Where and how to buy Bitcoin?
Bitcoin is the first successful cryptocurrency that has won the ground as a safe investment that can bring significant profit. BTCMEX will guide you on where and how to get, store and trade Bitcoin.
Introduction to Bitcoin
Bitcoin (₿), also BTC or XBT, is the first successful cryptocurrency that was introduced by Satoshi Nakamoto in late 2008 as a peer-to-peer digital currency that eliminates third party from the transaction. Bitcoin is decentralized, which means there’s no central bank behind the asset and it can be sent from user to user directly.
Its underlying technology is the blockchain. Transactions on the blockchain are verified by network nodes through cryptography and recorded in public distributed ledgers. Blockchain technology gained popularity recently and found its implementation in many industries not only related to finance due to its reliability and wide functionality.
Bitcoins are created as a reward for a process called mining. The Bitcoin total supply limit is ₿21,000,000. The idea behind the first cryptocurrency is to create a self-sustaining system like a physical commodity, which drives its value from its finite supply.
Like traditional currencies, such as the US dollar, Bitcoin has value relative to other currencies and physical goods. Bitcoin can be exchanged for other fiat or cryptocurrency, products or services. Due to the volatility cryptocurrency can be traded on derivatives exchanges. For example, BTCMEX is a Bitcoin Perpetual Contract trading platform, which allows making a profit even when the market price is going down, as traders can open both Long and Short positions on the exchange.
Here are some advantages of investing in Bitcoin:
- Greater liquidity in comparison to other cryptocurrencies
- Wide acceptance as a payment method
- User anonymity and privacy
- Easy and fast international transactions
- Lower transaction fees
- Independence from political agents and creators
- Build-in scarcity
- Price volatility perfect for speculation on the market
More than 30,000 BTC believers are already trading on BTCMEX!
Where to buy Bitcoin?
Cryptocurrency newcomers might seem confusing and complicated to get their first Bitcoin, but in fact, there are various and reliable ways to get the currency within several clicks. Mainstream acceptance of cryptocurrency made it simple and fast to get it nowadays. In this section, BTCMEX explains where and how to buy Bitcoin.
If you are not a miner, there are lots of options that offer to buy Bitcoin with fiat money today, they are gift cards, ATM, local Traders, brokers, and exchanges. Before buying any cryptocurrency it’s important to answer the following questions to choose the best way and place to buy. They are:
- How much private information do you want to disclose?
- How do you want to pay?
- Where do you live?
Taking into account these few factors can indeed simplify your Bitcoin acquisition significantly.
One of the easiest and the most private method to get your first BTC is Bitcoin ATMs. These are machines where you can buy Bitcoin with cash. Some of the ATMs are independent while in countries like Swiss, Ukraine or Spain they just use an existing net of ATMs, like that from banks or train stations.
Another method to get Bitcoin easily is to buy a gift card or a Bitcoin voucher, then visit a website where you can use the code from your card to get cryptocurrency. Shops and kiosks that sell such vouchers are very common in Austria, Mexico, and South Korea.
Direct Commercial Exchanges/Brokers
These vendors function just like foreign exchange offices, but digital. The brokers buy Bitcoin from the exchanges and resell it to customers. You can visit a website, choose the suitable means of payment, pay and get Bitcoin. The platform sets the price. For most of these platforms, you need to set up a crypto wallet in advance, while some, for example, Coinbase, and Circle, give you the option to save and spend Bitcoin with a wallet they provide.
Since they accept a great variety of payment channels, even credit cards, and PayPal, such platforms might be the fastest and easiest way for new enthusiasts to buy their first Bitcoin. The fees of direct commercial exchanges vary between 1% – 5%. eToro is a popular platform that accepts both credit card and PayPal payments.
P2P (peer-to-peer) marketplaces are designed for Bitcoin buyers and sellers to meet and trade with each other directly. The biggest advantage of such platforms is extremely low fees (0%-1%), the spread depends on the market liquidity and the payment channel.
The process is very easy. All you need to do is set a price and wait until someone sells you Bitcoin. This enables you to buy relatively large amounts of Bitcoin at relatively low prices.
The most famous P2P-market is LocalBitcoins. Bitcoin.de, the largest P2P-market in the Eurozone offers a good liquidity and the option to easily exchange Euro to Bitcoin. One more famous space is Bitsquare, a completely decentralized peer-to-peer market, which functions as a software that connects people.
Exchanges offer you to buy Bitcoin with fiat or other coins. Some platforms offer crypto derivatives trading at the same time. If you want to buy Bitcoin regularly at good prices and trade with Bitcoin you‘ll most likely choose an exchange. On such platforms, users place orders to buy or sell Bitcoin, and the trading engine of the exchange matches orders from buyers and sellers and processes trades. Usually, fees and the spread are low.
On exchanges like BigOne or XT.com, you can trade fiat currency to Bitcoin, or coin to coin. Exchanges, like BTCMEX, give an opportunity to profit from high-leveraged margin trading, offering Bitcoin derivatives. Explore Bitcoin Perpetual Contract.
How to buy Bitcoin?
There are also several payment methods available to purchase Bitcoin. You can choose a place to buy cryptocurrencies depending on how you are willing to pay for it. Here is the list of widely accepted means of payments for your first Bitcoin.
1. Credit or Debit Card
Regular credit or debit cards are the most common way to pay for cryptocurrency online. Most of the people are familiar with using them for online purchases, and the delivery of products purchased, or in our case Bitcoin, is instant, once the verification process is completed.
Although it’s fast and easy, using a credit or a debit card is not a private way to get Bitcoin. High fees are also applied to online transactions. A few places to buy cryptocurrency with a credit or debit card are Coinbase, Coinmama, CEX.IO, BitPanda.
2. Bank Account or Bank Transfer
A bank transfer is suitable for buying a large amount of Bitcoin. The fees are also lower in comparison to using a credit card. Such transactions usually require ID verifications and might take up to 5 days to proceed.
Some of the best places to buy Bitcoin with the bank account are Coinbase (supporting USA, Canada, Singapore, and Europe), BitPanda (Europe), and Gemini (USA, Canada).
PayPal doesn’t provide an option to buy Bitcoin directly. Here’s a way how to do it. They offer to buy other digital items that can be converted to Bitcoin. It’s convenient if you already have a PayPal balance, otherwise, your credit card will be used, which will apply high transaction fees.
Cash deposit is always the most private and the fastest way to get a cryptocurrency. In most cases, no personal information is required and the Bitcoin transaction can be made within several hours or less.
There are Bitcoin ATMs all around the world, yet no guarantee there’s one near you! Coin ATM Radar is a website to find one nearby. The ATM is very easy to use. You simply insert cash in the machine and get Bitcoin sent to your wallet instantly.
Privacy comes at a cost. All the exchanges apply high fees for accepting cash. Some of the places to buy Bitcoin instantly with cash are LocalBitcoins, BitQuick, or Wall of Coins.
Where to store Bitcoin?
To buy Bitcoin you essentially need to know where you can keep cryptocurrency. A wallet is basically the equivalent of a bank account. It’s a secure cloud storage that allows you to receive Bitcoins and other coins, store them, and then send them to others.
Wallets contain private keys – secret codes that allow you to spend your coins. In reality, it’s not coins that need to be stored and secured, but the private keys that give you access to them.
To trade Bitcoin you need to deposit it to the exchange’s wallet. You can give your account’s wallet address directly, while purchasing Bitcoin, or get a private wallet first. There are Hot and Cold cryptocurrency wallets.
Hot wallets are wallets that run on Internet-connected devices like a computer, mobile phone, or tablet. Hot wallets are the easiest way to store small amounts of Bitcoin. Spending and receiving payments is easy and fast. Some hot wallets allow access to funds across multiple devices.
There are online Bitcoin wallets, like GreenAddress, the wallets that run on Android (Samourai Wallet, Mycelium, Edge, Bitcoin Wallet), IOS wallets (DropBit, breadwallet, Edge), and desktop wallets. Like Electrum.
Cold wallet is hardware, a device that stores your Bitcoins offline and out of reach from hackers and malware. Cold wallets are safer and suitable to store a large amount of cryptocurrency. Ledger USB, Trezor and KeepKey are the most popular devices at the market right now. BTCMEX currently uses a Multi-Signature Cold Wallet (multisig) – the most secure storage available – to keep the user’s assets safe.
When is the right time to buy Bitcoin?
Bitcoin is traded 24/7 and due to its high volatility, the price changes every second. You can check the price of Bitcoin trading platforms, that have charts with the price history. You can see the Last Traded Price on the BTCMEX Trading page.
How long does it take to buy Bitcoin?
A Bitcoin network transaction takes less than 10 minutes to confirm, so it’s a problem with the payment system that might take a long time to wait. A bank transfer in the US, for example, can take up to 5 working days. A credit card confirmation should not take more than to 2 hours.
Can I Buy Bitcoin partially?
Yes, of course! Each Bitcoin can be split into 100,000,000 pieces. Each unit, or 0.00000001 Bitcoin, is called a Satoshi.
Most exchanges let you buy as little as $5 worth of Bitcoins at a time.
What is KYC?
KYC stands for Know Your Customer – laws that require exchanges to record the real-world identity of their clients. That’s why you might be asked to upload a photo of your ID document.
Can anyone buy Bitcoin?
Bitcoin requires no permission to use or buy.
Is Bitcoin legal?
Bitcoin is legal in nearly every country. Only a few countries have actually banned the use of cryptocurrency. Before you buy, make sure you double-check the legal status of Bitcoin in your country.
Can I buy Bitcoin anonymously?
Bitcoin is not anonymous but rather pseudonymous. All Bitcoin transactions are public but it is not always known the real identity behind any Bitcoin address.
Do I need to pay taxes on Bitcoin?
In most countries, you will need to pay some kind of tax if you buy Bitcoins, sell them, and make a profit from trading. In the US you must do this on every transaction. Be sure to check with your country’s tax authorities to make sure you are paying all the required taxes on your Bitcoin use.
Can I sell Bitcoin?
Yes, of course! Most exchanges that let you buy Bitcoin also let you sell it.
Should I buy or mine Bitcoin?
A long time ago anyone could mine Bitcoin on a computer at home. Today, mining became very time and energy-consuming, only specialized computer hardware is powerful enough to do this.
Buying Bitcoin is easy and fast.
Do I need a Bitcoin account before buying?
You need to get a Bitcoin wallet first. The majority of exchanges provide their wallet address with your registration on the platform.
How to check if I received a Bitcoin payment?
You can check the transaction status on a Bitcoin block explorer like Smartbit.
What can I do with my Bitcoin?
The world is moving towards cryptocurrency mass adoption. Check the full guide to places that accept Bitcoin payments for goods and services here, or register on BTCMEX and start trading Bitcoin today!
How to trade on BTCMEX?
Here you can find the complete Trading Guide and the detailed information about using BTCMEX.
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