How to Buy Bitcoins

Author: 
Michael R.
Date: 
November 14, 2018
Read time: 
5 minutes
Bitcoin
Cryptocurrency
Blockchain

Over the past couple of years, everyone has been wondering how to buy Bitcoins. Bitcoin introduces a brand new investment class - cryptocurrency - and it has been making waves in the tech scene, on Wall Street, and now with citizens around the world. The magic behind Bitcoin and cryptocurrencies is the underlying technology, blockchain. Putting technical jargon aside, Bitcoin is meant to be digital cash. This means that the world can transact globally, anonymously and peer to peer, much like a physical cash transaction, but instead digitally over the internet.

 

Over the past couple of years, everyone has been wondering how to buy Bitcoins. Bitcoin introduces a brand new investment class - cryptocurrency - and it has been making waves in the tech scene, on Wall Street, and now with citizens around the world. The magic behind Bitcoin and cryptocurrencies is the underlying technology, blockchain. Putting technical jargon aside, Bitcoin is meant to be digital cash. This means that the world can transact globally, anonymously and peer to peer, much like a physical cash transaction, but instead digitally over the internet.

 

Why Does Everyone Want to Know How to Buy Bitcoin?

As mentioned, Bitcoin introduces digital cash for the first time. Transferring data globally, anonymously, with no central entity, such as a bank has never been accomplished before due to its technical hurdles. Without a central entity, we have never had a system for updating records of balances, tracking net worths for individuals. This is a bank’s job.

Blockchain technology introduces a decentralized global ledger for accomplishing what banks do when it comes to record keeping. The Bitcoin blockchain is a global ledger, network, and protocol which allows individuals to send Bitcoin to one another. There are people across the world running Bitcoin software on their computers, which automatically transfers and confirms transactions while updating a public ledger. All nodes in the system must agree on the current status of the ledger, this is called consensus.

Source: The Guardian Youtube Channel
 

Understanding how cryptocurrencies work is an intimidating task, but if you sum up all of this jargon, the implications mean that the world can transact globally with negligible fees. It is for this reason that people are rushing to figure out how to buy Bitcoin. Bitcoin’s price as an asset has skyrocketed due to its ever-increasing demand.
 

Interesting, Can you elaborate on the blockchain?

Sure, the blockchain at its core is a public ledger and protocol. I will briefly explain how the protocol works with an example. One day you buy a TV from me for 0.5 Bitcoin. Let’s explore what happens.

When you send me Bitcoin, it does not instantly deposit into my wallet or account. What literally happens is you broadcast the transaction (sending 0.5 BTC to me) to the network. Normally, you would request to wire money through a bank, then it can take a couple of days to hit your friend’s account. Instead of requesting it to the bank, you are requesting (broadcasting) your payment to the global Bitcoin network. The network sees your transaction, confirms it, then updates both balances in the public ledger. It is this ledger, commonly referred to as the blockchain, which is trusted globally as the current financial status for all Bitcoin holders.

How to buy bitcoin

To summarize, the main advantages to an automated system, like the blockchain are:

  • Cheaper Transactions
  • Faster Transactions
  • Global Transactions
  • More anonymous and private transactions

For these reasons, people are looking for how to buy Bitcoin and are enthusiastic about its future.

Understanding how to buy Bitcoin is just the first step. You will also want to understand which trading exchanges are trusted, how to use them, and how to buy other cryptocurrencies that may skyrocket in value.

Got it, so How Can I Buy Bitcoin?

There are many different ways to buy Bitcoin, which is partially why people are not sure of the best methods. Each method has its advantages and disadvantages which we will explain below.

How to buy bitcoin?

 

How to Buy Bitcoins with Cash

Buying Bitcoins with cash can be interpreted as doing it in person or by bank transfer online. To do it in person, there is localbitcoins.com, where you can find buyers and sellers within a defined geographical location. This may be safe in small amounts, but we advise being cautious with this route to avoid burglary. Please make sure to do this in a public space where you are safe; you are carrying cash after all. Additionally, be sure it is legal to do buy and sell Bitcoin like this in your jurisdiction.

The second and much safer way is through bank transfer. Using websites such as Coinbase.com, you can safely and legally purchase Bitcoin directly with your bank checking account. The advantage here is that the fees will be negligible, but you will need to wait a few business days before the Bitcoin arrives in your account. The rate at which you buy Bitcoin is locked in at the time you place the order, so future price fluctuations will not affect the amount you receive.
 

How to Buy Bitcoins with PayPal

This is an extremely common question. The trick here is that you cannot! PayPal does not allow you to load your account with Bitcoin, or directly buy Bitcoin from your account. There are services which can act as a middleman, essentially cashing out Bitcoin and depositing cash to your PayPal account, but we recommend avoiding these services. PayPal is not cryptocurrency friendly at this time. Most likely because they see it as a business threat, nothing legal.

How to buy bitcoin

The primary method we recommend is purchasing your Bitcoins with Coinbase. As mentioned above you can do it via bank transfer, which is the cheapest method, but certainly not the fastest.
 

How to Buy Bitcoins with a Credit Card

“How to buy Bitcoins with a credit card” is probably the most common questions of them all. You could have guessed it, but we recommend doing this with Coinbase. Coinbase is usable in many countries and is legally compliant in all of them. Credit cards are great because they enable you to buy Bitcoins instantaneously, but with added fees. The fees can add a few percents to your order, but if you want them now, then that is the cost. If Coinbase is not available in your country, then you can check out CEX.io as a trusted alternative.
 

Where Can I Learn to Buy Bitcoin?

While you can Google your questions, ask friends, ask on Twitter and gather snippets of information at a time, this may not be the most trusted and recommended way to do this. Additionally, once you own your Bitcoin, you will not understand how to properly send them to other accounts, trade with it on exchanges, or safely back them up for added security. For this reason, we recommend using a trusted course for beginners.
 

Check Out Our Course

We have handpicked cryptocurrency experts to help us create the ultimate beginners guide for buying Bitcoin. You will no longer be questioning how to buy Bitcoin and can just get started.

Understanding how to buy Bitcoin is just the first step. You will also want to understand which trading exchanges are trusted, how to use them, and how to buy other cryptocurrencies that may skyrocket in value. As your wealth grows, you will want to understand how to back up your funds and keep them secure. There’s a lot to learn. Our start investing course covers this all in a digestible manner. If you use the course today, you can be using your Bitcoin tomorrow!

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