The ultimate guide to buying bitcoin starts here.
How To Buy Bitcoin
The most popular digital currency climbed to its highest level of almost $18,000 per BTC last December 15, according to Business Insider. This latest development in the cryptocurrency world will appear encouraging to investors. If you want to invest in the asset, learn how to buy Bitcoin correctly and avoid problems in the future. Take time to read the following steps:
- Find out the advantages and disadvantages of all payment systems. Bank transfers provide reasonable fees although the process takes longer. Credit cards facilitate quick purchases with exorbitant prices.
- Look for the best portals to buy Bitcoin online. Choose at least ten prominent and secure cryptocurrency exchanges listed on the worldwide web. Review each according to payment method.
- Figure out the confirmation process carefully. Exchanges will verify your location and identification. Prepare all required documents for validation of your account to avoid unnecessary delays.
- See to it the exchange conforms to regulatory standards.
- Choose the best cryptocurrency wallet for safekeeping your Bitcoin. Features and fees vary so Conduct a diligent assessment of each prospect before making a final decision.
For residents of the United States, Anti-Money Laundering (AML) legislation as well as Know your Customer (KYC) policies cover the purchase of Bitcoins. You need to submit a valid ID for verification before the initial transaction. Coinbase and Circle, the two most significant venture-financed Bitcoin corporations in the USA conduct authentication procedures that last for several days. With these two digital exchanges, you can buy Bitcoin instantly online and look forward to securing transactions.
Aside from these sites, you can also check out Localbitcoins which operates like Craigslist where traders meet to buy or sell coins within the country. Exchange rates favor vendors although buyers prefer Localbitcoins since it does not require an identification confirmation process. Another option is the Bitcoin Automated Teller Machine (ATM) situated in convenient areas. Just proceed to the nearest vending machine where an electronic device will scan your driver's license before you insert some cash to get coins or allow transfer to your crypto wallet.
Where to Buy Bitcoin
Your next question could be: Where can I buy Bitcoin? Look for reputable sources. You can buy Bitcoin with the credit card from exchanges like Coinbase (USA) and Coinmama (globally). However, expect higher processing fees and higher possibility of fraud. Investors who want to purchase BTC by volume must find a reliable platform and exchange the local currency before transferring the coins to a hardware wallet. You can buy Bitcoin with a debit card as well, but banks also charge high rates.
Several factors will influence your search for an ideal Bitcoin exchange. Compare the facility's rates to the cryptocurrency price index to determine the most reasonable figure. If you pay with a credit card, standard fees range between three and 10 percent. Most bank deposits come free. Purchasing large amounts of Bitcoin take longer with verification lasting for one week before delivery.
Purchasing limits usually differ depending on the level of identity confirmation. Take Coinbase as an example. The facility allows regular consumers a maximum daily purchase of $1,000 worth of coins. On the other hand, verified customers can get as high as $50,000 for one day. Exchanges provide information regarding its policies and practices. Fees also vary. Majority of brokers impose a flat fee of 41 for a single transaction. Companies with order books opt for high-volume trading and charge between 0.25 and 0.50 percent per trade.
The law requires all exchanges accepting credit/debit cards and bank remittances to secure the user's identities. If you want to maintain anonymity, purchase coins using cash at Person-to-Person (P2P) enterprises such as LocalBitcoins or any crypto ATMs. If possible, look for regulated exchanges that publish information related to compliance on their websites. Refrain from doing business with companies that fail to provide information regarding controls.
Wher can you buy bitcoin?
Pretty much anywhere these days, but your choice will depend on your own needs for security and anonymity.
Buying Bitcoin Instantly
Consumers will always look for a convenient method to get their virtual currencies without any hassles.
You have a variety of options to purchase the top cryptocurrency instantly. CNBC.com (October 2017) published an article about Coinbase CEO, and co-founder Brian Armstrong allows the instant purchase of BTC, ETH, and LTC worth $25, 000 from bank accounts in the US. Immediate purchase through credit cards can become prohibitive since card companies get a 9% payment for processing, partner integration, and cost of business.
Buy Using A Credit Card
- Create a Coinbase Account
- Go through their ID verification process
- Proceed to payment method section and choose credit card
- Wait for the two transactions from the exchange on your card ($1.01 – $1.99)
- Enter these amounts under the payment page of Coinbase which will signal your card’s authentication.
You can now start buying and transferring coins to your wallet. Keep in mind this facility charges 3.99% transaction fee that seems reasonable compared to other similar service providers in the market.
Coinbase began in 2012 and currently supports 32 countries including the USA. It exchanges Bitcoin, Litecoin, and Ethereum. The company claimed a total of US$20 billion in transactions a few years ago and facilitated around US$15 billion during the first six months alone of 2017. In 2016, Coinbase established the Global Digital Asset Exchange (GDAX) which caters to investors engaging in high-volume trading.
A Tech Crunch report published last August disclosed that this web-based firm raided $100 million with a valuation of $16 billion in the midst of sudden growth. This particular digital exchange offers a combination of mobile wallet, insurance coverage for the digital currencies kept on its servers and offline repository. The company supports the following traditional legal tender:
- USD (United States Dollar)
- GBP (UK Sterling Pount)
- CAD (Canadian Dollar)
- AUD (Australian Dollar)
- SGD (Singapore Dollar)
Coinbase charges a fixed fee of one percent for one purchase but does not impose fees for deposits and withdrawals of virtual currencies. It boasts of a well-run interface that applies to both amateur traders and faster transactions making it popular with many vendors and buyers.
The Circle platform supports only debit cards in the meantime, but approval depends on the buyer's level of verification which typically reaches $3, 000 weekly. Circle supports cards issued in the United States alone. Aside from the first two facilities, CEX.io allows instant Bitcoin purchases provided you create an account and finish the photo confirmation before including a payment method. It takes approximately one-half hour to check your account. You will receive funds straight away on the same card if you decide to sell the coins.
The Merkle provides the following valuable information. The 247 Exchange supports credit and debit cards, cash deposits, wire transfers, and instant money remittances. Approvals depend on the customer's location. Like Circle and Coinbase, all buyers must complete verification only for the initial transaction. Fees depend on payment methods.
LibertyX also deals with clients in the USA. You must sign up through the facility's website or mobile application. After finishing the process, you can buy as much as $1,000 (BTC) daily. Consumers can pay cash and conclude transactions within a few minutes, but only a limited number of cities and states provide said service.
LocalBitcoins connect sellers and buyers directly without any broker managing your finances. The facility supports PayPal, cash, and PaySafeCard, a straightforward and protected prepaid method that permits online payments without the need for credit card or bank account details.
Buying Bitcoin Locally
Coinbase remains the first preference for purchasing BTC locally, but http://bitcoindaily.org/buy-bitcoin-online/in-the-united-states/ recommends Gemini.com, one of the latest ventures of Tyler and Cameron Winklevoss. The twins, advocates of the Bitcoin environment put in many years to develop this exchange that targets Wall Street investors who intend to procure Bitcoins in the USA. You can choose Automated Clearing House (ACH) payments or wire transfers for depositing USD and order the cryptocurrency at your selected entry price. The P2P marketplace allows you to purchase coins from other merchants and only the company. Gemini.com offers lower rates compared to Coinbase and prioritizes high-volume institutional clients.
According to Buy Bitcoin Worldwide, BitQuick will link investors with vendors who want cash for their digital currencies. It operates only in the United States. You can transact business with the seller for a fixed price. Deposit some money into the merchant's bank account and upload the receipt as proof of the deposit. Expect the delivery of coins within one to two hours. The exchange ensures one of the quickest methods ways of buying BTC and the most physically secure compared to other cash payment approaches. Buyers pay directly to bank tellers. However, sellers charge two percent fees for cash transactions with prices fluctuating (higher or lower) than the Bitcoin market price.
Buying Cheap Bitcoin
The word "cheap" implies a relative connotation because the price of BTC continually changes with swings taking place now and then. Choose an exchange that maintains significant volume referring to the number of coins sold and purchased on a daily basis. High volume implies a lot of trading going on, and you will probably get the right Bitcoin price.
At Coin Market Cap, users can see a listing of digital exchanges (about 100) that indicates the market cap, price, volume (24 hours), circulating supply, change (24 hours), and price graph (seven days). The Pair Column displays BTC/USD meaning the provider suggests a market for the cryptocurrency traded for USD. Many exchanges currently sell significant currencies like EUR, KRW, and JPY.
All exchanges require clients to accomplish a Know your Customer form for validation. The KYC process ensures that unscrupulous individuals or crime syndicates will not misuse bank or exchange services to stay away from money laundering. You must provide your complete name and address as well as photo ID issued by the government. After certification, you must send the payment usually using bank transfers. Place your order after sending the money to the company.
Buying Bitcoin from the Most Reliable Exchange
How will you distinguish a reliable Bitcoin exchange? The Bitcoin Money Blog published an article that mentioned the proliferation of digital transactions as well as other sources such as the Blockchain platform, Coinbase, Local Bitcoins, Circle, and many others. Customers must look for the most reliable company. Your decision will depend on many factors such as reputation of the service provider, security of your cryptocurrencies, and fees. Besides, transferring funds to a crypto exchange requires a laborious process.
Browse through reliable Bitcoin sites as the task remains complicated particularly in the United States with regards to the amount of cryptocurrency you can purchase. A customer-friendly exchange will gladly provide a user-friendly and straightforward system in buying and paying. Examine the company's liquidity and some clients.
Tech Radar News in a published article last September told advised consumers to remain cautious in looking for a digital facility for their Bitcoin transactions. Study possible concerns along with downsides in opening an online account. Unlike the traditional banking institutions and stock trading, the majority of governments do not regulate cryptocurrency trading even as stakeholders look forward to changes sooner or later. Look for virtual currencies (out of more than 4, 000) that exchanges support. Second, check the country that hosts the BTC exchange. In individual states, regulation remains lenient while other nations maintain their stringent position. Consider the difference in time zones, costs of long distance deals, and language obstacles. Keep your mind on the transaction fees because these businesses have one motive specifically to generate profits. As users, you must look for a facility that charges the lowest cost.
Do not forget security. Deal with exchanges that enforce strict security measures which must include 2FA or Two-factor Authentication, Email or Short Messaging Service (SMS) alerts, coded messages, and stringent crypto wallet monitoring. You can use smartphone applications to access and keep track of your finances.
Other than Coinbase and Gemini, you can try Changelly which supports not only Bitcoin but Monero, Bytecoin, Dash, and DigitalNote. Go for this exchange in case you prefer less popular virtual tender. Changelly emanated from the widely held MinerGate, a mining platform that provides access to a combined pool across multiple operating systems (OS) including Android, Linux, Mac, and Microsoft Windows. For its part, Changelly concentrates on transactions between various virtual currencies and allow users to buy crypto money with USD or EUR. The exchange joined the market only last year charging 0.5% for every transaction.
Consumers consider Kraken as among the most dependable exchanges although the digital provider experienced relentless Ulcer Index (UI) trading engine problems. The technical indicator determines drawbacks in depth as well as a period of price drops. The UI goes up in value as the price veers away from the latest high and declines if the price increases to new peaks. Hence, many reviewers encourage buyers to avoid Kraken for the time being.
As an exchange, the company exemplifies consistency, high security, a certain degree of legal compliance, and highly developed types of order such as stop-loss referring to order you place with brokers to sell securities upon reaching a specific price. It means to limit losses for investors through protection. Kraken started operations in 2011 with principal headquarters at San Francisco (California).
Picking the most Reliable Exchange is a must!
Make sure you stay educated on the rules associated with various online exchanges before you decide to make a huge deposite. Make sure you never keep your coins on an exchange unless you're attempting an exchange or you're going to initiate a trade.
Purchase Bitcoin In Secret (Anonymously)
If you wish to but this cryptocurrency incognito, you have the option to buy offline (not connected to the Internet) and meet the seller of Bitcoin in person. In this case, proceed to LocalBitcoins, a website that matches buyers with merchants. You can finalize the deal and get your coins after paying the seller. Some vendors sell their coins online, but you need to remit the funds through bank wire. Prices will always depend on the trader although the amount turns out more expensive than transactions that occur in digital exchanges.
Final Words for Bitcoin Investors
Take the necessary precautionary measures in buying this controversial but very lucrative electronic currency. Purchasing coins using cash generate very low risks. If you choose to trade offline, select a public meeting place to reduce the probability of scams and theft. Utilize an escrow service such as Bit Quick or LocalBitcoins if you plan to get the BTC through cash deposits to ascertain the dealer will send the Bitcoin after you send the payment.
At the same time, understand the benefits as well as drawbacks. You can easily purchase a small amount of the cryptocurrency with fewer hazards. The arrangement stays confidential since the customer will not share any private information which other methods require. The use of cash also leads to prompt trades minus the laborious verification.
Of course, cash deals also entail downsides. For one, you will find it hard to procure massive amounts with paper notes and cash deposits. On the other hand, Bitcoin ATMs impose an absolute ceiling and also require confirmation of your identity if you buy more than the cap. Knowing all the plus factors and adverse effects, you can now go over the different options. You will undoubtedly want a safe, convenient, and pleasant experience.