It’s a guide wherein you will come to know how to buy Bitcoins online. Here, we have shared easy ways to buy BTC.
Well, there are many options for buying Bitcoins online!
So, keep reading!!
Herein, you will learn the best ways of buying Bitcoins online.
We know the hard fact that buying bitcoins can be very confusing and frustrating. However, you will find ample information that will make it easy for you to buy bitcoins online.
So, if you want to know how to buy bitcoins online, then you’re in the perfect place.
This guide will allow you to understand the following key points:
- How & where to buy Bitcoins?
- How to select the right exchange?
Before we go in-depth into buying Bitcoins, we want to sum up the whole methodology of buying coins.
It all boils down to this short answer:
- You need to find a Bitcoin exchange
- Trade your local currency (US Dollar/Euro) for Bitcoins
- Lastly, you have to move your Bitcoins into a secure Bitcoin Wallet
So, you can get started by downloading a Bitcoin wallet.
You can then move on to purchase your first Bitcoins. You would be happy to know that it is very easy to buy Bitcoins with either a credit card or transfer funds directly from your bank account.
The fastest way of buying BTC is by using a credit card.
The process is fast and easy. It hardly takes a few minutes. However, you are charged some fees.
The next popular and cheaper way of buying Bitcoins is to purchase them on an exchange.
Here, we have elaborated both of these methods.
Before explaining these two methods, you need to know how to choose the perfect Exchange (Bitcoin Exchange) for your needs.
You must consider these factors that we have listed below:
- Keep your information safe
You must cross out those payment methods (such as Bank Transfer, Debit Card, or PayPal) that require you to dish out personal or identifying information. In fact, the most private way of buying Bitcoins is with cash or cash deposit. It allows you to buy Bitcoins without verification or ID.
- Limits: Do you want to buy a lot of Bitcoins?
If you want to purchase a number of Bitcoins – let’s say 25 or more – then the major exchanges are the best way to go.
For instance, Coinbase offers high limits for buying Bitcoins with a bank account. Moreover, CoinMama offers the highest limits for buying Bitcoins with a credit card.
We must tell you that most of the cash exchanges have no buying limits. Limits do depend on individual sellers. It is usually lower than in online exchanges.
- Speed: When do you want to access your Bitcoins?
Here, the important thing for you is knowing how quickly you want to convert regular money to Bitcoins.
In fact, different payment methods do deliver your Bitcoins at different speeds. For example, Bitcoin ATMs are recognized as the fastest way to purchase Bitcoins.
Plus, some brokers offer instant buys using a credit card, debit card, or bank transfer.
- Exchange Rate
You must know that there is no official Bitcoin price. So, you must compare Bitcoin prices across major exchanges.
- Reputation: Don’t Be Scammed!
You must find a trusted exchange.
You must ascertain how long the exchange has been in service. Is the exchange trustworthy?
- Fees: Whether you’re getting a good deal?
You must find out how much the exchange charges for its services. The fee will depend upon the payment method you select to use.
You must include deposit and withdrawal fees. Plus, trading fees, as well. In fact, some exchanges do lower their fees if you go on to trade a lot of Bitcoins.
- Payment Method
You need to finalize how you want to pay for the Bitcoins. So, the payment method is the most important factor. Moreover, we believe that you would have a payment method in mind that you’d prefer to use. In fact, some exchanges do require a Bitcoin Wallet before you can buy.
Contents
Quick tips for making your first Bitcoin purchase
Here, we share with you some main points that you need to consider when making your first Bitcoin purchase:
- You should install an offline Bitcoin wallet & come up with a strong password to protect it
- You should set up an account on Coinbase
- Select your preferred payment method
- Buy some Bitcoins
Step #1: Find a suitable Bitcoin Wallet
Digital “wallets” are being used for storing Bitcoins.
What’s essential for you is to choose one that works for you.
The best way for you is to use the Wallet automatically comes with our recommended exchange, Coinbase.
However, you can even set up a wallet that is not linked to an exchange. It will help ensure that you can access your Bitcoin even in overwhelming traffic or site closure.
Here, we have listed some good options:
Mycelium: It’s a popular mobile wallet
Exodus: It’s free to use offline application, which comes with support for a number of cryptocurrencies such as Bitcoin. It offers some simple graphing tools that will help you to visualize your cryptocurrency portfolio.
Bitcoin Core: It serves as a Bitcoin node. It’s a free and open-source choice. It goes on to verify payments and accepts payments from only valid blockchains.
Note: Although you can use an online wallet for your first Bitcoin purchase. However, you should store it in an offline “cold” storage” Wallet for having maximum protection.
Checkout 20 Best Bitcoin Wallets
Step #2: Select the Right Bitcoin Trader
Well, the best place for making your first Bitcoin purchase is on an exchange. In fact, there are plenty of exchanges out there that come with varying performance.
You need to pick a suitable exchange to start with. Here, we recommend that you should use Coinbase. You can even compare other exchanges by using a Bitcoin exchange comparison site.
We must tell you that it is easy to sign up for a Coinbase account. However, you will have to provide some form of identification. For example, you need to send a live image of your face using a webcam.
Coinbase will allow you to buy & sell Bitcoin.
You should also sign up for its linked exchange platform – Coinbase Pro. It will allow you greater control over your purchases.
You can even take a direct route in buying Bitcoin. So, you can choose a peer-to-peer service like LocalBitcoin or BitQuick. They have a wide array of payment options. Moreover, they facilitate the purchase of Bitcoins directly from a seller without resorting to the exchange middleman.
Have a look at: 10 Best Cryptocurrency Exchanges
Step #3: Select your Payment Method
Although exchanges accept various payment options, however, you should be careful of scam sites. Many popular and legit exchanges accept both bank account and credit or debit card transfers for payments.
It requires you to link at least one payment solution to your account before you go on to make a trade. Nowadays, many exchanges offer PayPal as a method for transfer.
Step #4: Buy Bitcoins & store them in your Wallet
Exchanges offer you information on how much Bitcoin you can buy against a certain sum of money. That said, the volatile nature of Bitcoin prices can vary by exchanges.
So, it means that although you may have a lot of money for buying Bitcoins, you may end up buying a fraction of a Bitcoin. For most people, this is the route they will follow because only some wealthy can afford multiple Bitcoins in one go.
To make your first trade, you need to input the amount of Bitcoin you want to buy in the provided field. You can then click the buy button.
For example, on Coinbase, it will be a basic market buy order that will allow you to purchase Bitcoin at the best market rate.
Moreover, you can even place a limit order. This will enable you to set a price that you’re willing to pay for a certain amount. In fact, a trade will result when that amount shows up at that price.
Once you make the purchase, your new Bitcoin will get stored in your Coinbase wallet. However, you need to pay a small fee for doing so. It is part and parcel of Bitcoin transfers. The good thing here is that the fees for such trades are, in fact, far from their peak.
Step #5: Be ready to use it
While selling your Bitcoin (hopefully at a profit) or using it to purchase something, you should do so at a moment’s notice. The matter of fact is that the value of Bitcoin fluctuates (somewhat) wildly. So, you should plan your game early on.
It means that you should set up a seller account. Plus, you should figure what to buy with it before you go to make a purchase.
This will allow you to complete your transactions with ease.
Different Ways of Buying Bitcoins:
- By using a Credit/Debit Card
- On an Exchange
- Through a Bank Account or Bank Transfer
- By using cash
- By using PayPal
1. Buying Bitcoins Using a Credit Card
Step #1: You need to input your Bitcoin address & choose the desired purchase amount
You need to visit the buy Bitcoin page. Now, you have to enter the amount of BTC that you want to purchase. After this, you have to specify the Bitcoin address to which you’re purchased, Bitcoins will be sent.
For this, you have to open your Bitcoin Wallet, copy your Bitcoin address, and paste the address into the Bitcoin Address field.
The Bitcoins that you have purchased will be sent to this address. Moreover, you can download a Bitcoin Wallet for free.
Step #2: Input Billing Info
After the input of your Bitcoin address and purchase amount, you have to click the button to continue. Now, you will be directed to the checkout form. You need to follow the steps and input your information.
Well, your purchased Bitcoins will then be sent to your Bitcoin Wallet Address.
It will take from ten minutes to almost an hour.
So, you see that it’s very easy to purchase Bitcoin online with a credit card. Moreover, it’s fast and secure. Plus, delivery of Bitcoins is instant after initial verification is complete.
However, buying Bitcoins with a credit/debit card involves high fees. It’s not a private way to buy. Buying with a credit card requires your ID.
2. Buying Bitcoins on an Exchange
A Bitcoin Exchange is simply an online marketplace that enables users to buy & sell Bitcoins once they successfully set up an account on the exchange.
Here, it’s important to note that you need to choose an exchange based on the country where you’re residing and the desired purchase currency.
Plus, it’s also vital that you choose the right Bitcoin exchange, which should be based on your specific needs.
Now, we will brief you about buying Bitcoins on an exchange:
Step #1: Choose an Exchange
You should choose an appropriate exchange by referring to the list of popular exchanges.
Step #2: Set up Account
You need to set up an account on the exchange. Based on your exchange, various forms of identification may be required.
Step #3: Connect Bank
You have to connect your bank account to your exchange account. All your buys or sells will be deducted or deposited into your chosen bank account.
Step #4: Select Amount to Purchase
After creating your account on your chosen exchange and have added a bank account, you need to navigate to the exchange’s Buy feature.
Here, you have to select an amount of BTC to purchase, enter your Bitcoin address, and confirm the purchase. Lastly, you need to wait for the purchased Bitcoin, which will reach your Wallet.
3. Through Bank Account or Bank Transfer
Bank Transfer has become one of the preferred ways of buying Bitcoins in most countries. In fact, it is the right way when you need to purchase large amounts of Bitcoins. Moreover, it involves one of the lowest fees.
So, you can hope for a great price on your purchase.
However, it usually requires ID verification. Hence, it is not a good choice for privacy. Plus, a bank transfer is much slower. For example, bank transfers in the USA can take up to five days to complete.
Here, we have shown some of the best ways of buying Bitcoins with your bank account:
4. By using cash
The cash deposit is regarded as the fastest and the most private way of buying Bitcoins. In fact, you tend to receive your Bitcoins within a couple of hours.
Cash exchanges are suitable as no personal information is required. Plus, it is nearly instant. There is no need to wait five days for a bank transfer for processing.
That said, cash exchanges have a price that is 5-15% above the market rate. Moreover, you have to remain alert as you can easily get scammed or robbed. You need to adhere to the exchange’s rules.
Here, we have shown some of the best places for buying Bitcoins with Cash instantly:
- BitQuick: USA
- LocalBitcoins: Global
Note: There are Bitcoins ATMs that allow you to purchase Bitcoin with Cash. You simply have to insert cash into the machine, and voila! You get Bitcoins sent to your Wallet. So, Bitcoins ATMs prove to be a fast and convenient way for buying Bitcoins.
5. By using PayPal
You cannot buy Bitcoins directly with PayPal. As per PayPal’s terms & conditions, merchants cannot sell Bitcoins for PayPal.
Moreover, the fees are really high.
In fact, chances are pretty high that your PayPal is linked to your credit card or bank account, which can be used for buying Bitcoins at a much lower fee.
That said, you can buy other digital items with PayPal and then sell those items for Bitcoins.
- Pros of buying Bitcoins with PayPal
In case you have a balance, it can turn out to be an easy & fast way for converting PayPal to Bitcoins
- Cons of buying Bitcoins with PayPal
High fees of over 12%. So, it’s much better to buy Bitcoins with a credit card or bank account.
Concluding
So, you see that buying BTC (mainly with a credit card or on an exchange) largely depends on how quickly you want to complete the transaction. Moreover, what fees you’re willing to pay. Also, how will you’re to register with an exchange?
That said, by using the above ways, you can make your dreams of owning Bitcoins a reality.
Now, you’re well aware of the various ways of buying Bitcoins online. We have shared with you easy ways of buying BTC.
We hope that you would have found the post useful.
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