How To Buy Bitcoin
How to Buy Bitcoin With Cash…
or, Credit Card, PayPal, Bank Transfer, or any other payment methodology and currency you desire (well almost).
Bitcoin is the first ever cryptocurrency invented and remains by far the most sought after cryptocurrency to date. Bitcoin is known as the digital gold standard in the cryptocurrency network and it is the pioneer of Blockchain Technology that made digital money possible.
It is the first ever decentralized peer-to-peer network powered by its users without any central authority or middleman which means, no unnecessary costs are included in the digital money transaction.
Even though the price of a single bitcoin has exceeded the price of an ounce of gold. It has been very volatile and its price has fluctuated wildly, – adding to its appeal as speculative investment opportunity.
However you don’t have to buy a whole coin. You can buy a portion of a coin 0.0000001 for example.
The problem is that for many, actually buying Bitcoins is not so simple, as most banks and financial services agencies won’t allow you to buy them directly.
But once you have some (Bitcoin) you can then buy other cryptocurrencies and take advantage of the many opportunities and benefits that cryptocurrencies offer. (For more on this see my other post on Cryptocurrencies)
There are Lots of Exchanges to Buy and Sell On
There are lots of exchanges and wallets and platforms to buy, sell, trade and exchange cryptocurrencies. (I have not tried or researched them all).
However, I have researched and tried quite a few and as a result I have settled on the ones that I believe give you the most flexibility and freedom to buy quickly and simply and that I personally use, because they work for me.
So, l will tell you, based on my research and experience how to open an account and how to buy bitcoin using cash, credit card, PayPal and numerous other payment methods and with almost any type of currency.
However first you will need to open some accounts, (don’t worry they are free and pretty easy to do). It may also appear to be backwards but I will explain why as we work our way through the process.
How To Open An Account
Step One: Opening a Trading Account (to Buy and Sell)
Understand that there are 3 types of cryptocurrency exchanges:
- Trading Platforms
These are websites that connect the buyers and sellers and they charge a small fee for a completed transaction.
- Direct Trading
These platforms offer direct person to person exchange. You may exchange with individuals from different countries as well as in different currencies. Direct trading does not necessarily adhere to the current market price, as the individuals trading may set their own exchange rate. This is where you puchase Bitcoins.
These are websites that anyone can visit to purchase cryptocurrencies. However, the price is set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers and they require a lot more information and verification of ID to set up.
We are going to be using two types of exchanges, the Trading Platform and the Direct Trading. We will not be using Brokers.
The reason I have selected and like this particular platform is because it has many of the more 1000+ cryptocurrencies that are available (Not all of them) but enough of the cryptocurrencies that I like to trade are on this exchange.
It’s is not the only exchange that you could use there are plenty of others and you are free to use whatever trading platform you wish. But for now I will walk you through using this one. However it does not have a mobile app. So, you will need to use your computer, not your phone for trading.
Founded in 2014, Bittrex is a US based Cryptocurrency exchange. It allows you to instantly convert your Bitcoins to other cryptocurrencies (called Altcoins) Bittrex is also one of the more secure Cryptocurrency Exchanges.
The Trading Platform – How to Register for a Bittrex Account.
Log into https://bittrex.com click on the ‘Get Started‘ tab and can you sign up via email. (see below right)
- Enter your Email and Password.
- Tick on “I Agree to Terms & Services
- Click on Sign Up Button.
- Next, Verify your Email Address.
Now that you’ve successfully created your account, its time to make your account safe and secure, so that only you can have access to it.
How To Secure Your Account
- Click on the Setting Icon at the Top Right Corner.
- Click on the Two-Factor
- Next Scan the Barcode or Enter the Authentication Code on the Google Authenticator App.
- Now Enter the Password and the 6 Digit Code from Google Authenticator App and Enable the Two-Factor Verification
To Verify Your Account:
The Verification Process is similar to the other Cryptocurrency Exchanges and there are 3 Levels of Verification. Depending upon how much trading or buying you want to do.
- In Basic Verification, you have to submit your basic details like Name, Birth Date & Address. Daily Limit: 1 BTC
- In the Phone Verification, you have to verify your Mobile Number via OTP from Bittrex. Daily Limit is increased to: 3 BTC
- In Enhanced Verification, you have to upload some personal documents and selfies (see the list below). Daily Limit increases to: 100 BTC
For enhanced verification, you need to do the following:
- Take a fresh selfie, ensure nothing is blocking a full view of your face
- Do not use the same image from your identification documents
- Do not use a professional profile picture
- Don’t manipulate the image of your identification in any way. This includes adding watermarks or blacking out certain information
- Do not crop the image of your ID – such as the edges.
Trading Platform (to Buy and Sell)
Ok, so now that you have opened your Bittrix Trading Platform (to buy and sell). You are ready to convert Bitcoin into the cryptocurrencies that you want to purchase. However, you need to acquire some Bitcoin first to deposit into your account in order to exchange them for other ‘altcoins’ (cryptocurrencies).
* Note: you cannot purchase Bitcoin from this exchange, using regular money. This is a ‘trading exchange’ so you need to get some Bitcoins into your account before you can begin trading. – which we will show you next. But First…
How To Deposit Bitcoin In Your Bittrix Account?
- Click on “Wallets” Tab.
- Now search for the BTC (Bitcoin) because you need to load Bitcoins into your trading account. Then Click on “+” icon and it will open.
- Next, Copy the Bitcoin Address** (a line of code) and paste it into the location you want to send the *Bitcoins from.
* NOTE: The Bitcoins can be purchased using a Direct Trading platform (which we will explore soon).
But we needed to set up the trading account first and you need to know where to get this line of code from – the address to send your Bitcoins to.
Now that you have your trading account set up for the buying and selling of Cryptocurrencies we are read for the next step;
This Is Where You Actually Buy Your Bitcoins
Step Two: Opening a Trading Account – Direct Trading
I have found a very useful site called LocalBitcoin.com which is a person-to-person Bitcoin trading site. This is where you can purchase Bitcoins or part of a bitcoin using any type of ‘traditional currency’ or payment method you wish.
“This is the key element in the purchassing of Bitcoin using cash, Credit Card, PayPal, Bank Transfer, or any other payment methodology or choice of currency”.
|You can link directly to LocalBitcoin.com here.|
The company is one of the oldest exchanges in the industry, founded in 2012 and operates in 248 countries and 13,774 cities, and is based in Helsinki, Finland. They have an escrow service in order to help establish trust between the parties, and a conflict-resolution service.
LocalBitcoin.com respects the anonymous nature of Bitcoin, so there is no mandatory I.D. verification, and it doesn’t require any personal details. Email address is the only thing needed for signup. Sign up takes about 20-30 seconds, and the website is very fast. While the exchange doesn’t require any personal information, some sellers may request identification in order to proceed with a trade.
How It Works
The exchange is not a typical brokerage business model, instead LocalBitcoin.com is a person-to-person bitcoin trading site. Where, people from different countries will exchange local currency into Bitcoins.
Sellers post advertisements where they specify exchange rate and payment methods for buying or selling bitcoins. You reply to these advertisements and agree on how to pay for bitcoins with either cash, bank transfer, PayPal, credit card, online banking or whatever method you agree to.
When it comes to traditional currencies, users are free to trade in any currency they wish, which means that if there’s someone willing to accept your local currency, or preferred method of payment, you can buy Bitcoins. So, if you are starting off and only want to buy part coins or use a certain method of payment then it’s a perfect platform.
The sellers are free to determine their own BTC price, as they want to cover the transaction fees and make a profit by selling smaller units. They do this by asking for a higher BTC exchange rate. Meaning that the price asked may vary from seller to seller.
Users are also advised to exercise caution when trading on Local Bitcoins because it’s possible to get scammed. After all, the deal is made between individuals and its much like trading on Ebay or Craig’s’ List.
Also, some of the larger traders may refuse to sell cryptocurrency or limit the size of transactions, for a new user who has no history or any positive feedback. In that case, a new user should make a few minor trades with less-known sellers in order to get a positive ‘activity rating’ in order to be accepted, by the more trusted traders.
Ready to Start
Then once your transaction is completed, your Bitcoins are placed in your LocalBitcoins.com web wallet by the seller. Where you can hold them, pay directly for any purchases requiring Bitcoins, or you can send them to another exchange.
** This is where you need to paste (the line of code) ‘the Bitcoin Address’ for the location you want to send the Bitcoins to. In this case that will be your Bittrix Trading Account.
The Process For Buying Bitcoin
Step 1 Register an account with LocalBitcoins. You get a free online bitcoin wallet.
Step 2 Go to the main page and in the search box (see below) fill in the form by using the drop down boxes, selecting the amount you want to purchase, the currency you want to buy with, and choose a payment method.
So, once you have found a seller and agreed to a transaction. You are all set to go. Once your transaction is completed, your Bitcoins are placed in your LocalBitcoin.com web wallet by the seller. Once they are received, you can hold them or you can send them to another exchange or pay directly for any purchases requiring Bitcoins.
You can find your wallet in the top right-hand corner.
So, congratulations you have now purchased some Bitcoins!
It’s best to do many small transactions first to build up your reputation and get familiar with how everything works before you attempt to find the sharpest price and start accumulating Bitcoins.
Local Bitcoins will become your ‘Purchasing Account’ (Step Two: – Direct Trading) and where you will temporarily hold your Bitcoins when you purchase them.
From there you can now transfer them to your Trading Account (Step One: Trading Account) which is your Bittrix Account. Which is where you get the ‘line of code’ called the ‘the Bitcoin Address’ and you then paste that code into the LocalBitcoin ‘receiving bitcoin address’ so LocalBitcoin knows where to send them.
Once you open your wallet and select SEND Bitcoins (see below) You can paste in the Bitcoin address code into the ‘Receiving bitcoin address’
Once you have pasted in the code and you have entered the amount you wish to send. You are now ready to send them to Bittrix. Click the blue CONTINUE icon.
Then You will get a screen that looks like this one (below) letting you know that you have successfully sent Bitcoins to the ‘address’.
Relax – Don’t Panic
Now don’t panic if after you have sent them that you can’t immediately find it in your Bittrix Account because it can take up to ten minutes for them to show up. It will appear first in the ‘pending deposit’ column before finding its way into the available balance column.
In the image above, the pending deposit is 0.3018689 and soon it will move over into the available balance (currently has 0.00066595) Once you see it in the ‘available balance’ column (total becomes 0.03085284) you now have your Bitcoin deposited into your Bittrix account and you are ready to start buying (trading) cryptocurrencies.
A Quick Review
- Log into your Bittrix account and, ‘Click the Blue +’ on the BTC to get the Bitcoin Address.
- Then Copy and Paste that code (address) into your ‘LocalBitcoin wallet’ and select the SEND Bitcoins icon. Because Local Bitcoin needs to know where to send the Bitcoins.
So again, go to Bittrix first (to get the address) then, go to LocalBitCoin (to paste the address), then send it and then go back to Bittrix (it can take a few minutes to show up) to see the deposit.
Then once you have some Bitcoins (BTC) deposited into your Bittrix account you are now ready to buy other cryptocurrencies or hold them.
How to Use Bittrex to Buy and Sell
The buying and selling of other cryptocurrencies is transacted in Bitcoin (BTC). You select the ‘Market’ Tab (either one) at the top left of the main page and new page will open. You now locate and select the Cryptocurrency you want to purchase on the Bittrix Platform. You click the Symbol and a page will display current prices and a graph of real time trading history.
Buying via Bittrix
The number of Bitcoins (BTC) available is displayed in the top line. In this example, we will be buying 2.0 units of TenX Pay Tokens and it shows the price (in BTC) is 0.001270. The Total which is different, includes the exchange fee and is how much you are going to pay.
*Note: Make sure the available BTC amount is not exceeded.
The RED icons ‘Limit’ and ‘Good till Cancelled’ can be left at the default settings.
To select the ‘Price’ you want to pay for the TenX Pay Tokens. Click on the ‘blue’ Price icon’ and it will open and you will see what your options are. You can offer to buy at the ‘bid price’ or the ‘last sale’ price, or at the ‘Ask price’.
If you select to pay the ‘Ask Price’ your ‘offer’ will be accepted quickly and you will get your coins almost straight away. Either of the other options may take some time to conclude.
Once you have selected your options you are ready to place your “order”. Once you are happy with your offer, the amount and the price. To get the process started, you will need to click the blue “+ Buy TenX Pay Token” icon.
Once initiated, your “order” will go on to the list of bids waiting to be fulfilled. It may take a few minutes or it could take many hours before your order is filled, as buyers and sellers are matched up with their respective (bids) ‘offer’ and ‘ask’ orders.
Once your order has been filled you will find the coins deposited into you Bittrix wallet (you can click on the Wallet Tab) that was automatically set up when you opened your account. Once again they will first appear in the ‘pending deposit’ and then it will move over into the ‘available balance’.
Selling via Bittrix
If you were selling, you would complete the same procedure in the Sell Side and click the blue “– Sell TenX Pay Token” icon. You will be paid in Bitcoins (BTC).
An Overview Of the Process
An overview of the Bittrix Trading Process is;
- Click on The Bitcoin Market Tab at the Top of the page.
- When you get list of Cryptocurrencies (you can also search for the Cryptocurrency) which you want to buy from Bittrex.
- Select the Cryptocurrency and the trend Graph will be Loaded. Scroll down and you can see the section for Buy and Sell Cryptocurrencies.
- Next, Enter the Units (Number of Coins) you want to purchase and check the total price which includes the Fees that will be Charged
- Select the Price via the Bid Option or use the ‘Ask Price’ if you want to get them faster and at the current rate.
- Click on the Buy Button and complete the process of buying.
- To Track your Orders, Click on, ‘Orders Report‘ Tab.
What I like about Bittrex is that it supports multiple cryptocurrencies and has an inbuilt wallet. The fees are reasonable at 0.25%, for every Trade on Bittrex. There is also an option to enable a 2FA (2 Factor Authentication) for increased security which I would highly recommend you do.
Security and Privacy
It’s important to protect your digital currency because in a sense they are a non physical, invisible form of wealth and could easily get lost in cryber space. Which is the reason you need a wallet to store the information necessary in order to transact business with bitcoins. A ‘wallet‘ in this sense is something that “stores the digital credentials” for your digital currency and is a place to hold and store your Bitcoins.
This digital information can be held in several places.
- At the exchange (online)
- On your computer
- Or on a hardware device (off line)
Highest Security Option
If you want really high security and never have to worry about the exchange being hacked (which has happened on some exchanges) or your computer being compromised, then a Hardware Wallet is the most robust form of security you can have for your cryptocurrency.
The way the hardware wallets achieve maximum security is by storing your private key and signing your Bitcoin transactions offline so anyone trying to “hack” your wallet remotely won’t be able to do so. A Hardware Wallet allows you to send and receive Bitcoins on any computer, even if the computer is compromised, your transaction will still go through unimpeded.
Most hardware wallets use a second screen/device to verify actions within your wallet such as signing in. Then even if a hacker gains control over your computer, he can’t do anything since he also requires access to the physical device that needs to be connected to your computer as well as your access codes.
One such device I have found is TREZOR which is very easy and intuitive to use. It is an ideal Bitcoin hardware wallet and suitable for beginners and professional alike.
TREZOR is a single purpose device which allows you to make secure Bitcoin transactions. With TREZOR, transactions are completely safe and its use is intuitive. It is an ideal Bitcoin hardware wallet and has excellent security and privacy settings. The web interface is easy to use and the device comes with a built-in screen.
It is a very highly secure and practical device, even though the cost may seem a little pricey at $99. It’s really an inexpensive investment for a very high level of financial security.
|For More about the TREZOR Hardware Security Wallet click here|
A Good Time to Get an Education
While it seems like a good time to invest in Cryptocurrency (There are more options than just Bitcoin, such as Ethereum, Litecoin and Ripple, to name just a few). In fact there are more than 1,000 digital currencies in existence.
But knowing where to start and how to invest in these new assets could be an overwhelming and daunting task if you don’t know what you are doing.
Which why it is probably a good time to get educated about Cryptocurrencies and learn how you can invest and profit from them.
The Cryptovator’s Cryptocurrency Course. This is a high quality video training course with easy to follow content from an experience cryptocurrency mentor and will provide you with valuable knowledge on altcoins and getting started in trading cryptocurrencies for profit as well as being a great introduction to Bitcoin and blockchain technology.
Here’s what the course covers;
- INTRODUCTION TO BITCOIN – Understand bitcoin and be able to buy bitcoin to use as a medium or secure as a store of value.
- CRYPTOGRAPHY AND BLOCKCHAIN – Understand how cryptography lead to the creation of bitcoin and how disruptive blockchain technology works
- BITCOIN MINING – Learn how bitcoin and other cryptocurrencies are created and be able to mine your own cryptocurrency.
- COINS AND TOKENS – Learn the fundamentals of a range of cryptocurrencies that are part of amazing projects.
- TRADING – Learn how to buy and trade cryptocurrencies and make short term and long term gains.
- FINTECH – Learn about finanicial technology and entire eco-systems are being created using blockchain technology of exchange.
|Click here to see more about This Cryptocurrency Video Training Course|
If You Want To Calculate Before You Buy Bitcoin
If you know what you are doing and you have a Bitcoin address and you want to buy Bitcoin with US Dollars, you can calculate and use the form below:
Money as we know it, is going through a fundamental change. What’s important to understand (and this is crucial), cryptocurrencies don’t need validation from the banks or the government to thrive. This due to their decentralized nature, so they will succeed regardless of whether they receive approval of the governments or participation by the banks.
We’re moving away from the traditional form of money was backed by nothing more than our trust and faith in our government. To money that’s requires nothing more than trusting the data and the blockchain thats created by thousands of independent computers verifying the validity of each transaction. We are moving into the future.
If you enjoyed this article “How to Buy Bitcoin” please feel free to socially share and leave a comment below.
And if you do I will reward you with a free copy of my book; “Why Invest in Cryptocurrency and How to Get Started”
So what are you waiting for?
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