How to Buy Bitcoin?

On Mar 17, 2020

2 Introduction

Bitcoin is the largest cryptocurrency by market cap. Many of us heard about Bitcoin in 2017 when the price of Bitcoin is increasing daily and reached a new all-time high of $19700. Bitcoin is created by Satoshi Nakamoto (the real identity is still a mystery) in 2009.

Reports and surveys show that around 70% of U.S citizens have heard about Bitcoin at least one time. The same surveys show that only 5-7% of the U.S citizens have bought Bitcoin at least one time in their lifetime and hold it. That’s a very small number that means people don’t know where and how to buy Bitcoin. The surveys found that people think it is very difficult to buy Bitcoin.

Buying Bitcoin is much easier than people think. You just need to know the best and secure platforms to buy bitcoin in your country.

After reading the article you will know how to buy Bitcoin and have clear guidance on different ways to buy Bitcoin. Lets Start 🙂

3 Why Buy Bitcoin?

Bitcoin is the best asset of the decade that rises from $0.003 to $19700 and now trading at $9100. The total supply of Bitcoin is capped to a maximum of 21,000,000 Bitcoins, which makes it’s scarce. The maximum supply cannot be changed by anyone by any means.

The most bullish event of Bitcoin is coming in May 2020. Bitcoin halving is known as the most bullish event and will occur every 2,10,000 blocks ( Every 4 years). Bitcoin halving will reduce the block reward by half of its previous value and decrease the inflation rate of Bitcoin’s new coins generation.

Bitcoin is decentralized in nature and there is no central authority to control the network. No one can change the supply and network rules of Bitcoin. You can read our post for a better understanding of why Buy Bitcoin?

7 Reasons To Buy Bitcoin In 2020

The Bitcoinik team has been in crypto since 2012 and all the members have great experience in trading and buying cryptocurrencies. We all have faced liquidity, security, anonymity and customer service problems when buying Bitcoin.

Sometimes we have made mistakes and also learned from our mistakes, here we share our experience and knowledge with you. Here is the list of exchanges we can trust and use to buy Bitcoin in our past few years.

4 Best Platforms to Buy Bitcoin

Platforms to buy Bitcoin:

5 How to Buy Bitcoin in USA?

eToro

If you belong to a financial background (investor or trader), you may recognize the name eToro. Some of you can remember the logo of eToro (eToro name in green color with bull horns). eToro is one of the most famous platforms for trading of stocks and other financial instruments.

eToro has more than 10 million users on its platform. eToro has started cryptocurrency investing and trading in 2018. If you are looking to buy bitcoin then eToro is the best place to buy Bitcoin.

Pros of eToro

The company was established in 2007 and provides stocks and other financial instruments also
eToro is regulated and licensed by the Financial Conduct Authority (FCA)
Provides a wide range of deposit methods including credit/debit cards, Paypal, Skrill, Bank Transfer, and more.
Low trading fees. Deposit is free and only a 0.75% spread fee on buying Bitcoin from eToro.
Leverage Trading Available
Supports More than 15 Cryptocurrencies including Bitcoin, Ethereum, Litecoin, XRP, Dash and more
Users can use the social trading tool to copy elite traders strategies
Supports Major Fiat currencies for buying Bitcoin

Cons of eToro

Allows only Fiat Withdrawals that means users can buy/sell and hold cryptocurrencies on eToro but can’t send their crypto coins to other wallets. This is also a plus point if you are only looking for investing and taking profit from cryptocurrencies.
Some country residents are not allowed to create an account on eToro. Check the full list here.
The withdrawal fee is $5.
Leverage trading is unavailable in the US

Any withdrawals sent in currencies other than USD are subject to conversion fees. Details of our fees can be found here. Please note, you may be charged by the funding provider involved in the transfer (intermediary bank, receiving bank, or your credit card provider).

Coinbase

Coinbase was founded in 2012 and become one of the most famous platforms to buy Bitcoin. in 2017 Coinbase announced that they have reached a 13 Million user base and some new reports show that the Coinbase has become the easiest way to buy Bitcoin for 20 Million users.

Pros of Coinbase

All the cryptocurrencies stored in Coinbase are extremely secured. Users funds are secure even if there is a hack happened
The Coinbase funds are insured and users can buy and hold cryptocurrencies without any worries
Supports More than 15 cryptocurrencies for trading
Coinbase exchange is regulated and licensed from trusted authorities
Coinbase platform is available in almost all countries
The user interface is very simple and attractive. The mobile app and website is easy to understand and use

Cons Of Coinbase

Only the US, UK and EU residents can take advantage of all the features of Coinbase like buying bitcoin with bank transfer, Credit/debit card, and withdrawal directly to their banks. All other users can only use limited services.
The average fee for buying Bitcoin with bank accounts is 1.5% and the fee raises up to 4% when buying Bitcoin with a credit card.

Welcome Bonus: You will receive $10 worth of free Bitcoin if you buy $100 or more worth of Bitcoin on Coinbase using the link.

Abra

Abra is a United States-based financial and technological company that offers cryptocurrency exchange and wallet services. Abra was founded in 2014 and aims to buy and hold cryptocurrencies simple for everyone.

The Abra mobile app offers multiple cryptocurrencies including Bitcoin and some stocks for trading. The Abra mobile app is available on both Android and iOS and allows users to buy/sell and hold more than 100 cryptocurrencies and 50 fiat currencies in one place.

Note: Abra is giving $25 worth of Bitcoin for free on any purchase of $5 or greater using the US bank account or Amex card.

Pros of Abra

Easy and Quick Registration
Low trading fee
Abra does not control the funds of users. Everyone is responsible for their own funds
The mobile app is easy to use for trading and storing cryptocurrencies
Abra offers a unique crypto index “BIT10” which allows users to invest in top 10 cryptocurrencies at once
Good promotional offers
Allow buying bitcoin with a credit card and debit card

Cons of Abra

Abra only allows US and Philippines users. More countries will be added in future
There is no web interface available, only mobile app are used for trading and storing assets

6 How to Buy Bitcoin in Canada?

BitBuy

There aren’t many platforms to buy Bitcoin in Canada. Most of the international platforms do not accept Canada’s residents or not provide their full services like wire transfer and bank transfer.

Bitbuy is one of the platforms that offer full services to Canada’s residents. Bitbuy was founded in 2013 and continues to provide its services in the past 7 years. The platform is best to buy bitcoin in Canada with very reasonable fees. Bitbuy is licensed by the Financial Transactions and Reports Analysis Centre of Canada.

Pros of Bitbuy

Bitbuy is registered and licensed by the Financial Transactions and Reports Analysis Centre of Canada ( FINTRAC)
Best trading fee, funding fee and withdrawal fee among other platforms in Canada
The exchange is audited from trusted firms
Cold Storage security, user funds are stored in cold wallets
Smooth and easy user experience
6 cryptocurrencies are available for trading, good for new investors

Cons of BitBuy

The registration process is very lengthy and the exchange needs a lot of documents to verify the identity. Users can’t trade on the platform without KYC. Bitbuy is not the only exchange that asks for KYC, almost all Canadian exchanges follow the same procedure.

Welcome Bonus: Complete your first transaction of $100 or greater using the link and receive a $20 bonus into your account.

7 How to Buy Bitcoin in India?

The Supreme Court of India has lifted the RBI (Reserve bank of India) ban on Bitcoin. Now investors can buy bitcoin directly with their bank accounts or credit card/debit card.

Wazirx

Wazirx has become the number one cryptocurrency exchange of India in the past 2 years. After RBI banned buying bitcoin using bank accounts in May 2018, Wazrix has come up with P2P trading that allows users to trade bitcoin. Wazirx has become the first choice of Indian users and serves its users very well.

Now Wazirx also offers INR pairs where users can directly buy bitcoin and other cryptocurrencies directly by depositing INR to their Wazrix account using online bank transfers. Wazirx confirms the INR deposit and withdrawals within 1 hour. Users need to verify their KYC to use bank transfer. There is no minimum limit of deposit for now. The trading fee of Wazrix is 0.2% for the maker and 0.1% for the taker.

Zebpay

Zebpay was the leading exchange before the RBI ban. Zebpay stops all the services in India after the RBI ban and disappoints Indian investors. Zebpay is back now and allows investors to buy and sell Bitcoin and other cryptocurrencies with their bank accounts.

The minimum deposit amount is 1000 INR and the maximum deposit limit is 5,000,000 INR. The deposit and withdrawals are processed within 2-5 working days. Zebpay allows multiple INR-crypto pairs. The trading fee on Zebpay is 0 and you can trade without any extra hidden fees.

There are other Indian exchanges that also start bank transfer but we have only listed the best exchanges with the best liquidity among them. We will keep you updated once the other exchange reached our threshold limit. Both the exchanges are tested by the bitcoinik team are very good for Indian users.

Honorable Mentions

If you’re looking for more ways to buy Bitcoin, these are also good options:

Binance Jersey (the only UK and EU residents)
Huobi (for US residents) and Huobi Global (for non-US residents)
Coinmama (to buy Bitcoin quickly)
LocalBitcoins (to buy Bitcoin anonymously)
CEX.io
Kraken
Bittrex
Gemini

8 How to Buy Bitcoin Anonymously?

Most of the investors don’t want to reveal that they own any bitcoin or they are involved with cryptocurrencies. Everyone wants to buy bitcoin without revealing their identity and doing the long process of KYC (know your customer).

How to Buy Bitcoin with Cash

The best way to buy Bitcoin anonymously is to buy from a local trusted dealer in cash. Cash is one of the best ways to buy bitcoin. As you know it is very hard (nearly impossible) to track cash transactions. This is also a very risky method because the dealer can threaten you or call other parties to steal your cash. Always do cash deals with only trusted dealers and in public places. Don’t go alone for cash deals always take someone with you and make sure your location is shared with your family members.

Using a Bitcoin ATM

Another way to buy bitcoin anonymously is to use a Bitcoin ATM. Most of the BATMs do not ask for any type of KYC or documents. You can just check your near Bitcoin ATM and go there and buy your first Bitcoin. The only disadvantage of BATMs is that there is a maximum buying limit, so you can buy up to the buying limit.

How to Buy Bitcoin from a P2P Exchange

You can buy Bitcoin anonymously using Peer-to-Peer Bitcoin exchanges. A P2P Bitcoin exchange allows the buyer and seller to communicate in a secure session. The Bitcoins are held in escrow and when both parties buyer and seller confirm the payment is successfully received then the Bitcoin is released from the escrow. The P2P Bitcoin exchanges take a small fee for the whole process. There are many dealers on the P2P exchanges that don’t require any type of KYC to buy Bitcoin from them.

9 How to Buy Altcoins?

Binance

Binance was launched back in July 2017 and becomes the number one choice of the crypto traders. Since early 2018, Binance is considered as the largest cryptocurrency exchange by trading volume.

Initially, Binance has not supported Bank transfers or credit card payments to buy Bitcoin. Binance has only allowed users to trade Bitcoin and altcoins (coins other than Bitcoin).

Now Binance has started bank transfer and credit cards/debit card payments to buy bitcoin. Now Binance has supported more than 30 fiat currency pairs for buying bitcoin. Binance accepts credit card/debit card, direct bank transfer, Wechat, Alipay, QIWI and many other popular payment methods.

Pros of Binance

No need of KYC for trading Bitcoin and Altcoins
All the funds are secure and stored in a cold wallet
More than 100 Altcoin available for trading
Regular Update of the Exchange software and security
Low fees as compared to other cryptocurrency exchanges
The CEO is working hard to improve the exchange constantly
More than 300k daily active users

Cons of Binance

The customer service is a little slow because of millions of users
The exchange is not secured from any trusted third party

10 Safest Way to Buy Bitcoin

All of the above platforms are the best and safest ways to buy bitcoin. All the platform offers security and insurance for the user. eToro is running for more than 14 years and is regulated in many countries. eToro also provides insurance for users. Coinbase is running since 2012 and is a regulated platform in the USA, Coinbase also offers insurance and different type of security measures for users.

To keep your bitcoin and accounts safe we recommend you always enable 2-factor authentication (2FA) like Text message OTP or Google Authenticator. Use a unique and different password for all your exchange accounts and never use the same password for social media accounts.

11 Fastest Way to Buy Bitcoin

People think buying bitcoin needs a lot of technical knowledge and time. But the answer is No! You can buy bitcoin in just 5 minutes with your phone or laptop connected to the internet.

The fastest way to buy bitcoin is by using a credit card/debit card. The above all listed platforms accepts credit card/debit card for payments. Bank transfer is also a good choice but it takes some time for confirmation from the bank. Abra and Coinbase is the fastest way to buy bitcoin in the USA. Users can also use Binance and eToro.

Another way to buy bitcoin instantly is by using a Bitcoin ATM. Just insert cash in the BATM (Bitcoin ATM) and get your Bitcoin instantly on your provided address. There are more than 7000 BATMs installed worldwide.

12 Easiest Way to Buy Bitcoin

From the above-listed platforms, Binance and eToro are the easiest way to buy bitcoin. The registration process is very simple and they don’t ask for any documents on registration. Both the platforms allow users to deposit without any fee and users can buy bitcoin without their KYC completed.

If you have only your mobile phone then Abra is also a good choice. Abra is only for United States residents. The mobile app is very smooth and easy to set up.

13 How to Buy Bitcoin from a Bitcoin ATM

Nowadays, it is very easy to get your first bitcoin. Bitcoin ATMs are the best ways to buy bitcoin with any fiat currency. Today there are more than 700 Bitcoin ATMs installed and working properly worldwide.

Here is our Full Guide How to Buy Bitcoins From ATM

Some of the BATMs may require id verification or additional documents when you use them. Most of the BATMs does not require any type of verification or documents. Please read the instruction of the BATMs before using them. Many BATMs supports multiple cryptocurrencies so users can buy their favorite cryptocurrency.

14 Cheapest Way to Buy Bitcoin

eToro is the cheapest way to buy bitcoin among the listed above. The fee is not the same for other coins on eToro. We recommend users to buy Bitcoin with bank transfer because it is the cheapest way and the fee for bank transfer is either 0 or very less as compared to debit card/credit card.

Abra and Coinbase also provide low fees for US residents and Bitbuy for Canadian users. Binance is the best exchange to trade Bitcoin and Altcoin and has reasonable fees.

15 How to Buy Bitcoin with PayPal

Buying bitcoin with Paypal is not a good idea. You need to pay a lot of intermediary fees and the process is also length. First, you need to verify your Paypal account and add funds into it via a credit card/debit card. Then you need to find an exchange that accepts payments via Paypal.

From the above-listed exchanges, only eToro accepts payments via Paypal without any deposit fee. Never use PayPal to buy bitcoin from P2P exchange because there are many scammers that will play tricks and steal your funds.

16 How to Buy Bitcoin with Credit Card/Debit Card

You need to find a platform that provides good security and acceptable deposit fees to buy Bitcoin using a credit card/debit card.

eToro is one of the best ways to buy bitcoin with a credit card/debit card. eToro is trusted and providing services to its customers since 2006. It’s an easy and fast way to buy Bitcoin with a credit card or debit card.

If you are a resident of the US then the Abra app is also a good choice to buy bitcoin with credit and debit cards. Abra registration and verification process is fast and they have reasonable fees for buying with a credit or debit card.

Coinbase is also a good choice if they offer services in your country or state. Coinbase was started in 2014 and have insurance from trusted third parties.

If privacy is your main concern then you can use P2P exchanges like Paxful or Localbitcoins to buy bitcoin with a credit card or debit card but the fee and rate may be higher.

17 How to Buy Bitcoin with Bank Account

All the above-listed exchanges accept payments via Bank accounts. If you are a USA resident then you can use Coinbase, eToro or Abra platform to buy your first Bitcoin with a bank transfer.

For Indian users, Zebpay and Wazirx are the best exchanges to buy bitcoin using Bank account. Zebpay offers a 0% trading fee whereas Wazirx has a 0.25% fee for trading.

Bitbuy is the best platform to buy bitcoin in Canada using a bank account. The process is smooth and simple for new users.

18 How to Choose the Best Exchange to Buy Bitcoin

When you read about how to buy bitcoin you will come across many platforms and exchanges that provide services. Every exchange is different from others and provides a different set of features.

Before choosing an exchange or platform there are some benchmarks you should check.

Liquidity

Liquidity means the trading volume of a pair. The higher the liquidity the easier and faster your orders filled and you can buy and sell large quantities also. Big exchanges generally have good liquidity and hence there is a very low difference in the buy and sell price. The above-mentioned exchanges have high liquidity and you can buy from any of them according to your payment method and country. If you trade on a low liquidity exchange there are many chances that your orders will not fill completely and there is also a huge buy and sell difference.

Security

Security is one of the major concerns of the cryptocurrency market. You will hear about the biggest hack of MT. Gox exchange in which more than 800,000 Bitcoins are stolen.

You should choose a platform that offers different types of security features like 2FA, Email verification, OTP confirmations, etc. All the exchanges mentioned in the post are highly secure and provides users multi-layer security.

Fees

Every exchange has a different fee structure. The fee will kill your profits if it is too high. You should check the trading fees of all exchanges and then choose the cheapest one to buy bitcoin.

Payment Methods

There are many payment methods you can use to buy bitcoin from an exchange. You can use an online bank transfer or a credit card/debit card to buy bitcoin. Many exchanges support multiple payment processors like Paypal, Google Pay, Ali Pay, etc.

19 Final Thoughts

This is the time to buy bitcoin and join the revolution. There are very few people that hold and buy bitcoin now. Try the world-changing technology.

We have given the best platforms as per our research and experience. The cryptocurrency market is very fast and there are many new platforms coming every day. Do your research before choosing an exchange to buy bitcoin. Never disclose your password and account information to anyone whether he is pretending to be a support person from the exchange.

Image Source: Cryptomaniaks