With the huge spike in the price of Bitcoin, many people have become interested in this digital gold. However, buying Bitcoin is still a strange thing for many people new to crypto.
This article by CoinMinutes will teach you the easiest ways to purchase Bitcoin, including using a credit card, cash, or gift card.
Quick Steps to Buy Bitcoin
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How to Buy Bitcoin?
As the financial market based on blockchain technology rapidly develops, buying Bitcoin is becoming a popular demand. Here’s an overview of how to buy Bitcoin for those looking to enter this promising market:
Step 1: Choose a source to buy bitcoin
When it comes to buying Bitcoin, you have several options. You can trade over-the-counter (OTC) or buy directly from Bitcoin ATMs. However, the most popular method to purchase Bitcoin is using centralized crypto exchanges (CEX) – online platforms used to buy and sell cryptocurrencies
Buying and selling Bitcoin through CEXs is much easier. Some popular CEXs include Binance, OKX, Bybit, HTX, KuCoin, and Coinbase. These platforms offer user-friendly interfaces and a variety of features.
Keep in mind that using centralized exchanges requires completing a Know Your Customer (KYC) process. This process acts as authentication that ensures financial security for both the platform and its users.
Step 2: Create an Account
After selecting a CEX, you’ll need to create an account to trade Bitcoin on that platform. This involves providing your email address, creating a password, and verifying your identity. Verification usually requires uploading your ID, such as a driver’s license or passport, and sometimes additional documents like a utility bill.
Step 3: Choose a Payment Method
Next, you’ll need to select a payment method to start buying or selling Bitcoin on CEXs. Most exchanges accept bank transfers, debit cards, and credit cards. The fees for each payment method vary depending on the bank’s policies and the exchange platform. Among these, credit card fees are typically the highest.
Step 4: Deposit Funds
Once your payment method is selected, you can deposit funds into your exchange account. This step involves transferring money from your bank account or credit/debit card to your exchange account.
Depending on the payment method that you choose, this process can take from 5 to 30 minutes.
Step 5: Buy Bitcoin
Depending on the platform you’re using, you can simply buy Bitcoin by tapping a button or clicking on Bitcoin’s ticker symbol: BTC.
Step 6: Store Your Bitcoin Safely
After purchasing Bitcoin, it’s crucial to store it properly. While exchanges offer wallets for storing your Bitcoin, it’s safer to transfer your funds to a personal wallet. There are two main types of wallets: hot wallets (online) and cold wallets (offline). For long-term storage and better security, using a cold wallet such as a hardware wallet is a better option.
How to Buy Bitcoin with Credit Card?
When using a credit card to buy Bitcoin online through decentralized exchanges, users typically need to enter the CVV code from the back of the card and an OTP is sent to their registered phone number.
The payment process for Bitcoin with credit cards can vary by bank and transaction, but the basic steps are as follows:
- Step 1: Pick an exchange like Coinbase, Binance, or CEX.io that accepts credit cards.
- Step 2: Create an account and complete the identity verification process.
- Step 3: Go to the payment methods section and input your credit card details, including the card number, CVC/CVV number, and account holder name.
- Step 4: Use your credit card to add funds to your exchange account.
- Step 5: Navigate to the Bitcoin trading section, enter the amount of Bitcoin you want to buy, and confirm the purchase.
Note: CoinMinutes advises against using a credit card for Bitcoin transactions. Since this is borrowing a loan from the bank, you will incur very high interest rates.
How to Buy Bitcoin with Debit Card?
Purchasing Bitcoin using a debit card is quite simple. After you access the exchange platform, please follow these steps:
- Step 1: Find the Trade button, select Buy, and click the Bitcoin symbol.
- Step 2: Enter the amount of Bitcoin and select the payment method at the bottom by clicking Add Payment Method.
- Step 3: Select Add New and then choose the Debit card option.
- Step 4: Next, you will need to provide your card details, including the cardholder’s name, card number, and expiration date. After that click the Submit Card.
- Step 5: Click Buy Now. This will take you to a website/mobile app hosted by your bank to complete the transaction.
How to Buy Bitcoin with Prepaid Card?
A prepaid card is a payment card that has no connection to your bank account. You can reload the card online or at an ATM, a participating store, or another physical location when the balance is used up. In other words, a prepaid card works just like topping up a mobile phone: you can only spend the amount you load onto it.
Similar to other card types, to use this payment method, you need to find exchanges that accept prepaid cards, such as swissmoney or CEX.IO. Then, create an account, verify your identity, and choose the prepaid card as a payment method.
Now you’re ready to buy Bitcoin. Follow these steps:
- Step 1: Find the ‘Buy Crypto’ or equivalent section on the exchange.
- Step 2: Choose Bitcoin from the list of available cryptocurrencies.
- Step 3: Input how much Bitcoin you want to buy, either in Bitcoin or in your local currency.
- Step 4: Ensure your prepaid card is selected as the payment method.
- Step 5: Double-check all details, including the amount of Bitcoin, the exchange rate, and any fees. Confirm the transaction to proceed.
Once the purchase is complete, your Bitcoin will be available in your exchange account.
How to Buy Bitcoin with Cash?
There are 2 most popular ways you can trade Bitcoin with cash: buying through Bitcoin ATMs and Peer-To-Peer Trading
Bitcoin ATMs
Despite being still quite new, Bitcoin ATMs have emerged in many cities around the world, with their numbers steadily increasing. These are self-service machines that function similarly to regular ATMs – used to deposit cash into a bank account. The ATMs charge fees ranging from 3 to 8% based on the prevailing exchange rate. While these fees are considered quite high, purchasing Bitcoin from BTM is user-friendly and very convenient making it one of the best ways to obtain Bitcoin.
How to Buy Bitcoin with Bitcoin ATMs?
- Step 1: Find the nearest Bitcoin ATM location. You can visit coinatmradar.com to help pinpoint the closest Bitcoin ATMs. Enter your location in the search box to find machines near where you live.
- Step 2: Use the touchscreen display of the BTM, and select “Buy Bitcoin”.
- Step 3: Scan the Bitcoin receiving address in your wallet using the ATM’s QR code scanner so the machine knows where to send the Bitcoin after you’ve made the purchase.
- Step 4: Check if the alphanumeric address displayed by the machine matches exactly with the address shown by your wallet app.
- Step 5: Insert your cash into the cash slot.
- Step 6: Set the mining fee you want to pay for the transaction to be confirmed in the block. Note: The higher the fee, the quicker the transaction gets confirmed.
- Step 7: Complete the transaction by accepting the purchase. Keep the receipt in case of any issues.
Bitcoin Peer-To-Peer Trading
Peer-to-peer (P2P) transactions are a method of buying and selling cryptocurrencies directly between users without a middleman or Intermediaries. To be more specific, buyers will access a P2P exchange platform and connect with Bitcoin sellers near them to arrange a meeting in person and then conduct the transaction.
How Bitcoin P2P Trading Works
On P2P exchanges, you can create a buy order based on your desired price and payment method or search for a seller that matches your demand.
Here’s how you can buy Bitcoin with cash in four simple steps:
- Step 1: Create a purchase order or find a suitable vendor by selecting the available criteria on the P2P exchange website.
- Step 2: Contact the seller to discuss the transaction details and reach a final agreement.
- Step 3: Pay the agreed amount and confirm your payment.
- Step 4: The Bitcoin, was placed in escrow, and will be transferred to your wallet once the payment is confirmed.
More about buying Bitcoin with cash: coinminutes.com/learn/how-to-buy-bitcoins-with-cash
How to Buy Bitcoin with Paypal?
You can buy Bitcoin using a payment processor like PayPal Holdings Inc. There are two ways to do this: by connecting your PayPal account to a debit card or bank account, or by using your PayPal balance to purchase Bitcoin from a third-party provider.
When you buy Bitcoin directly through PayPal, the company earns money from the crypto spread—the difference between Bitcoin’s market price and its exchange rate with the U.S. dollar. Additionally, PayPal charges a transaction fee for each purchase, which varies based on the amount of Bitcoin you buy.
More about buying Bitcoin with Paypal: coinminutes.com/learn/how-to-buy-bitcoin-with-paypal
How to Buy Bitcoin with Gift Card?
Bitcoin is often used to purchase gift cards because it’s anonymous and sometimes cheaper than using cash. These gift cards themselves can also be exchanged for BTC. You’ll need to buy a gift card from a retailer, then log in to a trading platform where sellers accept gift card payments like Paxful, LocalBitcoins, etc., to make the transaction.
Depending on the buyer, some may ask to see a photo of the gift card’s code on the back and a receipt from the store where it was issued, while others may only need the code. When you open a trade, the amount of Bitcoin you want to buy is held by the website, so you don’t have to worry about being scammed.
How to Buy Bitcoin with Apple Pay?
In the United States, Apple Pay has been used by over 45 million people. Thanks to the popularity of Apple products, Apple Pay has become one of the most widely used payment systems. Therefore, it can be a viable option for paying Bitcoin transactions.
- Step 1: Select a cryptocurrency exchange that supports Apple Pay, such as CoinGate, BitPay, or similar platforms.
- Step 2: Sign up for an account on your chosen platform and complete any necessary verification processes.
- Step 3: Navigate to the section where you can buy Bitcoin and choose Apple Pay as your payment method.
- Step 4: Enter the amount of Bitcoin you wish to buy, confirm the transaction details, and complete the purchase using Apple Pay.
Best Way to Buy Bitcoin
In our opinion, using centralized crypto exchanges is the optimal way to Buy Bitcoin. There are 3 main reasons to support this claim:
- Security: Many exchanges like Binance, OKX, and Bybit are recognized as the most reputable and fastest places to buy and sell Bitcoin.
- Flexibility: Users can buy Bitcoin in large or small quantities depending on their personal needs, providing flexibility in the trading process.
- Cost-effective: This is another notable point, as the Bitcoin prices on reputable exchanges are evaluated as the best compared to other channels, and the price difference between buying and selling is also very low.
Safest Way to Buy Bitcoin
Buying Bitcoin through BTMs is considered the safest way.
You simply need to insert cash into the ATM and then scan the QR code on your wallet to buy Bitcoin as well as many other valuable altcoins. This method minimizes the risk of the possibility of personal information theft and allows you to trade completely anonymously.
The Bottom Line
Following the Bitcoin Halving event, Bitcoin is attracting more investors’ attention. With this trend, the demand for buying Bitcoin is becoming increasingly popular. CoinMinutes hopes that the shared information will help you know how to buy Bitcoin most easily and safely.
