcoins, you’ll need to exchange your local currency, like Dollars or Euros, for bitcoin. Here’s an overview of the 4 most common payment methods:
Credit or Debit Card
Credit/debit cards are the most common way to pay online. So, it’s really no surprise that many people want to buy bitcoins this way.
Why buy bitcoin with a credit/debit card?
- Credit cards are a payment method most people are familiar with; probably the easiest way to buy bitcoins online
- Delivery of bitcoins is instant once initial verification is complete
Why NOT buy bitcoin with a credit/debit card?
- High fees; if you’re patient and not in a rush to buy then use a bank transfer for lower fees
- Not a private way to buy; your ID will be required to buy with a credit card
A few places to buy bitcoins online with a credit card are:
Bank Account or Bank Transfer
Bank transfer is probably the best way to buy Bitcoin if you want to avoid high fees.
Why buy bitcoins with bank account/transfer?
- Good way to buy large amounts of bitcoins
- Using a bank transfer will usually result in the lowest fees, so you can get a great price on your purchase
Why not to buy bitcoins with bank account/transfer?
- Usually requires ID verification, so not a good choice for privacy
- Slow; in the USA, bank transfers can take up to 5 days to complete
Some of the best ways to buy bitcoins with your bank account:
Cash deposit is often the fastest and most private ways to buy bitcoin. You can usually receive your bitcoins within a couple hours.
What are cash exchanges good for?
- More private since it usually requires less identification
- Can be nearly instant; no need to wait 5 days for a bank transfer to process
What are cash exchanges bad for?
- Privacy comes at a cost; cash exchanges often have price 5-15% above market rate
- Easier to get scammed or robbed; need to be on alert and follow the exchange’s rules
Some of the best places to buy bitcoin instantly with cash:
- LocalBitcoins – Global
There are Bitcoin ATMs all around the world that let you purchase bitcoin with cash.
You simply insert cash into the machine, and get bitcoins sent to your wallet.
Use Coin ATM Radar to find a Bitcoin ATM near you.
What are Bitcoin ATMs good for?
- Can be more private since in most cases no personal information is required
- If you have an ATM in your area it can be a convenient and fast way to buy coins
What are Bitcoin ATMs bad for?
- Privacy comes at a cost; Bitcoin ATMs often have a 5-15% premium above market rate
There is no way to directly buy bitcoins with PayPal. Under PayPal’s terms and conditions merchants are not allowed to sell bitcoins for PayPal.
However, there are a few hacks to get around this. You can buy other digital items with PayPal and sell those items for bitcoin.
Why buy bitcoins with PayPal?
- If you already have a balance, it can be an easy and fast way to convert PayPal to bitcoins
Cons of buying bitcoins with PayPal
- Fees are over 12%; much better to just buy with a credit card or bank account