Bitcoin broke through a high record above $8,000 on Monday, November 20, after a dismal September in which the cryptocurrency fell to $2,900 a coin on September 15. This guide will tell you about how to buy bitcoin instantly which more and more cryptocurrency users are concerned about.
Before buying bitcoins, you should need a bitcoin wallet to store your new bitcoins.
Depending on the security levels you want, different wallets will provide different levels of security. Some act like everyday spending accounts and are comparable to a traditional leather wallet, while others tout military-grade protections.
The main options are: (1) a software wallet stored on the hard drive of your computer, (2) an online, web-based service or (3) a ‘vault’ service that keeps your bitcoins protected offline or multisig wallet that uses a number of keys to protect the account.
The bitcoin wallet can be divided into desktop wallets, mobile wallets, online wallets, hardware wallets and paper wallets.
- Desktop bitcoin wallets: MultiBit, Hive, Armory, DarkWallet
- Mobile bitcoin wallets: Mycelium, Xapo and Blockchain
- Online bitcoin wallets: Coinbase, Circle, Blockchain, Xapo
- Hardware bitcoin wallets: Trezor hardware wallet, Ledger USB wallet, Keepkey.
Buy Bitcoins from Bitcoin Exchanges
You can buy bitcoins from either exchanges, or directly from people via marketplaces.
You can pay for them in variety of ways, ranging from cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live.
Surprisingly, it’s still not easy to buy bitcoins with your credit card or PayPal, depending on your jurisdiction.
However, the options have recently grown for consumers in some countries.
In the U.S, Coinbase and Circle offer purchases with credit cards. Bittylicious, CoinCorner and Coinbase offer this service in theUK, accepting 3D Secure-enabled credit and debit cards on the Visa and MasterCard networks.
Buy bitcoins in the United States
Coinbase is a popular wallet and exchange service that will also trade US dollars and euros for bitcoins. The company has web and mobile apps. Originally a US-only service, Coinbase has recently opened up to a large number of European countries.
Kraken is one of the largest Bitcoin exchange in euro volume and liquidity and also trading Canadian dollars, US dollars, British pounds and Japanese yen.Kraken is consistently rated the best and most secure Bitcoin exchange by independent news media.
Poloniex is a US-based digital asset exchange offering maximum security and advanced trading features.
Bitfinex is a full-featured spot trading platform for the major cryptocurrencies. The platform offers leveraged margin trading through the peer-to-peer funding market.\
Buy bitcoins inUnited Kingdom
CoinMama is a bitcoin broker that enables purchasing bitcoins with credit or debit cards. Fees are about 10% with limits of about $5,000 per day and $20,000 per month. After verification then bitcoins are received within a few minutes. CoinMama is available only in some US states.
SpectroCoin is an all-in-one solution for Bitcoin offering an exchange, debit card and ability to buy bitcoins with credit cards.
If you live in a city, prefer anonymity or don’t want bank hassles, the easiest option to acquire bitcoin is to make a face-to-face trade with a local seller.
If one-on-one trades aren’t your thing, check out Meetup.com to see if your area has a bitcoin meetup group, where you can do it all in a group setting and learn a lot from the other members in the process.
Depending on the seller, you may pay a premium of around 5-10% over the exchange price for a face-to-face trade, for convenience and privacy. A reputable trader will negotiate the price before a meeting, but many won’t want to wait too long in case bitcoin’s value takes a dramatic shift.
Some sellers may let you use a PayPal account to pay, though most prefer non-reversible cash for the reasons described earlier.
It’s also wise to check first if such trades are legal in your local area. There is also a slight danger you’ll arouse police suspicion by exchanging cash in a public place, if they think you’re trading something more illicit.
Though a relatively new concept, bitcoin ATMs are growing in number.
More are on the way, from a number of different vendors including BitAccess, CoinOutlet, Genesis Coin , Lamassu and Robocoin.
Like a face-to-face exchange but with a machine, you insert your cash and either scan your mobile wallet QR code or receive a paper receipt with the codes necessary to load the bitcoins onto your wallet.
Exchange rates vary, and may be anything from 3% to 8% on top of a standard exchange price.
Frequently asked questions
Why Does Buying Bitcoin Take So Long?
Long wait times are usually a problem with existing payment systems, not with Bitcoin itself.
Bitcoin transactions only take about 10 minutes to confirm. Bank transfers in theU.S., for example, can take up to five days to complete.
Bitcoin transactions can be confirmed as quickly as 10 minutes; it’s rare to experience a delay longer than one hour.
This means that a merchant can’t release bitcoins to a customer until five days have passed unless they’re willing to take on risk.
Why Should I Buy Bitcoin Instead of Mining?
A long time ago anyone could mine bitcoins on their computer at home. Today, only specialized computer hardware is powerful enough to do this.
Think about it like this:Should you buy gold or mine gold? Well, to mine gold you need big powerful machines, a lot of time, and money to buy the machinery. This is why most people just purchase gold online or from a broker.
So Bitcoin is no different.
You should just buy some if you want coins without trying to mine.
Do I need a Bitcoin Account Before Buying?
With Bitcoin, there are not really accounts.
Instead, you should have a Bitcoin wallet. If you want to store bitcoins, then a wallet is where you keep them.
In Bitcoin these wallets are not called an account but a wallet functions almost the same way. The only difference is you are responsible for the security if your wallet rather than placing the security in the hands of a bank or trust.
Statement: Please be sure to indicate the author and source when reprinting the article.