Hey everyone! Welcome to our guide on how to buy Bitcoin.
Before we get started, it is important for you to know how you would like to buy Bitcoin. How you buy Bitcoin all depends on the payment method you wish to use, but it also depends on whether you would prefer to remain anonymous or not.
So, before we go ahead, you need to decide which method is best for you. Do you want to know:
- How to buy Bitcoin with credit card?
- How to buy Bitcoin with debit card?
- How to buy Bitcoin with cash?
- How to buy Bitcoin anonymously? (with cash, PayPal or bank transfer)
If you have already decided how you would like to buy Bitcoin, scroll down to find the heading that matches your desired method.
However, if you are unsure, read through the whole of this guide so you can decide which method you are most comfortable with.
Disclaimer: This is not financial advice. Investors should always conduct their own research and consult a financial advisor before making any investment decisions.
Also, if you would like to learn more about Bitcoin, visit our What is Bitcoin article here.
How to Buy Bitcoin with Debit/Credit Card
As this is a beginner’s guide, I am going to show you how to buy Bitcoin from the most popular cryptocurrency broker exchange — Coinbase. There are lots of exchanges that you can buy Bitcoin from, however, Coinbase is very simple to use for beginners.
Here are some key pointers about Coinbase before we begin:
Fees: 1.49% – 3.99%. The fees vary for each payment method — debit/credit card fees are higher than bank transfer fees. You can view the fees in more detail here.
Ease of use: Great for everyone, especially beginners.
Purchase Limit: Yes, the limit changes depending on your desired payment method. This can also be increased by submitting further identification.
Stay Safe: It must be noted that once you have purchased your cryptocurrency on Coinbase, you must transfer your coins immediately to a secure Bitcoin wallet.
How to Buy Bitcoin on Coinbase
Before we show you how to purchase Bitcoin on Coinbase, you first need to open an account. If you haven’t opened an account with Coinbase and would like some assistance then please visit our guide.
Once you have set up your Coinbase account, you can follow the steps below to make a purchase.
- Click the Buy/Sell tab and then click on Bitcoin.
- Then, you will need to enter the amount of fiat currency you would like to spend on Bitcoin. As you can see, Coinbase will automatically convert your fiat amount into Bitcoin (BTC). You also need to select your preferred payment method.
- For demonstration purposes, I have decided to buy £2.10 worth of Bitcoin. This was worth 0.00015717. Once you are happy with your conversion rate, click Buy Bitcoin Instantly.
- Once your payment has been confirmed and you have returned back to Coinbase, click on the Accounts tab. Here you will be able to see the Bitcoin you have purchased in your BTC Wallet.
I didn’t actually make the purchase, hence why there is no transaction history in the image below.
And that’s all there is to buying Bitcoin on Coinbase! Easy, right?
As aforementioned, it is important that you send your funds straight to another secure Bitcoin wallet. If your Bitcoin is stored on Coinbase, then you do not have full control of your funds. If someone hacked into Coinbase’s servers, they could steal your funds.
You wouldn’t want that now, would you?
How to Buy Bitcoin with Cash and Anonymously
Next, I will show you how to buy Bitcoin anonymously and with Cash. The most favoured website for this type of purchase is LocalBitcoins.
LocalBitcoins is a peer-to-peer trading platform that requires no identification. However, depending on who you buy your Bitcoin from, you may be asked to submit verification to them.
Here are some important things to note before using LocalBitcoins:
Safety: LocalBitcoins is a peer-to-peer trading platform, so you must be aware of scammers. Before you open a trade with a seller, always check their trade history. You want to make sure each seller has traded over 50 times (at least) and has 100% positive feedback.
High Prices: Sellers on LocalBitcoins tend to price their Bitcoin at a higher price than the current market price. This is because the sellers can set the price to whatever they wish, and they are also at risk of being scammed. So, unfortunately, you must pay a price for anonymity.
Purchase Agreements: Most of the top sellers on LocalBitcoins lay down the rules before a trade takes place. For example, they might ask you to submit proof of ID before you make a payment to them.
Escrow System: When you initiate a trade with a seller, your desired amount of Bitcoin is locked into an escrow system. This is to protect both you and the seller from being scammed. Once the payment has been confirmed by both parties, the Bitcoin is released into your LocalBitcoins wallet.
There are a few different options to choose from when purchasing Bitcoin on LocalBitcoins, I have listed them below:
- Physical Cash Payment: You can arrange to meet up with sellers who live local to you and pay them in cash for an agreed amount of Bitcoin.
- Bank Transfer: The seller will send you their bank details once you have initiated a trade. In this case, you would send them proof of payment before they release your Bitcoin.
- Cash Deposit: The seller will send you their bank details, along with their preferred bank. You would then need to visit their bank of choice and deposit your cash into their bank account. You would then need to save the receipt and send it to the seller as proof that the payment was made.
- PayPal: You can buy Bitcoin by transferring funds to the seller’s PayPal account.
So, if all of this sounds good to you, follow the steps below and I will show you how to initiate a trade using the Cash Deposit method!
If you want to purchase Bitcoins using another method, then you can still follow the steps below. Just change your payment method to the one you prefer!
LocalBitcoins Account Set Up & Purchase
- Head over to LocalBitcoins and click on Sign Up.
- You then need to fill out the form. Enter a unique Username, Email Address, Password, and then verify that you’re a human!
- Once logged in, click on Buy Bitcoins at the top of the page. Then you will need to select your preferred payment method. For demonstration purposes, I have selected Cash Deposit.
- Now, you need to locate a seller. As aforementioned, it is important to find a seller who has a good amount of trading history (50+ sales) as well as a good reputation. This will be displayed next to their name. Also, if you choose Cash Deposit as your preferred method, make sure you are happy with the bank they require you to go to.
- If you are happy with the seller’s reputation, their bank of choice, and their price, you then need to click Buy.
- Once you have initiated the trade, you will then be presented with the following screen/page. Here, you can see the seller’s terms. If you are happy with the terms and wish to proceed, enter the amount of Bitcoin you wish to purchase.
Most of the traders on LocalBitcoins are friendly! So, if you have any questions or are uncertain of anything, they are usually happy to help.
Once you are satisfied, click Send Trade Request.
There you go, that is how to open a trade on LocalBitcoins! Once both you and the seller agree that the payment has been made, the Bitcoin will be released into your LocalBitcoins wallet.
Just like Coinbase, it is not the best idea to store your Bitcoin on LocalBitcoins. So, you should send your new Bitcoin to a secure wallet immediately.
Finally, you have the option to purchase Bitcoin using an ATM machine. Yes, you read that correctly: Bitcoin can now be purchased using a physical ATM! Pretty cool, right?
This is a great option for those who want to buy Bitcoin with cash or anonymously. The only downside is that there currently aren’t many Bitcoin ATMs around. So, you might have trouble finding one local to you.
Luckily enough though, there is a site that shows you where all the Bitcoin ATMs are located. You can visit it here. While most allow anonymous purchases of Bitcoin, some do actually require ID, so be sure to check in advance.
There are a few different versions of Bitcoin ATM machines, however, they all follow a similar process. The process will generally be as shown below:
- Select the option to Buy Bitcoin
- Enter your mobile number into the ATM
- You will then receive a text message with a verification code
- You need to enter this code into the ATM Machine
- The ATM will then ask you for your Bitcoin wallet address
(If you haven’t set up a Bitcoin wallet, you will need to select the option that goes along the lines of “I don’t have a Bitcoin wallet”. The ATM will then create a Bitcoin wallet for you and print out the details. The Bitcoin that you purchase will then be stored in this wallet, so it is important for you to keep this safe!)
6. Enter the Bitcoin wallet address that you would like your Bitcoin to be sent to
7. If you are happy with the conversion rate, insert your cash into the ATM
8. Click “Send” and the Bitcoin will be sent to your wallet instantly
Yep, it is that simple!
As I have already mentioned, the only problem with Bitcoin ATMs is that there aren’t enough of them. However, as the years go on, I am sure they will become more and more popular.
Top Tips: How to Invest in Bitcoin, Altcoins and Blockchain Tech
Investing in cryptocurrencies has become big business and is showing no signs of slowing down. In fact, the bigger the sector gets the more complex investing in it becomes.
The most obvious way to invest in cryptocurrency is to buy some in one of the ways described in this guide. However, there are numerous other ways how to invest in Bitcoin, altcoins and blockchain technology more generally.
Let’s have a look at some of the increasingly diverse ways you can participate in this watershed technological innovation…
Investing in Bitcoin
At the moment, the best way to invest in Bitcoin is still to buy it. Buying Bitcoin from an exchange and holding the keys in your own private wallet gives you complete control over your coins in the way that Satoshi Nakamoto intended when they designed the system.
Alternative means of investing in Bitcoin are available though, and are set to become more influential in the coming months and years.
Bitcoin futures are a hot topic leading into 2019 and could help investors offset the risks inherent in trading Bitcoin on the open market.
Investors buy a unit of Bitcoin at a particular price under the condition that they will sell it again after a set period of time has elapsed. If the investor feels the price will rise during the set time frame then they will agree to sell their Bitcoin for the end price, if they think it will fall, then they’ll agree to sell their Bitcoin at the start price.
Bitcoin futures essentially function as a bet on the future price of Bitcoin (hence the name!) but there are other options for how to invest in Bitcoin, namely options!
Bitcoin options are mechanisms designed to allow investors the right to buy or sell Bitcoins at a particular price when the options mature, whilst being under no obligation to complete the transaction. There is often a premium for using this kind of service.
Both options and futures will afford investors the chance to participate in the Bitcoin ecosystem without having to assume the risks associated with the open market or the responsibilities associated with storing and securing cryptocurrency.
Investing in Altcoins
Investing in alternative cryptocurrencies, sometimes referred to as altcoins, can furnish investors with fresh and exciting opportunities beyond those offered by the well-established and world-famous Bitcoin.
Investors who choose to buy altcoins expose themselves to perhaps greater risk than those who only invest in Bitcoin but also open the door to greater rewards.
Purchasing an altcoin in its ascendency has the potential to yield huge profits, however, many new cryptocurrency ventures end in failure, so this approach is very much a double-edged sword.
The key thing to remember when investing in altcoins is utility. What does the coin do and is it useful and/or unique? If it is, then it might be worth investing in. The functions of different altcoins are myriad, so some diligent research may be required before you make your choice.
Altcoins offer applications as diverse as computer power-sharing (Golem), data aggregation (Augur) and Internet-of-Things payment channels (IOTA). Doing your homework before buying will also help you avoid the sorts of scams that are regrettably common in this area.
Investing in Blockchain
Investing in blockchain technology doesn’t necessarily mean buying cryptocurrencies or crypto derivatives.
The blockchain sphere is expansive and there are thousands of different projects in various stages of development all around the world.
You could invest in a blockchain healthcare services provider in the States, like Solve.Care or a London-based blockchain property deed solution, like Mattereum.
Mainstream companies like IBM, Alibaba and Morgan Stanley are all investing heavily in blockchain development so buying shares in any one of these companies would allow you to participate in the sector in a more conventional way.
Then there’s the developers themselves, like Consensys and Intellectsoft, who’ve positioned themselves at the bleeding edge of this new technological boom.
By investing in software development firms like these, you’ll essentially be investing in hundreds of different blockchain projects all under one roof!
Buying Bitcoin might be your first step into the world of blockchain investment but you don’t have to stop there, endless possibilities are available to the intrepid explorer…
So, buying Bitcoin and investing in blockchain tech isn’t so difficult after all, is it?
Let’s quickly recap on what we have learned today:
If you’re looking to purchase Bitcoin with ease, your most suitable option is Coinbase. The fees aren’t too bad when compared with other brokers and they offer a good level of security too.
So, for any of you that don’t mind sharing your identity and paying with debit/credit card or bank transfer, this is the best option for you.
If you’re looking to purchase Bitcoin anonymously, your best option is LocalBitcoins. There are plenty of payment methods available and you should easily be able to locate a reputable seller.
Just remember, you should always prioritize security. It is important to protect yourself from scammers at all times. For this reason, we wouldn’t recommend LocalBitcoins as the best choice for cash purchases, but we do recommend it for finding anonymous purchasing options.
If you’re looking to purchase Bitcoin in cash, using a Bitcoin ATM might be the best option for you. They offer a quick solution to buying Bitcoin, providing that you live close enough to one.
As a beginner, buying Bitcoin can be overwhelming — there is a lot to take in. Understanding how Bitcoin wallets work can also be quite daunting. However, this phase will pass, believe me. I know this from experience.
Anyway, if you still have any questions, feel free to ask in the comments section below — we would be more than happy to assist you guys further!
Also, if you feel this article has been of good value to you, please share it with your friends so that they can learn something too.