Bitcoin is in the now news more times than before and it is the most known cryptocurrency in the world today. Many more people want to join the crypto-train every growing day with bitcoin.But not knowing there is more to just joining the crypto-train or buying or storing Bitcoin.
What do I need to know before buying Bitcoins
You don’t need to be told that when you plan on storing money or making exchanges, the first thing you need to think of is where do they go to or where do you store them. You need either a bank or a wallet. Make sure you have a Bitcoin wallet or click HERE to read about “setting up a Bitcoin wallet”.
How to buy Bitcoin
There are different ways of buying ways buying Bitcoin if you have or have never thought of it. Apart from any personal arrangement you might have with the person you’r buying from, these are the methods of buying Bitcoin :
Cash. though being the most vulnerable method of either being robbed or scammed. Is preferred for those who wants to operate with Bitcoins anonymously. A cash deposit also helps you access your Bitcoin instantly while still remaining totally anonymous. Some major flaws with cash exchanges is that you may always have to pay higher rates.(at about a rate more than 15% above market rate).
You can use services like LocalBitcoins, Wall of Coins or BitQuick to purchase Bitcoins with cash. You can also make use of any Bitcoin ATM in your local area if available.
Bank Transfer :
Bank transfers considered the most preferred way of buying or receiving a large amount of Bitcoin which also charge lower fees for each transfer completed. Time consumption is the main considered flaw in optioning for bank transfer which takes about 4-5 business days in some cases. And also, ID verification is needed.
Some services that allow Bitcoins operations with Bank transfers are : Coinbase, BitPanda, and Gemini.
Debit or Credit cards :
Most people in the world today have either a debit or a credit card. And are familiar on how to use them making it the most popular method of buying Bitcoins. Gaining access to your bitcoins is easier working with cards. Unlike bank transfer, operations with cards charge higher fees. You also need to prove your ID to buy Bitcoins with your card in that process tie your ID to your Bitcoins.
Some exchanges for purchasing Bitcoins with debit/credit cards are available only in some areas. Some services that can be used for global exchanges are : CEX and Coinmama.
Officially, PayPal does not let you buy bitcoins. Making it extremely difficult to access Bitcoins with PayPal. Nevertheless, there are few ways to get around this problem. But you lose more money by exchanging your money twice. You have to buy digital items with PayPal, then sell those items for Bitcoins. Making it a double exchange process.
The charge fees are quite similar to those of cash transfer( at about 10 or 12%) ..