How to buy bitcoins? Guide to buying the most popular cryptocurrency globally by credit card, wallet, exchange, or CFD.
How to buy bitcoins? Thanks to the latest and recent ascent, this is a question that many are asking again. It is a fact: 2019 is witnessing a recovery in the cryptocurrency market, and today, bitcoin remains the digital currency par excellence, the most widespread, the most used, and with the greatest capitalization.
The price of bitcoin quickly went from being worth a few hundred dollars to over $ 20,000 per unit at its all-time high, testifying the great opportunity that the decision to buy bitcoin can entail.
Whether it is to speculate on the market or to take advantage of the anonymity of transactions, knowing how to buy bitcoins is the first step to take advantage of a favorable market phase, which could push the price of bitcoin even higher, with due attention to who talks about the speculative bubble.
This guide is not intended to help you decide whether to invest in Bitcoin. If you’ve already decided to go for the cryptocurrency of the moment, here’s everything you need to know about how to buy Bitcoin.
How to buy Bitcoin: summary
- How to buy bitcoins?
- Buying bitcoins: the wallet
- Buying bitcoins on exchanges
- How to choose the bitcoin exchange
- Buy bitcoins with CFDs
- Buy bitcoins with and credit card
- Frequently asked questions on how to buy bitcoins
How to buy bitcoins?
There are various ways to buy bitcoin: as often happens, the choice depends on your needs. The “classic” method involves the creation of a wallet (online coin holder) and the purchase at one of the various bitcoin exchanges scattered on the internet.
Still, another sees using their credit card to buy bitcoin, but it turns out to be the most expensive and risky option. Another method, faster and easier to manage, is to choose CFDs through a trading platform.
You can buy bitcoins:
- through CFDs ;
- by credit card at bitcoin exchange;
- at bitcoin exchange by keeping the currency on your wallet.
In detail, let’s see all the procedures necessary to buy bitcoins, from creating a wallet to purchasing on an exchange using CFDs or credit cards.
How does bitcoin appear with a wallet?
To buy bitcoins safely, you need to create a wallet account where you can store them and, once the procedure is complete, log into your account via PC or smartphone and buy bitcoins.
The complete list of applications that allow the creation of a wallet is provided directly by www.bitcoin.org, the official website of the IT community that created the cryptocurrency.
As shown in the image, it is possible to choose the issuer of the wallet depending on the device we intend to use: desktop, smartphone, or tablet. For this guide on buying bitcoins, we choose Bitcoin Core, available for Mac, Windows, and Linux, and click on the Install button and then on Download. The Download will take a few minutes.
Once the program has been run, it is advisable to take care of safety immediately. It would help if you made your wallet private: go to Settings and click on Coin purse.
Still, on the security front, it is appropriate to wait for all the blockchain technology to be downloaded and synchronized with our computer through the software we have just downloaded.
The blockchain is the technology on which the whole bitcoin system is based: each block that makes up the unique chain contains the addresses of tot wallets worldwide, a fixed number of coins, and the block’s data that precedes it.
Now we have to find out the address of our wallet, which will be useful for transferring the bitcoins that we will buy on the internet. On our Bitcoin Core software, we go to Menu -> File -> Receiving addresses.
How to buy bitcoins on exchanges
To buy bitcoins, you have to go to a bitcoin exchange, a place where bitcoin buyers and sellers virtually meet. Among these, the most used internationally are Coinbase, Bitstamp, and BTC Markets.
We’re talking about platforms that need to know your wallet details and address – a representative code at least 12 alphanumeric characters long.
Through these exchanges, it is also possible to buy other cryptocurrencies, such as Ethereum.
Once you have made the transaction, most of these platforms will deposit the purchased bitcoins into your wallet within a few hours.
To buy bitcoins, once we have the wallet, we can follow the following steps:
- find a bitcoin exchange ( Coinbase itself, for example);
- buy bitcoin by converting our currency, the Euro;
- transfer the purchased bitcoins to our wallet;
- get a bitcoin debit card to carry out your spending.
The registration procedure at the exchanges is guided and simple to follow, as is the purchase of bitcoins itself.
A 100% Italian exchange
In our country, one of the best solutions to buy Bitcoin is represented by Young Platform. 100% regulated, Young Platform allows you to buy Bitcoin and more than 20 cryptocurrencies such as Ethereum, Ripple, Litecoin, etc.
The platform relies on the best technological partners on the market, such as Fireblocks for custody, Onfido for identity verification, and Chain analysis for On-Chain transactions, to guarantee security and professionalism.
On Young Platform, it is possible to deposit Euros through the classic bank transfer (also instantaneous), utilizing credit/debit cards and Apple Pay.
Furthermore, unlike other exchanges, on the Young Platform, it is possible to deposit cash thanks to the Young Cash functionality. Just go to a Pam, Panorama, Pam Local, Penny Market, and Carrefour supermarket, generate a barcode from the app, and pay in cash at the cashier.
Credit, as in the case of instant transfers and cards, is instantaneous.
The funds held on the Young Platform are held on Italian banks (Banca Sella and Banco Azzoaglio). This aspect represents a guarantee of security for all incoming and outgoing operations, compared to exchanges that use non-European banks.
REGISTER ON YOUNG PLATFORM
Kriptomat: simplicity and security in the foreground
Suitable for beginners and more experienced users, Kriptomat is an exchange born in 2018 in Estonia’s European innovation leader and is active in over 80 countries.
Based on the simplicity and fluidity of the cryptocurrency trading procedure, Kriptomat allows you to buy and trade over 130 crypto assets. As for the fees, those applied by Kriptomat are contained and transparent:
- 1.45% in the case of fiat currency ;
- 0% in the case of a crypto-to-crypto exchange.
In the case of deposits, Kriptomat offers a wide range of solutions: you can make transfers, use credit and debit cards or services such as Skrill and Neteller.
A particularly important aspect is the support team in over 20 languages made available by Kriptomat.
For those wondering if Kriptomat is safe, the answer is yes: the company is required to follow European laws and regulations (data is processed in line with the EU’s general data protection regulation, the GDPR. ), provides multi-factor authentication, and the funds are of the users are stored offline.
With Kriptomat, long waits are not necessary to enter the world of crypto assets: personal identity verification takes place in a few minutes.
How to choose a bitcoin exchange
There are factors to consider when choosing the exchange where you will buy bitcoins, which vary from person to person depending on the following aspects:
Exchange rate – How close is the exchange rate offered by the exchange to the world price of bitcoin? By comparing the prices offered by the various exchanges, it is easier to get the best exchange rate.
Payment Method – Find a bitcoin exchange that accepts your preferred payment method. Each payment method carries different fees. Purchases via credit cards, for example, often have a 3-10% fee, while most wire transfer deposits are free. Further information on fees can be found on each exchange’s website.
Speed – Buying bitcoins fast can be difficult, especially in large quantities. You may have found the best Bitcoin exchange, but if verification takes a week and you need bitcoin right away, then you’ll have to look elsewhere. Initial verification can often take a few days, but all subsequent purchases should be more immediate.
Quantity limits – Each Bitcoin exchange has different purchase limits, which often vary depending on the level of security applied to identity verification.
For example, at Coinbase, regular users can buy up to 1,000 euros worth of bitcoins per day. Fully verified users, on the other hand, can buy up to € 50,000 per day.
Fees – Each Bitcoin exchange charges different fees for its services. Most charge a flat rate of 1% per transaction. Exchanges that work on orders have a high trading volume and often offer 0.25-0.50% commissions for each trade.
Privacy – Exchanges that accept credit cards or bank transfers are required by law to collect user identity information.
Buying/selling bitcoins with CFDs
Through the CDF, you do not get bitcoin but gains on rallies, through a long position, or on the downside, with a short position (or sell ). Getting bitcoin through CFDs also allows you to short cryptocurrency, an essential tool if you think the price of bitcoin will collapse soon because it is in a speculative bubble.
Plus500 is one of the most used and widespread trading platforms and offers the possibility of buying and selling Bitcoin CFDs. CFDs are contracts for difference: the investment does not take place directly on the underlying (in this case bitcoin) but its price movements, offering the great convenience of investing in bitcoin while not having to create a wallet without registering with an exchange.
Your data is known only to your broker, and through its platform, you can trade many other financial instruments, such as stocks, indices, commodities, and currencies.
Below is a guide on how to buy/sell bitcoins via CFDs:
Step 1 – Sign up and create a Plus500 account Plus500
is a Contract For Difference (CFD) engine registered and approved by the Financial Conduct Authority, registered with Consob, and listed on the London Stock Exchange. It is one of the very few best-known brokers in the world to offer the possibility of buying Bitcoin.
To create an account, register on the official website 72% of retail CFD accounts lose money. And click on Real money if you want to invest real money immediately, or Demo if you want to test the platform first through virtual money.
Step 2 – Verify Your Account
Plus500 will send you a verification link to your email address. Open your email and click.
Step 3 – Buy / sell bitcoins
To open an order on your platform, choose whether to invest on a rise or a fall and indicate your investment amount, deciding whether to take advantage of the leverage effect.
Attention: The number of Bitcoins must be specified to target your profit and set the stop-loss order. Just remember that this is a CFD and not a real Bitcoin. One of the key benefits of using the Plus500 platform over buying Bitcoin on the market is avoiding losses and aiming for profit instead.
How to buy bitcoin with a credit card
The easiest and fastest way to buy bitcoins is by using a credit or debit card, for example, on the Coinbase exchange, also available in Italy. You can buy bitcoins through SEPA transfer, deposit, credit card.
However, you must be careful: buying bitcoins with a credit card instantly without using a wallet requires very high fees, and the process is more at risk of fraud.
Buying bitcoins: frequently asked questions
What are the risks of buying bitcoins with a credit card?
First of all, choose companies with a solid reputation and compliance with the law. There are rogue companies that sell bitcoins to collect credit card numbers and personal information to carry out scams and identity theft. Second, it is possible that expenses are classified as cash advances and therefore have different fees or policies applied. So, make sure you are familiar with your chosen exchange and how it handles bitcoin purchases.
Why buy bitcoins instantly with credit cards?
Speed and convenience. Buying bitcoins with a debit or credit card is the quickest way for new users to get bitcoins.
Can I buy bitcoins on multiple exchanges if the purchase limits are too low?
Yes. Some limits can be very low, even $ 50 per day. As a result, you can buy from multiple exchanges to accumulate a larger sum.
Is providing personal information to buy bitcoins risky?
Yes. Buying bitcoins from exchanges that are also compliant with regulations is risky because you have to trust that the company registers the documents with the privacy and security regulations. Like all information provided online, the service provider could be attacked and robbed.
Do I have to keep them on my exchange after buying bitcoins?
NO! Storing your bitcoins in your bitcoin wallet is safer. After buying bitcoins, you need to move them to a secure wallet immediately.
Many people have lost hundreds of millions of dollars due to Bitcoin exchanges losing their clients’ funds. If you check the private keys of your wallet account, then you will not be a victim of these attacks.