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Bitcoin fever has struck the world. The cryptocurrency made headline news as it keeps growing. Do you want to be part of this new currency trend? Do you want to know how to buy Bitcoin? On the other hand, perhaps you want to know how to buy local Bitcoin. We have the inside news here. Find out how you can buy Bitcoin with a credit card and more importantly, the Bitcoin buy care you need to take when buying the digital currency.
What is Bitcoin?
You must agree with us, the biggest conversation online is about Bitcoin. Do you want a part of the action? So, what is it? Bitcoin is an electronic currency you can use to make electronic purchases. What makes it unique is you can trade it at its highest price and make more than what you paid for it. Another great benefit is that no one controls it.
Have we made you curious? Are you willing to part with your money? Good question as once you have done a Bitcoin instant buy, it is irreversible. The truth is, there is no way of getting your money back. The important thing is to prevent unnecessary risks. Want to know more – find out how you can buy Bitcoins online.
Before buying Bitcoins there is a couple of steps, you need to follow:
- First, you need to set up a Bitcoin wallet, learn how to do so using our complete bitcoin wallet guide.
- Once you have set up your wallet, you can buy Bitcoins by using your debit card, credit card, PayPal, bank transfer or at an Automated Teller Machine (ATM).
- Once you make payment, you receive the currency in your wallet.
- The most important thing is to find a secure wallet to keep your Bitcoins safe.
Now you may be wondering how to buy Bitcoins the safest way? The best way to buy is using your credit card. There are other methods discussed here. Each payment method has their strengths and inconveniences. The information we are giving you will help you decide which payment method works best for you.
The easiest way to buy Bitcoin instantly is using your credit card. The credit card offers up to 15% of exchange acceptance at different exchange sites such as Coinbase. These include Visa, American Express, and MasterCard.
How can you buy Bitcoin with a credit card?
When using Coinbase or Bitcoin.com you need to create an account. Once you complete this step, you can enter your credit card number to process the payment. However, before making your purchase it is advisable to note the following fees are applicable to credit card transactions:
- Transaction fees – this fee can vary from one trading platform/broker to another. The fee can start from 0.2% up to 3%.
- Deposit – with a credit card you’re entitled to a chargeback if requested by you. This fee can reach up to 4%.
- Withdraw fees – depending on who you use. They can charge you a fee for withdrawing your own Bitcoin.
- Payment processor fee – this depends on the credit card provider you use. The % can vary from another.
- Currency conversion fee – this fee only applies if you pay dollars at an exchange only accepting Euros.
Once the payment verification is completed, the Bitcoins are transferred into your wallet. The downside is you will pay larger fees and makes it inconvenient for buying large amounts of this electronic currency.
- Fast to use
- More sites accept credit cards
- Easy to use
- Fees are high as you will be charged a minimum 6% risk fee plus your card expenditure fees
- You need to give your card details and makes users feel uneasy
Buying bitcoin using Wire transfer is one of the most common methods of payment when it comes to buying Bitcoins. It is safe, offers higher limitations and if something goes wrong, the bank got your back.
- larger limits compared to the other methods
- Better fees
- May be time-consuming
Buying Bitcoins with PayPal can be a bit more complicated. The reason is that chargeback cases are high. The best PayPal Bitcoin exchange platform is VirWOX. Here you need to buy Second Life Linden (SLL) Dollars with your PayPal and exchange it for Bitcoins. This is the safest and best way to ensure you receive your Bitcoins.
- A reliable method depending on which platform you choose
- Offers a wide selection of sellers around the world
- Some exchange platforms offer you Escrow protection
- High fees
- Can only buy a limited amount
Currently, Coinbase is one of the leading Bitcoin brokers you can find online. You can easily use your debit card to buy Bitcoin up to 150 dollars a week. They charge a 3.99% fee on all the purchases you make with your card and one of the lowest for United States customers. You will have to create an account and connect your debit card to your profile. Furthermore, you will have to verify your identification with them.
- A great way for newcomers to buy Bitcoins
- Offers you high buying limits
- You get instant buy
- The company can track how you spend your Bitcoins and not anonymously
You can use your Prepaid Card (for example Visa Gift Card) at places like Paxful. With them, you can buy Bitcoins instantly using your Prepaid card. The great thing is when you buy for the first time you do not need to pay Paxful any fees. Here you need to pay fees to the seller, as they need to convert your Amazon or Visa Gift Card to Bitcoins. This fee charge can go up to 30%.
- Fast, easy and private
- The seller fees can be high
There are two methods of buying Bitcoins with cash. The first method is using the Bitcoin ATM and the second is doing it in person.
Using the ATM, you can pay a commission between 3 – 8% on top of your normal exchange price. With the ATM machine, you deposit the cash and it sends the digital currency to the address you provided. If you are interested in using a Bitcoin ATM you can locate one near you by using Coin ATM Radars and search by country.
- High levels of secrecy
- Easy and quick
- Fees can become high
If you want to keep your transaction anonymous you can decide on using a face-to-face trade and buy local Bitcoins. You can use a platform like LocalBitcoins. They offer you an escrow service to protect you and the seller. Alternatively, you can meet the buyer in person or look for a local Bitcoin meet up.
- Security and depends if you use an online platform like LocalBitcoins
- Easy and quick
- Can be risky
The truth is there is no way to buy Bitcoin instantly. No matter which trading site you deal with, you need to provide verification. Here are some easy steps to follow to make your verification process a simple one:
- The first step is to open up an account with a verified Bitcoin Exchange site. This allows you to make easy payments to convert your currency into or out of Bitcoin.
- Connect your bank account and do your Id verification.
- Now you can start purchasing the currency.
Steps for validation:
- Always make sure your ID has not expired or has modification
- Make sure that the document you use is without glare
- Capture the full document when taking a photograph by using the Chrome browser or your mobile device
- For US residents you can use your state-issued ID or Driver’s License
- If you live outside the US you need to use your webcam or the mobile camera to complete the verification step
How Do You Store Bitcoins?
This is one of the most crucial points when buying Bitcoin. You need a safe storage place and choosing a Bitcoin wallet is the first and most important step to start dealing with Bitcoins. Here are different wallets you can use:
This is an online exchange where you can buy and sell Bitcoins. Coinbase offers you a standard insured storage and very popular. There are no fees to use the wallet and offer you a Coinbase vault for advanced users.
- Easy payment method
- Very popular among users
- Prone to hacking
Here you can look at Mycelium offering you loads of features and support and is a privacy-focused network.
- Can easily scan QR codes
- Perfect to keep small Bitcoin amounts
- Always available
- Not private when it comes to keeping your keys and identity safe
Here you can look at Electrum a popular desktop wallet as it is simple to use. If you do decide to use this type of wallet, we recommend you have the Linux operating system which is better compared to Windows.
- Can store huge amounts of currency
- Need an excellent PC security in place
If you want to keep huge amounts of Bitcoin, this is your best solution. You use this hardware to store your keys. Every time you want to send currency, you connect the wallet to your PC and go offline once completed. Here you can look at the Ledger Nano which is cheap and accepted by many users. Learn more about it in our hardware wallet guide.
- Safest way
- Stores your private keys offline
- Resistant to malware and viruses
- Can store multi cryptocurrencies on the device
- Not free
The Final Verdict
As you can see there is a lot associated with buying Bitcoins. We hope our guide on how to buy Bitcoins helps you find the best solution. With the information provided, we wish you all the best in your venture. However, remember this cryptocurrency is still in its budding stage and you have to be aware of the legitimacy angle, instability issues, and taxation aspects before you buy Bitcoin locally in your country.