How To Buy Bitcoin & Cryptocurrency
By Latest In Crypto on ALTCOIN MAGAZINE
So you’re interested in purchasing Bitcoin or other cryptocurrencies but don’t know how to purchase them? There is a lot of confusion in the mainstream community as many people do not know how to buy Bitcoin and cryptocurrency, but the methods are getting simpler and simpler and purchasing Bitcoin can be as simple as signing up for a mobile application.
Cryptocurrencies are mainly purchased on exchanges, which act as a digital marketplace, but can also be purchased in cash from retail brokers, other individuals, or ATMs.
You can pay for cryptocurrency in a variety of ways that depend on your method of purchase and where you live, but it is possible with cash, credit cards/debit cards, wire transfers, or other cryptocurrencies.
Set Up A Cryptocurrency Wallet
The first step in purchasing and owning cryptocurrencies is to set up a cryptocurrency wallet so you can receive and store digital assets. Cryptocurrency wallets come on different platforms with a variety of different features and are the equivalent of a bank account for fiat currencies as it provides you a personal account and management interface to send, receive, and store crypto.
Wallets can either be hot or cold wallets, and they are used to store your private keys which grant you access to your crypto assets. Anyone with access to your private keys can gain control of your assets, so choosing the right wallet is critical to safe use in this crypto ecosystem.
Please see our cryptocurrency wallet guide with in-depth wallet reviews to help you pick which wallet to use and why
Buying Cryptocurrency Online
Purchasing Cryptocurrency online is the most popular method of purchase and it is done via an exchange. You need to open an account on the exchange, and they will provide the digital marketplace where users can buy and sell cryptocurrency, transacting using fiat currencies or by alternative cryptocurrencies. The exchange usually acts as an intermediary between buyers and sellers of cryptocurrency, but can also work like a brokerage providing you digital assets directly for funds.
To transact through an exchange, users must first register with the exchange and go through respective identity verification processes to abide by worldwide Know-Your-Customer (KYC) regulations.
Once verification is successful users are able to transfer funds to their account and begin transactions.
Always remember to transfer your cryptocurrencies to a non-custodial wallet where only you hold the private keys. Cryptocurrencies purchased at exchanges will be held in the exchange’s wallet so please plan to move them to a secure location soon after purchase.
You can usually deposit money through a variety of options, and different exchanges will have different payment methods, including:
- Bank Transfer
- Wire Transfer
- Debit Card/Credit Card (You will often have to pay a premium for the convenience of debit card/credit card purchases)
- PayPal transfer
- Check Mailing
- Cash Delivery
Once the money is deposited, then you can transact via the exchange and the digital assets will be provided to your wallet.
Please see our Cryptocurrency Exchange Guide with in-depth exchange reviews on which exchange to use and why
Buying Cryptocurrency With Cash
If you prefer to purchase cryptocurrency with cash this is available as well, but it may be more difficult to organize or with higher fees.
Platforms such as LocalBitcoins provide a marketplace for you to locate other parties who are able to do peer-to-peer cash transactions. LocalBitcoins will act as a secure escrow service but you will personally need to verify the reputation of your other party.
Depending on where you live, you may have retail stores around you that provide cryptocurrency purchase services. For example, LibertyX can provide US users with a network of Bitcoin ATMs, cashiers, and kiosks. Coin ATM Radar is another service that can assist you in locating Bitcoin ATMs around your area.
Bitcoin purchasing services via cash deposit may also be available at bank branches near you, with WallofCoins, BitQuick, and PaxFul being good resources for finding these locations around your area.
