The Best Way To Buy Bitcoin

Curious about the best way to buy Bitcoin? Read on as we describe three of our favourite methods for getting hold of this revolutionary financial technology, either as an investment or as an entrance into the exciting world of crypto trading. We’ve picked these three for different reasons, as you’ll see, but like with any advice in this industry, it’s imperative to do your own research.

The best way to buy Bitcoin for beginners and non-technical individuals

Don’t worry if you’ve never bought a Bitcoin, traded an Ethereum, put Litecoin in a wallet, staked some Tron, or sold Polkadot on a peak. Really, don’t worry, we all have to start somewhere, and taking that first brave step into the crypto world is not as scary as you think, at least not as scary as it could be, and that’s thanks to amazing services like Coinbase.

Coinbase is a brokerage, which means their primary service is to sell cryptocurrencies to those who want to buy them. All you have to do is sign up, choose a payment method, buy the cryptocurrency you want, and it will arrive safely in your wallet.

Signing up is super simple, but you will need a few documents. The first document is required to prove your identity, so either a passport, driver’s license, or a state ID card will do. The second document is to prove your residential address, so this can be a bank statement, utility bill, or government-issued letter. These documents, plus some personal details, will allow you to open an account.

Users can choose to either buy crypto directly their with debit or credit card or, if they are feeling patient, they can do a bank transfer and buy the crypto later on using the transferred funds. This is probably the method that could be safely described as ‘the best way to buy Bitcoin’, as it gives you time to think about your actions, rather than being pressured by a market event. Rushing into crypto is a good way to lose your investment, as it’s such a volatile market.

Remember, whilst Coinbase has never been hacked, that doesn’t mean your wallet is perfectly safe on their servers. We recommend downloading an external wallet for additional security. Here are some recommendations.

The best way to buy Bitcoin for those who want to trade cryptocurrencies

Perhaps you don’t see yourself as a long-term investor, purchasing crypto in the hopes that over the months and years it will accrue value and give you a nice nest egg. Rather, you want more of a transactional relationship with cryptocurrency, to follow the market movements, dive into the data, and surf the charts. Well, if trading is the game you’re looking to play, you will be best placed using the world’s biggest and best cryptocurrency exchange: Binance.

Binance has pretty strong market dominance and thanks to that power, they can offer super-low trading fees (0.1%), the best liquidity (fast trades), more trading pairs than virtually any other exchange (BTC/ETH is a trading pair, for example, so they offer more combinations like this), and amazing products, like their own decentralized exchange (DEX), a P2P marketplace, and leveraged trading. All of these terms might mean nothing to you now, but once you get trading, they’ll soon become relevant and useful.

Signing up for Binance follows the same pattern as Coinbase, as these ID and residence requirements are part of KYC (Know Your Customer) checks. The purpose of these is to weed out any illegal, fraudulent, or money-laundering activities.

Like Coinbase, you can choose to deposit money from your bank account or make an instant purchase via card. The first option is significantly cheaper, by the way. Once you have money in your account, you are able to trade with fiat-to-crypto pairs, such as BTC/USD (Bitcoin and US Dollar) or ETH/EUR (Ethereum and Euros). This is how you turn your fiat currency into cryptocurrency and begin your trading career (good luck, by the way!).

The best way to buy Bitcoin for those who don’t want to use a card or bank account

The first two options we presented both encourage users to make purchases of crypto via bank transfer or credit card, with bank wire being an additional option. On Paxful, it’s a completely different story. Their mission is to run a brokerage with as many payment methods as possible, so if you’re unbanked or don’t want to use your card, there’s bound to be a method for you.

Right at this moment, there are 374 different payment methods:

• 9 bank transfers (SEPA, ACH, FPS, Interac etc)
• 169 online wallets (Abra, Google Pay, N26, Neteller, PayPal, Revolut etc)
• 124 gift cards (Amazon, eBay, iTunes, Google Play, Steam etc)
• 18 cash payments (Western Union, MoneyGram, Cash Deposit etc)
• 20 debit or credit cards (Walmart, Bluebird, GreenDot etc)
• 30 digital currencies (Tether, Ethereum, Litecoin etc)
• 4 goods and services (Cars, Gold, Game Items)

So, if you fancy trading in your car for some Bitcoin, they make it possible. Did you get an iTunes gift card from your uncle for Christmas? You can convert that into Bitcoin too. Want to pay with cash? Where there’s a will there’s a way, but note, each method has vastly different transfer fees, yet Paxful doesn’t take a commission.

Once your purchase has been completed, your Bitcoin will go to your Paxful wallet, which currently has more than 2 million happy customers. You could be next…

Have we provided you with a route to getting some Bitcoin?

Getting started in cryptocurrency should be exciting and laden with potential, but it also comes with risks, fees, and you should never be willing to risk money that you aren’t prepared to lose. We always advise you to do your research. If you’d like to discuss Bitcoin purchases more, feel free to join our Telegram group.

Image source: Depositphotos