HOW TO BUY BITCOIN
All the top sites rated for your convenience
HOW TO BUY BITCOIN
All the top sites rated for your convenience
Buying Bitcoin used to be very difficult in the past due to the irreversibility of the transaction posing potential fraud risks for the seller. It is now easy to buy Bitcoin with credit/debit cards, bank transfer and PayPal. Most places use KYC (know your customer) and ID verification to prevent money laundering. Should you wish to buy anonymously there are decentralized places.
Understanding the key concepts behind buying Bitcoin
Before buying Bitcoin it is worth understanding a few points to ensure your funds are not lost:
1) Some sites do not have an integrated Bitcoin wallet and you will need to have your own external wallet to send funds to. Electrum http://electrum.org or Exodus http://exodus.io offer decent software wallets. Note: We suggest opting for a hardware wallet if your investing > $1000 as software wallets will not be 100% secure in the long term). We will discuss these in the final section of cryptoschool.
2) Each Bitcoin wallet has an address. This is a long code of letters and numbers. This code essentially is the same as your bank account number. When transferring funds from one Bitcoin wallet to another (eg. from exchange to external wallet) you must ensure that the recipient address is typed exactly as you see it including capital letters. Any mistakes will lead to loss of funds. You must ensure that you send the Bitcoin to a Bitcoin wallet. Do not make the mistake to send to a Bitcoin Cash or Bitcoin Gold or other wallet. The 3 letter code for bitcoin is BTC, whilst Bitcoin Cash is BCC or BCH. By always ensuring you are sending Bitcoin from one Bitcoin wallet to another Bitcoin wallet and ensuring that the recipient address is correct you will not lose any funds.
3) On sending the Bitcoin there will be a network fee which is fractions of a Bitcoin and is set by Bitcoin miners. We suggest to pay the recommended fee (automatically set) otherwise your transaction may not complete.
Top places to buy Bitcoin reviewed
The top places to get Bitcoin will be reviewed. Each is rated out of 10 for ease of use, speed of transferring Bitcoin, reputation, fees, privacy and deposit limits. We have tried and tested them all and we feel that these are the best places to get your Bitcoin from. Once you have your Bitcoin go on to the next section to see how you can exchange them for other coins. Alternatively if you want to keep your Bitcoin see the final section for how to protect your Bitcoin from hackers.
Bitpanda was founded in 2014 and was initially named Noinimal. Bitpanda is one of the world’s largest Bitcoin broker’s and enables you to buy Bitcoin, Ethereum and Litecoin using credit card or bank transfer. It offers buying services tp Europe only at present. It has a wide range of payment methods. Whilst it does not show the fees you will pay it tells you exactly how many coins you will receive for your money. The fees are negligible if using EPS and if using creditcard they are cheaper than most other sites. Purchased Bitcoin will be transferred to your BitPanda Bitcoin wallet from where you can transfer it to an exchange or hardware wallet as we recommend. There is a fee to withdraw funds from your Bitcoin wallet which should be taken into consideration if you are depositing a small amount but with larger amounts this is negligible. They offer one of the highest purchase limits per day so if you need to buy a large amount of cryptocurrency this site would enable that once you are verified. ID verification involves a short web chat to an independent company who will check your photo ID and talk to you on webcam.
Local Bitcoins was founded in 2012, and allows the transfer of Bitcoin directly from user to user. Its a bit like Craig’s List for Bitcoin. The service is available worldwide and to protect you they offer an escrow service. This works by you sending your funds to the seller and the seller will release the Bitcoins to you. Should they not then My Local Bitcoins will release the Bitcoins to you from the escrow service. There are no fees to pay as a buyer, although the sellers may charge a premium for their Bitcoin compared to the current market rate, so its important to shop around for the best offers. Prior to buying ensure the seller has good feedback and is trusted. Whilst no ID verification/name is needed, some sellers may ask for name/ID verification for larger amounts of Bitcoin. You can meet the seller and pay with cash and thereby not disclose any of your personal information which offers a truly anonymous way to buy your Bitcoin. We advice caution if arranging a face to face trade as you are not covered by escrow, so ensure you are dealing with a reputable seller. If your not feeling comfortable buying from others/need your Bitcoins rapidly then stick to the other options and if the deal seems too good to be true it probably is!
Coinbase was founded in 2012 and is one of the World’s largest Bitcoin brokers and enable you to buy Bitcoin, Ethereum and Litecoin using credit card or bank transfer. It offers its services to many countries worldwide (Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States. On purchasing Bitcoin, the funds are transferred to your Bitcoin wallet on coinbase, from where you can move them to an exchange. We recommend if you are not going to trade for alternate cryptocurrenices you move your Bitcoin to a hardware wallet for their security. If paying by bank transfer it can take up to a week to get your Bitcoins, so if you need the coins fast we suggest using debit/credit card.
Receive $10/£7 free when you buy more than $100/£70 worth of Bitcoin using the visit website link above
Coinmama was founded in 2013 and enables you to buy Bitcoin and Ethereum using credit card from practically anywhere in the world. To use this service you must have your own external Bitcoin wallet for funds to be sent to (which is not a bad thing as we advice sending your funds to a hardware wallet such as the Ledger Nano S to ensure you own the private keys to your funds – see protecting your cryptocurrency section for more information). From here you can move your coins to an exchange should you wish to trade them. There is an additional credit card processing fee (5%) meaning you will get less coins or your dollar overall when compared to other options. However this service is slick, efficient and if offers its service to more people worldwide.