Every day we are receiving a lot of questions about how to buy, sell or work with cryptocurrencies and blockchain assets. Therefore, we have decided to create our own knowledge base where everyone will be able to find out answers to any questions related to the cryptocurrency sphere. In this guide, we will walk through the process of buying cryptocurrencies.
An entry point to the cryptocurrency world in 99% is Bitcoin (BTC) as the most liquid asset on the market. All other crypto assets may be exchanged for BTC. Below you will see the most popular methods of buying Bitcoin using fiat money.
It’s one of the oldest p2p marketplaces to buy bitcoins (or ethereum, respectively). Simple UI, a wide range of payment methods (even meeting in person is possible) are making this website very useful for those who are new to cryptocurrency.
- Sign Up on the Localbitcoins.com and verify your email address.
- Log In to your account
- You will see a search form where you have to choose a payment option.
- Then, you will see all available sellers accepting selected payment option.
- Choose the most suitable for you in terms of the exchange rate (NOTE: Each of sellers has min-max amount per deal. You will see details in each particular offer)
- When you found out the best rate, click “Buy Now”. You will be redirected to the deal’s page.
- On the deal’s page, you will see notes on how to contact with the seller and the entire process of payment. Now, you’re ready to open the deal.
- Follow instructions described on the deal’s page and click confirm payment when money is sent. When seller will receive your payment, Bitcoins will be automatically transferred to your wallet within Localbitcoins platform.
- Now, go to “Wallet” tab where you will be able to transfer your bitcoins to the desired address. (NOTE: If you do not have any other wallets, you may store your BTC on Localbitcoins (do it only for small amounts), but do not forget to enable 2FA and other security features.)
It’s the fastest way to buy BTC using a credit card. It is very convenient for newcomers and all you need to do is just to register your own Bitcoin wallet at any of the service providers. We are recommending blockchain.info as one of the most reputable online wallets.
When you will finish with sign up on blockchain.info copy your BTC wallet address and paste it to the form on changelly.com
Then enter your CC details and in 10-15 minutes you will receive BTC to your blockchain.info wallet.
NOTE: It is the fastest and very convenient way to buy but its slightly expensive. You will be charged around 10% fees.
This website is pretty similar to the localbitcoins.com You also need to create an account and choose payment the most suitable payment option. Paxful provides an ability to buy with credit card, Amazon gift cards and 200+ more options, which made it extremely popular all around the world.
As before, the system is pretty similar to localbitcoins. More than 180 countries are allowed to buy BTC on Coinmama. Below you will see necessary steps to buy Bitcoin with a credit card:
- Create Your Coinmama Account
- Sign up and create your Coinmama account with just a few clicks. A confirmation link will be sent to your email at the end of the process.
- Get Verified for Bitcoin Purchase
You need to verify your account before you can buy BTC with credit or debit card. This involves the uploading of your passport, national ID or other documents based on your preferred level of verification. Once approved and cleared, you can buy Bitcoins for up to 15,000 USD with your credit/debit card.
- Place Your Bitcoin Order
Log in to the Coinmama account you created in Stage 1, enter the desired wallet address, fill out the form and buy Bitcoin instantly.
These 4 websites will be more than enough to buy your first Bitcoin. Later on, when you will become a part of the community, you will find out the most suitable option for you, but at the entry point, you don’t need more resources to buy BTC. All of the mentioned resources are well-established businesses with verified experience and reputation.
Now, when you have bought your first BTC, we should talk about storing it safely. There are several ways to store your crypto assets at the moment:
- Hardware wallet. It is offline and small flash drive which stores your bitcoins offline and out of reach for hackers and malware. You may prefer this option if you have a significant amount of BTC or other crypto assets (you should determine significant amount on your own). There are following brands available: Ledger Nano; Trezor and KeepKey.
- Exchanges. If you are actively trading, you will need some BTC on a daily basis, so it is a good practice when you store most part of your BTC on the hardware wallet and only small part on exchanges where you trade. Remember, that exchanges might be hacked and your money will be stolen, so do not use this method as a preferred.
- Paper Wallet. It is just a piece of paper where the private and public keys of your bitcoin address are printed. It is very great for the long-term storage of bitcoin (away from fire and water, obviously), or for the giving of bitcoin as a gift.
- Online wallets. They offer increased convenience – you may reach your bitcoin from any device if you have the right passwords. All are easy to set up and mostly come up in desktop and mobile version (sometimes as a mobile app). In this case, security may become an issue. Because your private keys stored on the cloud which may be hacked and funds stolen.
As you see there are many ways to buy and store Bitcoins and they are not limited to those, we’ve mentioned above. If you would like to know any specific method to buy cryptocurrency, leave us a comment and we’ll do our best to find out the solution.