Table of Contents
- 1 How to Buy Bitcoin: So, What is Bitcoin?
- 2 Where Can You Buy Bitcoin with Credit Card or Debit Card?
- 3 How to Buy Bitcoins with Cash and Anonymously
- 4 Keeping Your Bitcoins Secure
- 5 When to Buy Bitcoin
- 6 Conclusion
How to Buy Bitcoin: So, What is Bitcoin?Put simply, Bitcoin is a digital currency that you can use to buy and sell things. It is very different to physical money though, as it is completely digital. There is no government or bank that stores or creates Bitcoin.blockchain. Rather than being printed, like traditional money (USD, JPY, EUR etc.), it is created by the computers that run the database. The computers verify the Bitcoin transactions and are rewarded with new Bitcoins! It’s a process known as mining, and the computers are known as miners. For more on this, see our guide on What is Bitcoin and how does Bitcoin work. Bitcoin has been a great way to earn money for investors over the last 5 years. So, you want to buy Bitcoin, but you don’t know where to start and keep wondering ‘How to buy Bitcoin?’… Let’s explain then, shall we? But First, Let’s Get This Straight… Can You Buy Partial Bitcoins? Can you buy half a Bitcoin, a quarter of a Bitcoin or even a tenth of a Bitcoin? The simple answer to all those questions is… YES! You don’t have to spend your whole life savings to buy a full Bitcoin.
Half of a Bitcoin looks like this: 0.50000000
A quarter of a Bitcoin looks like this: 0.25000000
One-tenth of a Bitcoin looks like this: 0.10000000 You can buy Bitcoin with however much (or little) you like. In fact, Coinbase even allows you to buy $1 of Bitcoin! Now that you know the amounts, let’s get started on actually explaining how to buy Bitcoin.
A quick tip: Satoshi comes from the name “Satoshi Nakamoto”, who is the unknown creator of Bitcoin.
Where Can You Buy Bitcoin with Credit Card or Debit Card?The best way to buy Bitcoins is by using a Bitcoin exchange. These are websites that allow you to purchase Bitcoin using your bank card. The best options and the ones that I recommend are Coinbase, CEX, and Coinmama. All these sites are compatible using your desktop and mobile. It’s easy to sign up and they make the beginning of your Bitcoin journey much easier than other options. When you find a crypto exchange that meets the requirements you want, go ahead and sign up!
Let’s walk you through the steps for setting up a Coinbase account and making the first steps on how to buy Bitcoin:
- First, go to Coinbase and click “Sign Up”
- You will then be sent to the following screen:
- Confirm your first name and last name
- Type in your email address
- Create a password that you will remember!
- Click to verify that you aren’t a robot
- Now, you need to log in to your email (the one you put into Coinbase). You should have an email from Coinbase — click the link in the email to verify your account.
- Once you have logged in, you will need to confirm your mobile number for Two-Step verification.
- You will then receive a text message to your mobile with a 7-digit activation code.
- Type your activation code into on Coinbase
- Upload a form of ID (Passport, Driving license or another form of Photo ID)
- Add a payment method
- Verify your payment method
“But, how do I buy Bitcoin?” Once you have your Coinbase account set up, the next part is easy!
- From the home page of Coinbase, click the option to “Buy/Sell”
- Once you are on the Buy/Sell page, you are now ready to buy Bitcoin!
- Select the Bitcoin option and enter the amount you would like to spend!
- The amount that you enter will convert into the amount of Bitcoin it is worth. You can see from the image above that I am going to buy £100 worth of Bitcoin. £100 is worth 0.0117 BTC at the time of taking this image.
- Click “Buy Bitcoin Instantly” and you’re finished!
Market cap: The total price of all coins added together. For example: Bitcoin’s market cap is the value of all Bitcoins added together.
How to Buy Bitcoins with Cash and Anonymously When you first think about buying Bitcoin, you might wonder how to do it anonymously. The easiest way to buy Bitcoins anonymously is by using LocalBitcoins.
Buying Bitcoin With LocalBitcoinsLocalBitcoins allows you to buy Bitcoin online in the following ways:
- You can buy Bitcoin with cash by meeting up with the sellers that live near you
- Choose to buy Bitcoin from other people by sending a bank transfer
- You can deposit money into the seller’s bank account by going to a bank and depositing cash into their account
How to Buy BTC Using an ATMNext, you have the Bitcoin ATM option. Another great choice if would like to buy Bitcoin without using your ID. At a Bitcoin ATM, you can buy Bitcoin with cash or with a debit/credit card.
Source: qzHowever, Bitcoin ATMs are hard to find, and they are limited to only the countries that allow them. There are also many different types of Bitcoin ATMs, but most of them follow the same process:
- Click the option to “Buy Bitcoins”
- Type your mobile number into the ATM
- You will then receive a text message with a verification code
- Type the code into the ATM
- The ATM will ask you for your Bitcoin wallet address
Note: If you haven’t set up a Bitcoin wallet, then click the option that says, “I don’t have a bitcoin wallet address”. The ATM machine will then create a new Bitcoin wallet address for you, which you can print out. This printed-out paper will have the public and private keys to your Bitcoin wallet on it. Please keep this extra safe!
- Enter your Bitcoin wallet address that you would like your Bitcoins to go to
- Put your cash into the ATM machine
- Press “Send” and Bitcoins will be sent to you immediately
Keeping Your Bitcoins SecureNow that you know how to purchase Bitcoin, it’s important that you understand how to keep your Bitcoins safe.
Hardware WalletsThere are many ways for you to store your Bitcoins safely once you have bought them. So now that you know how to buy Bitcoin, time to know how to keep them safe. The most secure way and the way I recommend is to store your Bitcoin in a hardware wallet.
Hardware wallets come with a price, but they are much safer. So, if you really, really don’t want to lose your Bitcoin, you should think about buying one of these:Nano Ledger S – The Nano Ledger S allows you to store Bitcoin, Ethereum, and other cryptocurrencies! This is an easy-to-use hardware wallet with a lot more security than online wallets and software wallets. You can buy the Ledger Nano S for around $95. Trezor Wallet – The Trezor wallet is one of the most secure ways to store your Bitcoins. It stores the keys to your wallet on a small piece of hardware – like a USB! However, this USB is different — it cannot be affected by viruses! You can buy a Trezor wallet for around $99.
Unlike online wallets and software wallets, the Trezor and Nano Ledger S are not always connected to the internet. They are only connected to the internet when you plug them into your computer. This makes it much harder for hackers to attack your wallet!
SSL CertificatesWhenever you sign up or log in to a website that you buy, sell or store cryptocurrency on, you should always check that the website has an SSL Certificate. This is the green text that is on the left of the website address. In the image above, you can see that the SSL Certificate says “Secure” — this means we are on the real LocalBitcoins website. An SSL certificate is a type of security that is used to keep your information secure. It makes sure that any information that is entered into the website stays private — this is very important for your safety! SSL certificates are there to protect your privacy and stop you from using a fake Bitcoin exchange site, and it will keep your Bitcoin wallet safe from hackers. If the website doesn’t have an SSL knowing how to buy Bitcoin won’t be very useful, as you might lose them.
A quick tip: If you’re going to use cryptocurrency website regularly, like LocalBitcoins or Coinbase, you should ‘bookmark’ the real website with the SSL certificate! This way, you can just click the ‘bookmark’ when you want to use that website — you always know it’s the real one without needing to check.
Two-Step VerificationWhen you have set up your exchange account (such as Coinbase), it will ask you to set up two-step verification. This keeps your account secure and I strongly advise that you set it up.
- Enter your mobile number into the exchange website
- The exchange will then send a text message to your mobile with a code
- Enter the code into the box on the website
Google Two-Step VerificationGoogle two-step verification is very similar to text message two-step verification. The only difference is that Google’s two-step verification uses a Google app on your phone, instead of using your mobile number. Not all sites offer Google’s two-factor verification, however, if it does then this is how you will set it up:
- Go to your account settings
- Click “Two-Factor Authentication”
- Install the Google Authenticator app on your phone
- Enter the code from the exchange, or scan the barcode with the Google Authenticator app
- Then enter the code into the exchange website
When to Buy BitcoinCoinMarketCap. Here, you will find the Bitcoin price chart which tells you the current price of Bitcoin, as well as its price history. Since you already know how to buy Bitcoin, let’s get some insights about the ‘when’s’. The price of Bitcoin changes all the time, and it should be your goal to buy Bitcoin at the cheapest price possible. This is to make sure that you make the best return on your investment. For more on this, read our Bitcoin Price Prediction guide. So, What is the Best Way to Buy Bitcoin? You Decide. When buying Bitcoin with cash, you can remain anonymous by using a Bitcoin ATM or buying privately from a person on LocalBitcoins. However, these options can take up a lot of your time. If you want to use an ATM, then you must spend time traveling to an ATM. Or, if you buy Bitcoin using cash on LocalBitcoins, then you must either travel to meet the seller or travel to a bank to send the cash.
Note: When you send cash via a bank, you still don’t need your identity. This is only available in selected countries though.So, those are the best ways of buying bitcoin without using your identity. If you’re looking for speed, though, use Coinbase, Coinmama or CEX.io. You will have to verify your identity, but you can pay with a debit/credit card. There is one thing left when it comes to answering how to buy Bitcoin question: your location. If you’re based in the U.S., CEX.io is probably not the choice for you. This is because it is only available in a few U.S. states! Check their website to find out which ones. Most of Asia, Africa, and South America cannot use Coinbase either. There’s good news though – Coinmama is available in every country around the world!