How to Buy Bitcoin
Bitcoin is an emerging digital currency. Last year bitcoin was still in its infancy, and now it seems that it is growing to be a more mature currency. The popularity of this virtual currency is constantly growing and every day we see more people joining this innovative industry. Bitcoin is bound to shake and disrupt the economic and financial traditional foundations and turn it into a more equal and democratic model.
The Bitcoin ecosystem is also increasing its agility and every day more and more business segments are starting to welcome this new currency. The movement’s evangelists are pushing hard for mainstream adoption — to turn Bitcoin into a currency rather than an asset or a financial tool and make the most of its unique functionalities.
Buying Bitcoin was until now a difficult process; however, currently buying bitcoin is fairly easy.
You can buy bitcoin through several ways:
- Localbitcoins physically ATM
- Credit card
- Bank transfer SEPA Wire
Buying Bitcoins physically
You can buy bitcoin from a friend or someone who agrees to meet with you and do the trade. This method is one of the oldest, but it can turn out to be pretty difficult to find the right person from to who buy. Luckily Localbitcoins can help you with that; Localbitcoins is a platform that helps users to sell and buy bitcoins. It is a bitcoin shopping service that allows users to try finding people near their local areas wanting to sell or buy bitcoins. With Localbitcoins users can agree to meet personally, or they can opt to use the escrow service provided by the Localbitcoins platform. It’s a very simple process, and it also lets you decide whether to pay with money, bank transfer or even credit card.
You can also buy bitcoin on an ATM. Bitcoin Tellers are becoming very popular, and it’s one of the securest, fastest and easiest way to buy bitcoin. The Bitcoin ATM industry is rapidly expanding, and you can already find lots of bitcoin ATM around the world. You can check coinmap.org to find a Bitcoin ATM within your reach.
Buying Bitcoins through Exchanges
Buying Bitcoin through an exchange is one of the most complicated methods of buying bitcoin since the user will need to deposit funds into his exchange account. Almost every exchange works very similarly except for those who don’t have FIAT markets. So you will need to find a trusted exchange that also deals with FIAT.
For now, we will advise you to stick with the most popular ones, like Kraken, Bitstamp, Bitfinex and BTC-e. Furthermore, when dealing with exchanges, it is wise to have all security measures activated and avoid having large funds stationed on your exchange accounts.
The usual process of buying bitcoins through an exchange requires you to fund your account with FIAT money. The problem is that most exchanges will require you to go through an ID verification process that can take several business days and in worst cases can take up to several weeks. After that, you will be able to buy and sell bitcoin easily. You will just need to set a buysell price and wait for your order to be filled.
Exchanges have the Bitcoin price updated in real time. The price depends on the market supply and demand and established between traders trying to buy or sell bitcoin for the best price.
Almost every exchange will accept SEPA and Wire Transfers, and some of them will let you buy bitcoin with your credit card. In this case, Cex.io will let you easily buy bitcoins with your credit card after you endured the verification process.
For the ID verification, exchanges usually request that you send them a copy of your national ID card or passport; a utility bill as proof of residence. Some of them also require your photo and a bunch of other documents.
Buying Bitcoins with Paypal
This method is probably the most expensive because of the high fees involved in the process, but it is also the fastest one!
You can open an account at the Virtual World Exchange (VirVoX) and fund it instantly with your Paypal. Then you will need to do some kind of workaround to buy some bitcoins – Once you have your VirVoX account funded you will need to trade your Fiat money for Second Life Linden virtual currency (SLL) and then exchange them for bitcoin. That’s why this process carries a lot of fees.
Besides Paypal, you can also fund your VirVoX account with many other standard methods such as Skrill, Sofort banking, Paysafecard, Ukash and OKPay, and Visa Mastercard. So, if you need to buy Bitcoin pretty fast without leaving your house, this may be well your best option!
Buying Bitcoin with your Credit Card
Besides buying Bitcoins with your credit card at VirVoX or Cex.io exchange, you can also buy them at Trucoin, CoinMama and Brawker.
- CoinMama uses Western Union to allow you to purchase Bitcoins through your credit card.
- Trucoin – Users can buy Bitcoin with credit and debit cards. Trucoin is properly licensed money service business.
- Brawker is a platform that lets you buy bitcoins in a whole different way. Users can buy bitcoins with Paypal or credit card on Brawker. Brawker a completely new service in which bitcoin buyers buy items at online merchants for people interested in paying with bitcoins. When the buyer receives the items you bought, you will receive the bitcoins that were held in escrow during the transaction.
Before feeling tempted to buy bitcoins just “around the corner”, we strongly recommend you to look for information and feedback from previous users and usual customers before you choose where to buy. You should always do your research and market analysis before coming to a final decision. To help with your search you can always reach for the bitcoin community through dedicated forums and specialized channels to find discussions and reviews about different companies and different services. If you have any doubts the community is pretty helpful and you are always welcome to join in.