The cryptocurrency craze that overwhelmed the minds of many people in 2017 is still going on. Despite the current downtrend, statistics show that the number of Bitcoin wallets keeps on growing.
You may have decided to buy Bitcoin yourself and are now looking for the best way to do this. If you are totally new to digital currencies don’t expect to make a million overnight and invest only as much as you can afford to lose.
Below you will find a detailed step-by-step guide on how to buy cryptocurrencies using various payment methods. Choose that one that works for you best and go ahead!
LocalBitcoins is one of the most reputable and long-living online services that help people who want to buy Bitcoin to find those who want to sell it. You can find such people in your own city, even on your own street!
The payment method depends on how you arrange it with your opponent. You can send payment with a debit card, to the seller’s bank account or even arrange a face-to-face meeting in a cafe and pay with cash.
Pros: buy bitcoins anywhere, pay with your local currency, multiple payment methods, escrow service to guarantee the deal.
Cons: the exchange rate is usually worse compared to the market average. Also, you should beware scammers and be very cautious not to lose your money. Only Bitcoin is available for sale, you can’t buy any altcoins.
How to buy cryptocurrencies on LocalBitcoins
- Create an account for free.
- On the main page, enter the amount of your local currency that you want to convert to bitcoins, select your location and the payment method (optional).
- Select the offer that suits you best. Pay attention to the seller’s reputation, the response time and the sell limits.
- Click on the “Buy” button and follow the purchase procedure. Be sure that you have the required sum at hand since you’ll be given only a short period of time to complete the transaction.
- Click on ‘I have paid’ button after making the payment.
- Once the trader verifies that the money has been received, bitcoins will be released from escrow and sent to your wallet on LocalBitcoins.
Buy Bitcoin with a credit card
There are many online services that accept credit card payments to sell cryptocurrency. The most reputable ones are Coinbase, Coinmama and BitPanda.
Coinbase is one of the most reputable platforms where you can buy cryptocurrencies not only with a credit card, but also from your bank account. Apart from Bitcoin, you can also buy here Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). The service also provides its users with online wallets for storing their digital currency. The downside is the limited geography. As of December 2018, Coinbase supports only around 40 countries, mainly in Europe.
Pros: reputable service, user-friendly interface, possibility to buy Bitcoin instantly with a card or from your bank account, multiple currencies, a small fee (3.99%).
Cons: limited geographical coverage, the service tracks where you send your bitcoins, small weekly limits (you can spend only up to 150 USD or EUR per week), up to 5 days to complete the purchases via bank transfer.
How to buy cryptocurrency on Coinbase
- Make sure that your country is in the list of supported regions.
- Create an account.
- Upload all the necessary documents and provide the needed information to pass verification.
- Once your account is verified, go to the purchase page and select the type of digital currency you want to buy.
- Enter the amount of cryptocurrency you want to buy or the amount of fiat you want to spend.
- Choose the crypto wallet to send your funds to.
- Choose the payment method.
- Confirm the order is correct and finalize the purchase.
This is another reputable service to buy cryptos with a credit or a debit card. Unlike Coinbase, Coinmama supports almost all countries (in the US, only some states are supported) and offers much higher daily and monthly limits. You can spend up to 5,000 USD for bitcoins per day and up to 20,000 USD per month.
The choice of altcoins is a bit wider: Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Qtum (QTUM), Ethereum Classic (ETC), Bitcoin Cash (BCH) and Ripple (XRP) are available for the purchase.
Coinmama charges 5.9% per transaction. But since it relies on Simplex that comes with 5% fee to process credit card payments, the ultimate fee is as big as 10.9%.
Pros: good reputation, user-friendly, works worldwide, a wide choice of altcoins.
Cons: high fees, even for the bank card bitcoin brokers.
How to buy cryptocurrency on Coinmama
Since the service is designed to facilitate onboarding for new users, the process of purchasing cryptos is very simple:
- Create an account.
- Pass verification by providing all the necessary personal details and uploading the scans of documents.
- Select the payment method: a credit/debit card or bank transfer.
- Specify how much BTC you want to buy.
- Enter your BTC wallet address.
- Enter your credit card details.
- Finalize the transaction.
This Austria-based service offers a simple and reliable way to buy cryptocurrency with a credit or debit card. Since it is located in the SEPA region, it works mostly with the European countries, but covers some more regions from other parts of the world, too. At BitPanda, you can buy cryptocurrency not only with a credit card, but also via bank transfer, Skrill, Neteller and many other options.
Pros: low fees, the rate is close to the market average (Coinmarketcap), more than 20 altcoins are supported, multiple payment options.
Cons: limited geographical coverage, the fees are not displayed explicitly on the website, you will only see them when you complete the purchase.
How to buy cryptocurrency on BitPanda
- Create an account.
- Pass verification. Note that you will only be able to do this if your country is supported.
- Select the cryptocurrency you want to buy, the payment provider and the amount to spend or to receive.
- Confirm the payment method and the amount you want to buy.
- Verify the buying procedure via SMS or a phone call.
- Complete the purchase order in a 10-minutes timeframe.
- Withdraw cryptocurrency to your wallet.
Buy Bitcoin via PayPal account
Using your PayPal account to buy cryptocurrencies may turn out to be most difficult due to numerous chargebacks caused by scammers over the last year. It’s recommended only if you have a small amount of unused funds on your account. Buying cryptocurrencies with a credit card may eventually become a much easier task.
However, if you are still inclined on using the funds from your PayPal account, don’t despair as there are still some services that allow doing this. The most popular of them all is Virwox.
Virwox is one of the websites that make it possible to use the PayPal account for purchasing cryptos. It’s not very user-friendly and has a weird outdated interface. But still, it is one of the most reliable options that are currently available.
The deposit limit differs depending on the age of your account and how often you make purchases via Virwox. For a total newbie, the limit equals to 90 USD per day and 270 USD per month. If you make regular purchases then by the end of the 2nd month these limits will grow to 400 USD per day and 5,000 USD per month.
Pros: reliability, the service has been offering the scheme to by-pass the chargebacks for a long while already.
Cons: high fees, low purchase limits, not user-friendly, delays up to 48 hours for new users.
How to buy cryptocurrencies via Virwox
- Create an account.
- Fill in your personal details. Note that there’s no need to fill in the field ‘Avatar name’.
- Activate your account by following the confirmation link that you receive to your mailbox.
- Change your password.
- Click on ‘Deposit’ on the left-hand menu, choose PayPal Express and upload the necessary amount of funds.
- Go to ‘Exchange’ – ‘USD/SLL’ on the left-hand menu and buy SLL.
- Buy BTC with SLL by following the ‘BTC/SLL’ link on the left. Note that it may take up to 48 hours for Virwox to review this transaction.
- Click on ‘Withdraw’ on the left-hand menu and send your bitcoins to the wallet where you want to keep them.
- If this method seems too complicated you can also find a seller that accepts payments from PayPal account on LocalBitcoins and conduct the transaction in a much easier way.
Buy Bitcoin via crypto ATMs
Bitcoin ATMs work just as traditional ATMs that we all are used to. The only difference is that instead of giving out cash, they send bitcoins to your wallet address in exchange for cash or debit card payments.
You may be surprised how many Bitcoin ATMs there already are around the world. Most of them are located in Europe and in the US, of course, but some other regions start using them, too. You can check if there is such a machine in your city at CoinATMradar. Some of the ATMs even give you a possibility to buy not only Bitcoin, but some popular altcoins such as Zcash, Monero, Ether and a few others as well.
Pros: convenient interface, possibility to buy Bitcoin with cash in your local currency, average fees.
Cons: the rate is usually worse than the market average, small transaction limits, especially in the US.
How to buy cryptocurrencies via ATMs
- Select the language, then select the currency you want to buy.
- Choose the amount.
- Enter your mobile phone number and the verification code.
- Specify your crypto wallet or create a new one to receive the funds.
- Put the cash into the dispenser and finish the transaction.
Buy Bitcoin on exchange platforms
If you are familiar with the stock market and have at least some experience in trading you may also buy Bitcoin via cryptocurrency exchange platforms, such as GDAX, Binance, Bitstump, KuCoin, Bitfinex, Poloniex or any other. Not all of them give a possibility to buy cryptocurrencies with fiat, so in some cases, you will only be able to exchange altcoins.
Pros: multiple trading pairs, fair rates, low transaction fees.
Cons: long onboarding due to the ID verification, bank transfers may take up to a week, low security since cryptocurrency exchange platforms are a juicy target for hackers.
How to buy Bitcoin via cryptocurrency exchange platform
The process may differ for different platforms, but the overall logic remains the same.
- Sign up on a selected platform.
- Provide your personal information and upload the necessary documents to pass the KYC (know-your-customer) procedure.
- Wait until your documents are approved. For different platforms, this process may take from several hours up to several months.
- Attach your credit or debit card to your account if the platform supports fiat pairs and buy whatever cryptocurrency you desire.
- Withdraw cryptos to your own wallet for security purposes. The most secure way is to get a hardware wallet.
Buy Bitcoin via Paxful
Paxful is yet another service that allows buying cryptocurrency with any debit/ credit card, cash, Apple Pay, air miles, the gift card of iTunes, eBay, Amazon and many other retailers.
Pros: multiple ways of payment.
Cons: practically the worst rates that you can find, small limits.
The basic rule of a cryptocurrency investor says ‘Buy low, sell high’. Although the crypto industry doesn’t feel so well for the last several months, wise investors see an opportunity here.
If you’ve decided to make some money on the future growth of cryptocurrencies you can use any of the ways that we’ve described in this article. Don’t give in to the overall panic and study the market in details to make the right choice.