How to Buy Bitcoins7/8/2020
Bitcoin is the world’s most popular and first cryptocurrency launched in 2009 by Satoshi Nakamoto. The primary aim was to establish decentralized digital money that operates using a peer-to-peer structure.
A cryptocurrency is a secured electronic payment system or virtual money that can be traded with the use of cryptography. Cryptography technology is a system of complicated arithmetic algorithms or codes.
Unlike fiat currencies, cryptocurrencies like Bitcoin aren’t under the control of any central authority or government. Thus, bitcoin transactions are performed directly between users without any intermediaries like banks.
For anonymous transactions, users make use of encrypted keys and this makes their transactions non-traceable. You can purchase bitcoin from any part of the globe.
Bitcoin and a few other top cryptocurrencies can be exchanged for physical money like the US dollar and euro. It is the most liquid among all cryptocurrencies and this means when you convert it, you lose little or none of its inherent value. Bitcoin prices are equally volatile and fluctuate a lot.
You need a digital wallet to store bitcoin and if you want to purchase a bitcoin, the first step is to decide on a suitable wallet for storing your crypto coin. A few crypto exchanges offer a free wallet. Some platforms that sell bitcoin expect you to already have a wallet before buying crypto/bitcoin.
Types of exchanges that sell Cryptocurrencies
There are two types of exchange where you can obtain Bitcoin:
Fiat to cryptocurrency exchanges
This type of exchange allows you to exchange bitcoin and other altcoins with cryptocurrencies with the use of physical currencies like the US dollar. They are commonly suitable for beginners.
Cryptocurrency to cryptocurrency exchanges
These types of exchange allow platform users to exchange one cryptocurrency for another. They are more suitable for veterans.
The first step you to obtaining a cryptocurrency like bitcoin is to download a bitcoin wallet. You’d be storing your bitcoin on the wallet until you’re ready to sell it or use it for the purchase of goods and services. You’d normally purchase your desired crypto including bitcoin by using a credit/debit card and through direct bank transfer (ACH).
Now, we’ve seen what bitcoin and cryptocurrencies are and how you can acquire one, let’s discuss a few top exchanges where you can obtain cryptos.
Top 10 places where you can purchase Bitcoin/Cryptos
There are currently many ways you can obtain crypto. Below is our list of top places to buy crypto/Bitcoin
Coinbase based in California is one of the most popular cryptocurrency exchanges globally. You can obtain a free wallet from the site. It equally serves as an exchange platform for cryptos. You can make a payment on Coinbase with the use of credit or debit cards, but you’ll pay a charge of 3.99 dollars.
Coinmama serves as both a crypto exchange and a digital wallet. You can easily purchase bitcoin from the site’s homepage in increments of 100 dollars. While majorities of crypto exchanges allow you to trade in an open market system, with Coinmama, you trade from the company holdings. Because the company is a registered financial service company in the US, it charges a bit higher fee compared to other platforms.
CEX is a UK cryptocurrency exchange that allows you to buy crypto using debit cards, credit cards, and direct bank transfer. The company charges a low fee and if you are paying with a credit card, your account gets instantly loaded. They practice Know your customer (KYC) system.
4. Bitcoin ATMs
A bitcoin ATM (BATM) is merely an ATM that allows you to purchase bitcoin. Similar tophysical money ATM, you insert your credit, debit card, or fiat currency to exchange crypto. With the machine, your crypto transactions remain anonymous, unlike other platforms where Know Your Customer’ (KYC) checks are in place. The downsides, however, are high fees of roughly 7 to 10% for a transaction.
5. Binance / Binance Jersey
Binance is one of the most popular crypto exchanges globally. UK users need to make their purchase using its branch, Binance Jersey. If you’re in the UK, you pay zero deposit and withdrawal fee and a 0.1% transaction fee.
Other popular bitcoin exchanges include:
10. Peer-to-peer (P2P) exchanges like Local Bitcoins
It is easy to decide a cryptocurrency to purchase but a bit complicated to choose and exchange and a wallet. Conduct your research before you settle on a final choice. Remember, Bitcoin and other cryptos are highly volatile. So, get some experience before you trade to stay safe.