Should I Buy Bitcoin?
Bitcoin is the pioneer of cryptocurrencies with a promising future predicted by many. Mainstream investors are getting in on the Bitcoin act, the excitement is trickling into the masses and the number of products and services you can buy with Bitcoin is increasing. Headlines like, buy a car with Bitcoin or buy a house with Bitcoin, once considered rhetoric, are now becoming reality.
Bitcoin is a volatile currency. Subsequently, the price of Bitcoin is prone to fluctuate, something that makes it both enticing to investors and a caution to others. More mainstream payment methods are being proffered to buy and sell Bitcoin from a growing diversity of platforms and since its inception in 2009, there is no denying the rise in Bitcoin’s value.
Where to Buy Bitcoin?
The main places to buy Bitcoin online are through a broker or via an exchange. Perhaps you have seen offers of ‘buy Bitcoin with kraken’ or ‘buy Bitcoin with Bistamp’ on your internet travels. These are exchanges that allow you to both buy and sell Bitcoin while brokers act as an intermediary.
There is a huge variety of platforms to purchase crypto currencies and the list is growing. You can buy Bitcoin with PayPal and you can even buy bitcoin with your Android and other smartphones. We will explore the options and provide step-by-step details of how to begin to buy with Bitcoin on some of the most reputable platforms.
How do I Buy Bitcoins?
The number of ways to buy Bitcoin is growing. We have detailed some of the most popular and emerging methods to buy Bitcoin below.
Through an Exchange or Broker
Exchanges are a traditional ‘go to’ for those wondering how to buy Bitcoin as they allow users to change fiat money into crypto easily, offer a wide variety of crypto coins and most have a decent level of liquidity.
Brokers can often access Bitcoin more easily as exchanges can experience delays, e.g. longer ID verification processes. Although there is a premium to pay for brokers, they can buy and sell at a fixed price which can result in the best way to buy Bitcoin.
Also, brokers are often more open to different payment options and are considered the best way to buy Bitcoins with a credit card or debit card by some.
Below are the platforms we recommend:
- eToro is a social trading site where you can buy Bitcoin CFDs and copy other traders, ideal if you are new to trading crypto or trading in general as described in our eToro review
- Bitfinex is a large volume crypto currency exchange based in Hong Kong where traders can buy bitcoin in USD. Margin trading, a large variety of order types and currency pairs all feature on this all-singing platform
- Binance is a large exchange with low fees and a high range of different trading pairs. As can be seen in our Binance review, it keeps on top of its game and is an established site where you can buy bitcoin securely
- Paxful offers a great variety of payment methods, ideal for newcomers who want to buy bitcoin with credit cards, visa or other familiar payment methods
- Coinbase is one of the largest, if not the largest, Bitcoin exchanges. It has a welcoming user interface and its ‘instant buy’ feature, described in our Coinbase reviewallows you to buy bitcoin instantly with debit cards and bank transfer. At this time, you cannot buy bitcoin with paypal here
Using CFDs (Contract for Difference) on eToro, a social trading network, is a simple and popular way to buy and sell Bitcoin. A CFD is an ‘agreement between an investor and a broker to pay each other the difference in price between a price of an asset (in this case Bitcoin) at the start of a contract and the price when the trade is closed. There is no ownership of an asset, which means you buy Bitcoin ‘value’.
Your investment follows the same trajectory as Bitcoin itself, but you are invested in a contract that offers flexibility and fast trading. It also means you can buy bitcoin online instantly with credit card if that is your preferred payment method.
How do I Buy Bitcoin on eToro
Step one – sign up as below and pick your country from the dropdown menu. *Please note your username will be public so be careful when using social media sites if you don’t want to be found in searches.
There is a demo/practice account for copy trading available on eToro. It is worthwhile practising on this, so you can get used to the functionality.
Step 2 – Complete your profile providing personal ID documentation e.g. passport and proof of address. You then need to make a deposit choosing one of the many payment options available.
Step 3 – Click on the blue ‘trade’ button in the top right hand of the screen. Another window will appear outlining your trade parameters.
Here, click ‘buy’ and the amount you want to trade. If you want to see how much you have been charged for this, go to your portfolio page.
Useful Tip for eToro Trading
Note that when you click the ‘sell’ button and press ‘open trade’, you are not selling the bitcoin you have, you are ‘shorting bitcoin’ meaning you are making a sell order (leveraging). So, if the value of Bitcoin goes down, you will still make a profit.
If you want to see just how easy it is to buy Bitcoin online with eToro then sign up to eToro and become a member today.
Buy Bitcoin Online – Verification Process
All reputable exchanges and brokers, however they operate, need to verify your personal identity and address details. This means supplying your personal identification and proof of address documents to prevent money laundering and other illegal practices.
How do I buy Bitcoin Anonymously?
The very nature of blockchain technology, the system on which Bitcoin operates, means that transactions are always traceable. So, if you are asking yourself ‘how do I buy bitcoin anonymously?’ Unfortunately, it simply isn’t possible.
If you wish to keep your financial matters private or prefer not to put your trust in big financial organisations, then two options below are considered the best way to buy Bitcoin anonymously:
- Buy Bitcoin from an ATM that doesn’t require you to go through the verification process. The machine, connected to the internet, allows users to change BTC and cash. Each machine is different and they charge a fee of around 5 – 11 %. Be aware that some machines may ask you to confirm your identity.
- Buy Bitcoin with a prepaid credit card. On some exchange sites, you can use this method of payment without having to verify your details. Similarly, you can buy Bitcoin with a Visa gift card to serve the same purpose. Bitpanda, Coinbase and Coinmama accept prepaid visa card payments.
Which Payment Methods Can You Use to Deposit?
In days of old, there were fewer ways to make a deposit to buy crypto currencies, to buy Bitcoin using PayPal was simply unheard of. But now you can buy Bitcoin direct using bank transfers, cash, debit or credit card and ATM machines.
If you want to find out how to buy Bitcoin from PayPal, you can use a site called Virwox. Here, you can put money from your PayPal directly into your account and continue to buy and sell on the exchange.
Other Ways to Buy Bitcoin
Yes, there is more than one best place to buy Bitcoins…
How to buy Bitcoin in person?
You can buy Bitcoin with cash if you prefer a traditional approach or if you want to buy Bitcoin fast. Firstly, find a seller locally who wants to sell coins. Make sure they are legitimate by checking their feedback history on the exchange you will be using. Deposit the cash into their account, take a copy of the receipt and upload this into your wallet. Money transfer companies like MoneyGram and Western Union are also used to buy Bitcoin with cash.
How to buy Bitcoin with cash at Walmart?
Don’t be mistaken here, if you are in the US, you cannot simply show up at a Walmart store and buy a Bitcoin like a pack of Doritos. But, you can buy and sell Bitcoin through Walmart-2- Walmart, a money transfer service. You will need to acquire a wallet, join an exchange and find a seller to buy Bitcoin from using Walmart-2-Walmart. Fees do apply.
How do I buy Bitcoin on eBay?
Yes. Input ‘Bitcoin’ in the search tab as you would do for any other eBay item. You can add these to your wallet straight from eBay when you have purchased.
Should I buy Bitcoin with an Amazon gift card?
Yes. Exchanges like Paxful where you buy bitcoin from other people, also allows you to redeem the value of your Amazon gift card by purchasing Bitcoins. This allows for a fast purchase in small denominations. Backpage is a similar market place that lets users buy Bitcoin with Skrill and Google Wallet.
Does it Matter Where I Live to Buy Bitcoin?
If you want to buy and sell Bitcoins from the country you are in, this is not an issue if that country has not banned trading or deemed it illegal. Different countries have different legal rules when it comes to buying Bitcoin. These rules are changing all the time. So, whether you want to buy Bitcoin online in Australia or if you want to buy Bitcoin online from India, this should not be a problem.
It is worth noting that if you buy Bitcoin in the UK, it is a quicker process to put down a deposit than other countries because restrictions do apply depending on where you are from. From some corners of the globe, the process can take a few days.
It is also worth being aware that trading accounts are in USD on the eToro platform, so you will need to buy Bitcoin online with USD. If you are buying Bitcoin online with Euro, or another currency then you will be charged a conversion fee.
Which Places Accept Bitcoin Payments?
The popularity of Bitcoin means that some retailers accept Bitcoin as a means of payment. For example, you can Buy Bitcoins with a credit card on reddit and you can also use it to buy services from:
- KFC Canada
Can I Profit from Bitcoin Mining?
Finally, bitcoin mining. Put simply, this is another way of profiting from Bitcoin that doesn’t involve a typical investment approach.
Bitcoin is built on the blockchain, a computer network that administers every transaction on it. ‘Miners’ are individuals who solve the mathematical equations for each transaction on the blockchain and they earn a commission from this.
If you want to become a miner, you will need to buy bitcoin mining hardware and buy a bitcoin mining rig (the system mining runs on). For a bitcoin miner like ASIC or to buy a used bitcoin miner, you can use eBay, Amazon or Alibaba. Note that set up costs, including electricity usage can be extensive.
Hopefully we have answered the question ‘should I buy bitcoin’ and with any luck, a few more! If you would like to know more about investing in bitcoin or the latest bitcoin news click here.