Best Ways to Purchase Bitcoins
by Helga Danova | Feb 10, 2015 | Crypto News
Purchasing Bitcoins Through Various Means
In the world where technology is dominant, where present and the future closely depends on it, it brings a solution to some everyday problems, or at least improves people’s lives significantly. With the introduction of Bitcoin to the tech community in 2009 and its ongoing adoption by all groups of people throughout the world since then, it remains important to keep informing the general population about the cryptocurrency and its seemingly inscrutable ways. While the tech side of the virtual currency remains the domain of the IT-savvy folk, the facet of its usage should be accessible for everyone who lives in the present-day brave new world.
Multiple Ways to Purchase Bitcoins
The foremost issue related to the usage of crypto coins is their acquisition. When looking at the most popular QA media on the web, the question no. 1 which arises is, “Where can I purchase Bitcoins?” So, while the Bitcoin-related forums’ members will gladly provide an answer to this question, we will try to elaborate on this matter as well by presenting multiple options to people’s choice. In truth, it is simpler to purchase Bitcoin than it might seem. The range of ways to buy crypto vary – one may obtain it with cash, credit or debit card, via bank transfer or through one of the popular payment systems, or use a Bitcoin ATM.
PayPal’s not for Bitcoin Purchase
Many people globally are used to making online payments through PayPal because it is assumingly simple. However, different sources state that purchasing Bitcoins with this method is both unlikely and hard to implement. First of all, just like Bitcoin, PP is an online payment system that claims to be working fast and with a minimum of hassle. Therefore, it looks like the two are competitors – so why should one incorporate another? Besides, one of the main features of BTC transactions is that they are irreversible, and the abovementioned payment system is known for easiness of chargebacks, which makes it risky for the seller. Fortunately, other options look more appealing.
Acquiring Crypto from People
It would be only logical if a peer-to-peer network, which is Bitcoin, offered an opportunity of buying peer-to-peer as well. This can be done through a website called LocalBitcoins. It operates like a marketplace where users are posting their offers and requests. Everyone can buy their crypto using almost any payment method – it only depends on what option the seller chooses. Of course, it is not always safe to have peer-to-peer financial interactions of this sort, but sometimes it is the best option available. For this purpose, to minimise the risk, LB has a Bitcoin escrow service at users’ disposal. The website also provides a possibility to purchase Bitcoin with cash. Information on it is provided below.
Purchasing BTC for Cash
The most widely used payment method of all times has been cash. Surely, Bitcoin purchase can be performed using physical money too. For a start, one could simply arrange a meeting with a member of a community to purchase Bitcoin for fiat. There have been occasions where users of the Bitcointalk forum or Reddit met offline to exchange physical currency for the virtual one. Using LocalBitcoins for this matter is also popular among cryptocurrency users. We would, however, discourage trusting random people and advice on using more reliable services which at least provide certain guarantees against fraud or theft.
Using ATMs to purchase Bitcoin
In the world, there were 321 accounted Bitcoin ATMs by the end of 2014. Most of them are concentrated in the North America and Europe. The biggest worldwide provider is currently Lamassu with a share of ⅓ of all the existing ATMs. Payment machines are divided between those which allow purchasing Bitcoins for cash and those which accept BTC and trade it for fiat. The latter are equipped by QR readers and are believed to be more expensive in production. With time passing, venues ranging from cafes to office centres, such as the Overstock building, are installing the machines. This serves spreading the idea of cryptocurrencies among the customers and visitors.
Getting the Coins through Exchanges
Of all the methods of Bitcoin purchase, exchanges play the most significant role. They are the main players in the crypto market, as well as the key distributors of Bitcoin and her sister coins. One of their major advantages is the ability for everyone to perform a quick withdrawal of one’s newly-acquired BTC to any Bitcoin address. The exchange itself serves as a wallet, and a person can use it for any types of payments. While it is recommended to store BTC in a wallet rather than on exchange, it is still good to have such an option at hand.
Another great thing about exchanges is that, apart from purchasing Bitcoins, they offer an option of trading. This way, those who have some experience in the activity, can benefit from the volatility of the cryptocurrencies and earn as the price rises and drops.
Buying Bitcoins with CEX.IO Exchange
CEX.IO proved to be one of the most reliable Bitcoin exchanges over the time of its existence. The platform offers an opportunity to purchase Bitcoin with a payment card or via bank transfer. Everybody can buy crypto on the exchange for USD and EUR directly, with no conversion fees applied. More to that, enabling the option of purchasing Bitcoins via SEPA transfer has allowed to decrease the transaction fees for EU users. After making the first Bitcoin purchase, anyone can choose whether to withdraw the coins to a personal wallet, or to keep trading on the platform where a range of trading pairs will allow them benefit from the price fluctuations.
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