Buy Bitcoin with a credit card, cash, or a bank transfer.
So you have finally decided to invest some money in Bitcoin and you are asking yourself what is the best way to buy cryptocurrency.
First – get a Bitcoin wallet!
You can store Bitcoin on a hardware wallet, a mobile phone wallet, a desktop, or a web wallet. Most wallets are multicurrency – that means you can use them for a variety of Coins and Tokens.
How do I choose a wallet that suits me best?
As mentioned, there are many types of wallets. You as the user should choose the wallet that best suits your needs, but also the one that you are comfortable with.
Some people are technology-oriented and some aren’t, some put an emphasis on interface and UI and some on security. Some will prefer a thin wallet in features and some will want a wallet that includes as many features as possible.
Two important questions you have to ask yourself before you choose a wallet is what amount of money you are planning to store and how often do you plan on using your wallet – send and receive coins.
A hardware wallet is suitable for storing large amounts for a long period of time. The mobile wallet fits small amounts and daily use. A desktop wallet is probably not suitable for frequently daily use. So these two questions will help you decide.
And of course, you can always combine different wallets. Store a large amount in a hardware wallet and transfer small amounts for daily use to a mobile wallet.
Bitcoin Web wallets
Web Wallets are very convenient but are not the safest because your private keys are stored by a third party on a remote computer. The managers of the service have access to your funds at any time.
Bitcoin Desktop wallet
With a desktop Wallet, your private keys are kept only by you. But they still have a major drawback and that is the fact that they are connected to the internet so Theoretically, they can be hacked.
Mobile Phone Bitcoin Wallets
The same goes for a Mobile Wallet, your private keys are kept only by you. But they still can be lost or hacked. You can still find hot wallets for mobile with a high level of security.
There is a larger selection of Android wallets for historical reasons that are directly related to Apple. Here are some popular wallets for Android and iOS.
Bitcoin Wallet BRD
BRD, Formerly BreadWallet, is recommended for novice users who are not always interested in features such as charts and trading coins from with in the app. BRD supports a fairly large variety of coins and Fiats. BRD does not support hardware wallets, such as Ledger or Terzor, but for the novice user this is not a major drawback.
Supported currencies: Bitcoin / Bitcoin Cash / Ethereum / ERC-20 Tokens
Operating Systems: Android / iOS
Electrum bitcoin wallet
Electrum is one of the oldest players ( launched in 2011) and only supports Bitcoin. Unlike modern wallets with countless features, Electrom’s clean interface is the essence of simplicity. It’s a wallet with a high level of security. It is suitable for a beginner and advanced user due to its ability to connect to hardware wallets, such as Ledger or Tzorz.
Supported currencies: Bitcoin
Operating Systems: Android
Edge bitcoin wallet
Edge Wallet, Formerly Airbitz, launched in 2018. It is a feature rich wallet but very convenient to use due to a designed and intuitive interface. You can purchase and sell coins from within the app. There is integration with several exchanges which allows you to exchange coins that are already stored in the wallet.
Supported currencies: Bitcoin / Alts / ERC-20 Tokens
Operating Systems: Android / iOS
Bitcoin Hardware Wallets
It is strongly recommended to use a hardware wallet. Hardware Bitcoin wallets are the safest wallets available.
Ledger and TREZOR are currently the finest hardware wallets on the market, and both support nearly two dozen cryptocurrencies. They can also connect to a desktop computer and to your smartphone.
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TREZOR (launched in August 2014) was the first Bitcoin hardware wallet that offered secure cold storage plus the ability to spend coins with the convenience of a hot wallet.
if you want to learn even more about Bitcoin wallets read our 2020 guide to Bitcoin wallets.
Buying Bitcoin with a credit card
Buying Bitcoin with a credit card or debit card became a simpler process with time, and more exchanges are adopting that payment option.
Today almost all exchanges have a KYC policy (know your customer), so you’ll be providing some personal information and proof of identification. Some exchanges serve clients around the world and some are limited to a specific country or region of the world. Most big exchanges fees range between 5% 6.5%.
Here you can find a step-by-step guide on how to buy Bitcoins on Coinmama.com, one of the oldest services that made it possible to buy bitcoins using a credit card.
The processing time on Coinmama varies depending on workload, but usually, it takes a couple of hours.
And here you can find a list of exchanges where you can buy bitcoin using your credit card.
Buying Bitcoin with cash
There are a lot of good reasons to buy crypto with cash money. It’s a private process, while most exchanges require you to verify your identity. You don’t have to wait for bank transfers, or for a verification process.
You can buy Bitcoin using cash from other people you may know or contacted using dedicated platforms. This kind of trade is called F2F trade (face-to-face). You can use dedicated groups on Telegram or Facebook, or you can use an online or an offline marketplace.
P2P – Online marketplace
On a P2P (a person-to-person) bitcoin trading sites (or App) you can locate people near you, or even from different countries, that want to exchange local currency into Bitcoin. You can negotiate sellers; choose the rate, payment method and the overall terms of the deal.
Here are some major players:
LocalBitcoins – Global
On LocalBitcoins you can buy bitcoins with cash or cash deposit. the service is private and charge a flat 1% fee for each purchase. Read LocalBitcoins full review.
BitQuick – USA
This is another service that connects you with sellers who want to sell Bitcoin for cash. BitQuick is only available in the United States and offer 2% fee for buyers. Read BitQuick full review.
LibertyX – United States, Canada, Germany + 5 more
LibertyX service lets you buy bitcoin with cash at a number of retail stores in the United States. however, You’ll have to verify your identity before buying. 1.5% fee plus store fee. Start buying Bitcoin with LibertyX.
Buying Bitcoin using an ATM
You can also buy Bitcoins with cash using an ATM (automatic teller machines).
Bitcoin ATM is one of the fastest ways to buy (and sell) bitcoins, depending on the machine type. You can complete the process in minutes or even seconds. Read Bitcoin ATMs 2020 guide
Almost all ATMs have the same basic process:
- You scan the QR code of your Bitcoin address.
- You feed banknotes into the machine.
- You click Send and wait for the Bitcoin to appear on your wallet address.
Using a Bitcoin ATM is without a doubt a very easy way to buy bitcoins, but not a cheap one. The average ATM charges a fee of 5-10%. that is the price of privacy since most don’t require verification.
here are two leading sites that can help you locate a Bitcoin ATM near your location:
CoinATMRadar, a website that compares more than 3500 ATMs worldwide. The ATMs on CoinATMRadar are displayed on a map, Each one with its own features. With CoinATMRadar you can Locate bitcoin ATMs closest to you + directions, find out ATM fees, limits, Buy/Sell, Credit card, and more. Read the full review.
Buying bitcoins with a wire transfer
Buying bitcoins with a bank transfer or a SEPA transfer does not allow any kind of anonymity. however, a lot of people, mostly those who want to transfer large sums to exchanges or other parties, prefer to use a wire transfer. it is maybe the most trusted method, with relatively low fees, depending on the exchange rate.
CEX.io exchange, a trusted Bitcoin exchange that accepts bank transfers using ACH in the USA or SEPA transfer for EU. It was established in 2013 in London and service is available worldwide.
If you are from the Eurozone click here for buying Bitcoin with a wire transfer on BitPanda exchange.
another European exchange but one that is available worldwide is Bitstamp. It’s operating since 2011 and serves large financial institutions.
Another option is Coinbase, estimated to be the world’s biggest Bitcoin broker with 33 countries supported.
And last but not least is Kraken, the world’s largest euro Bitcoin exchange offering international bank transfer, SEPA transfer, and Interac.
Thanks for reading. Please share any comments or questions you have with us.
Crypto for all!