How to Buy Bitcoins?

How to buy Bitcoins?

Many users who first encountered the phenomena like Bitcoin and cryptocurrency ask the question like this. Buying Bitcoins is much easier than it may seem at first sight. The most popular ways to do it are listed below. However, before proceeding with this operation, you have to take care of the most important thing: to get a Bitcoin wallet.

The wallet is necessary to receive, keep, and manage the acquired cryptocurrency. We will not explain here what kind of wallet you need (you can learn about it here) but directly proceed to the information on available methods of buying Bitcoins.


Cryptocurrency exchange

Cryptocurrency exchange markets are specialized websites dealing with trading Bitcoins and other cryptocurrencies. Many websites offer users to top up their accounts in dollars and euros while some others (like BTC-e) allow doing it in roubles. There are also local exchange platforms, offering local currency accounts.

Each user registered at an exchange platform can offer other users to buy or sell (place an order) a certain amount of currency at a specific price. The price at which contracting parties agree to sell or buy Bitcoins defines the cryptocurrency exchange rate. Due to various factors, the exchange rate is constantly changing. So occasionally, having waited for some time, you can buy the cryptocurrency at a more favorable price (or the other way round).

You can top up your account on the exchange platforms resorting to different methods: on European or American websites users primarily do it with their bank cards while Russian and Ukrainian websites additionally offer alternative payment systems like Qiwi, PerfectMoney, OKPAY or Payeer. When transferring money to your account, mind that depending on the method you choose, you will most likely have to pay a commission fee.

Having exchanged your money for Bitcoins, you can subsequently withdraw them to an earlier created Bitcoin wallet and manage them at your own discretion.


Online exchange services

There are many online services offering various kinds of electronic money exchange into conventional currencies. Because of the Bitcoin popularity growth, such exchange platforms started offering Bitcoin purchase and sale operations.

Unlike exchange markets, where cryptocurrencies can be purchased at any time once there are funds on the account, such services provide instant exchange at the rate set at the time of the financial operation. The rate, in general, is slightly lower than the market average. However, there is also a great advantage, especially for users from the Russian-speaking Internet segment, where users can buy the cryptocurrency via WebMoney or Yandex.Money payment systems.

Prior to using online exchange services, we recommend comparing the offered exchange rates with other similar websites and checking their reputation, reading reviews on various forums or specialized platforms which monitor such exchange services. The website is one of the most known and reputable monitoring platforms. Having chosen the necessary currency exchange direction on the website, you can see all available options, exchange platforms’ real rating, and respective reviews.


Physical purchase

Resorting to services of dedicated websites like the most famous LocalBitcoins platform, the parties concerned can purchase and sell Bitcoins while meeting with each other. Users select the country and city of residence, indicating the desired amount of Bitcoins and payment method, and use the possibility of a personal meeting to conduct a money transfer operation.

Resorting to this method, the important thing is to choose a reliable seller who you can trust and have no fear of fraud. LocalBitcoins usually ensures lower exchange rates, compared to the market average, because both transaction parties save on commission fees. First, the buyer transfers the necessary money amount and receives Bitcoins in return (or does not receive anything, thus becoming the fraudster’s victim).

For this reason, if you are willing to purchase cryptocurrencies on the LocalBitcoins platform or any other similar services, you should proceed with extreme caution. Moreover, never buy Bitcoins from strangers without checking their reputation in the first place.

Read more on Bitcoin:

How Do Bitcoin Transaction Work?

How Does Bitcoin Mining Work?

How to Buy Bitcoins?

How to Sell Bitcoin?

What is Bitcoin?