How to buy bitcoin, a beginners guide
As more people become aware of bitcoin, one of the many questions I get is "How do I buy bitcoin?". Learning about a new technology can be daunting, especially for those whom are not technically savvy. I hope to break down a few barriers and get you on your way to purchasing your first bitcoin! Although, there are many options when it comes to purchasing bitcoins, I'm only outlining a handful of methods. Please note that you'll have to setup your accounts first, and this may take a period of time. However, once these are in place, you may buy and sell bitcoins as you wish. One final note before I get to the guide: Always use a complex, and long pass phrase when signing up for new accounts. Also, always use two-factor authentication whenever possible. Take great care to remember your passwords/phrase, as you are solely responsible for your bitcoins.
How to buy bitcoin - USA
- Sign up for an account with Coinbase (you'll receive $1 worth of bitcoin by using this link)
- Verify & link bank account to Coinbase.
- Verify & link phone number
- Add credit card info (optional)
- Buy bitcoin from Coinbase (after bank account linked)
As you can see, the process is fairly straight forward. I recommend becoming a fully verified user at coinbase. This allows you to buy & sell instantly, and raises your total number of bitcoins you can buy & sell per day.
- Sign up for an account with Bitstamp.
- Verify your account with required documents.
- Wire/deposit funds into Bitstamp account (deposit section - SEPA/International bank)
- Wait for deposit to show up in Bitstamp.
- Purchase bitcoins from Bitstamp. (buy/sell section)
Bitstamp provides an easy way to purchase bitcoins, and is one of the largest bitcoin exchanges in the Eurozone.
- You must have a bitcoin wallet (online or on your PC) to receive coins with a local bitcoins transaction.
- Sign up for an account with local bitcoins.
- Select "I want to buy bitcoins", and select your geographical location, then search.
- Select a seller that offers the deal that you'd like, and select "Buy". It's a good practice to select a user with a good reputation.
- Enter the amount of bitcoin you wish to purchase, then select "Send trade request". More info can be found here.
- Follow the instructions listed on the page. These instructions vary for each individual seller.
- Once the transaction is complete, the bitcoin will be released to your wallet address you provide.
Local bitcoins is more geared for experienced users. They provide many payment options, including face-to-face transactions. They also include an escrow service to help protect you from scammers. You will need to have a bitcoin address to receive the bitcoin. Please note, that you must take great care when doing transactions using local bitcoins. If you are doing face-to-face cash transactions, it's always best to do this in a public place, and it is recommended you take all necessary precautions. If you do not feel confident, then using one of the other two methods above is recommended.