There are not that many people nowadays who don’t know what Bitcoin is. After all, it’s currently one of the highest value assets anyone can get their hands on – it not only provides a high return on investment but also great utility as a borderless decentralized digital currency.
There are many different ways to acquire Bitcoin – the most popular and the biggest cryptocurrency. Out of all of them – earning it, mining it, exchanging other digital assets for it, and so on – buying is the easiest and the most straightforward one.
In this article, we will tell you everything you need to know about buying Bitcoin.
Please note that this guide is not financial advice.
Ways to Buy Bitcoin
With more and more convenient and easy-to-use crypto purchasing platforms appearing every year, the process of buying Bitcoin has become very straightforward. The industry has seen the demand the public has for crypto in general and Bitcoin in particular, so there are a lot of beginner-friendly crypto services (including Changelly) that are here to welcome new crypto investors to the industry.
If you’ve never purchased Bitcoin or crypto before, we recommend trying to buy a small amount at first – that way you’ll be able to experience the crypto purchasing process without having to risk losing your money to an incorrectly written wallet address, bad rate, high fees, and so on.
All the options listed below also allow you to sell and withdraw Bitcoin. Please note that you will need a Bitcoin wallet if you want to buy, sell, or exchange it.
Buying Bitcoin from a Centralized Cryptocurrency Exchange
If it’s your first time buying Bitcoin, we recommend using a centralized cryptocurrency exchange (CEX). It’s the easiest, most straightforward way of purchasing crypto.
Centralized exchanges are highly optimized, and have high trading volume and liquidity, meaning they offer great rates. Most centralized cryptocurrency exchanges are KYC/AML compliant, meaning they protect their users against engaging with any illegally obtained money and can catch and deal with money laundering and other criminal activity.
However, that said, there are many CEXs that don’t require you to create an exchange account or pass KYC to buy and sell crypto. As long as you’re not buying a big amount of Bitcoin, you will not have to share your personal information.
Many centralized cryptocurrency exchanges are extremely user- and beginner-friendly, and offer their clients an intuitive interface, 24/7 support that can answer any crypto and Bitcoin-related questions, extensive how-to guides on all-things blockchain, and streamlined cryptocurrency purchase and exchange processes. And if you get an exchange account (in most cases you will be able to create one with just your email) you will be able to view your transaction history, which can be useful for crypto beginners.
Centralized exchanges usually have slightly higher fees as they charge a fixed exchange fee. However, as the rates on CEXs are generally better than those on DEXs, that fee is not noticeable.
Here are some of the best centralized exchanges (CEX):
The biggest crypto exchange in the world. It offers great options for buying Bitcoin, has high liquidity and low fees, and is perfect for experienced crypto investors.
A great option for beginners. Changelly PRO is a vital part of the Changelly ecosystem. This trading spot perfectly suits crypto newcomers since it has intuitive terminal and interface, and professional traders (a wide variety of trading instruments and tools). Purchase Bitcoin and trade other digital assets like a PRO.
Buying Bitcoin Using a Peer-to-Peer Trading Platform – Decentralized Cryptocurrency Exchange
There are quite a few differences between centralized and decentralized cryptocurrency exchanges (DEX, P2P). The biggest one is that on a centralized exchange, buyers trust the middle man with conducting their transactions and keeping their funds safe. In comparison, decentralized exchanges are much more anonymous, as there is no middle man and the platform possesses and stores minimum information about each investor.
The full anonymity provided by peer-to-peer trading platforms is a double-edged sword – on one hand, it protects the personal information of its users, on the other, it can shield criminals, too.
Peer-to-peer trading platforms usually have lower liquidity, leading to rates that are on average worse than the ones on centralized exchanges. However, decentralized exchanges usually have extremely high trading volumes due to network nodes not having to be updated in real-time. As a result, they have higher transaction speed. Additionally, DEXs are more secure than centralized cryptocurrency exchanges, and cannot be controlled by the government or other centralized authorities.
Although DEXs used to be non-beginner-friendly in the past, that’s not the case anymore. They are still less intuitive than centralized exchanges, but many P2P platforms have made their interfaces more user-friendly in order to help crypto newbies to be able to use them.
Here are some of the best decentralized crypto exchanges for purchasing Bitcoin (P2P, DEX):
This is arguably the biggest and most trusted P2P exchange in the world. They support over 60 payment methods for purchasing Bitcoin. LocalBitcoins requires email and phone verification for all users.
This peer-to-peer trading platform created by Binance, the biggest crypto exchange in the world, offers users a low-fee access to Bitcoin. In addition to being more private than its centralized counterpart, Binance P2P also supports a much wider variety of payment methods.
How to Buy Bitcoin P2P
It’s generally easier to buy Bitcoin on a centralized exchange, but purchasing it on P2P platforms is also not that complicated. Here’s how you can do it:
Create an account on a peer-to-peer trading platform of your choice (if needed).
Look through the listings and sellers to find the one you like. Pay attention to their stats like how many orders they completed and the reviews.
Select that seller, follow the instructions on the platform, and send the payment.
Wait for your newly purchased BTC to reach your Bitcoin wallet.
Buying Bitcoin from a Bitcoin ATM
Bitcoin ATMs work similarly to how regular ATMs work, making them a great choice for beginners. They allow customers to purchase, exchange, and sell Bitcoin and other cryptocurrencies.
While it’s easy to buy and sell Bitcoin using an ATM, there are two big downsides to this method. First, ATMs have by far the highest fees – 7-9% of the total transaction amount in most cases.
Secondly, Bitcoin ATMs are not exactly commonplace. You will likely have to travel to reach one, even if you live in a big city. You can find the nearest Bitcoin ATM using one of the many maps available online, like this one.
Additionally, many Bitcoin ATMs require you to submit some personal information and even pass KYC as a security measure.
If you want to learn more about Bitcoin ATMs and where to find them, read this article.
Easiest Way to Buy Bitcoin
Using centralized cryptocurrency exchanges is the easiest way of buying Bitcoin. Most crypto exchanges nowadays are beginner-friendly and don’t require you to know much about blockchain or crypto to join in on the fun. Centralized exchanges allow you to easily buy Bitcoin in minutes from the comfort of your own room.
Safest Way to Buy Bitcoin
The safest way of buying Bitcoin doesn’t really have much to do with the type of platform you’re buying it from – rather, it depends on how well you research that particular platform. Check whether any users have had any issues with that platform in the past and whether it’s ever been hacked. Most cryptocurrency exchanges, both centralized and P2P ones, usually have a “security” section in their FAQ – it’s usually a bad sign if an exchange doesn’t disclose how they plan on keeping your funds and personal information safe.
Please beware that there are some scammers in the crypto world that set up fake websites that look like perfect copies of established exchange platforms. Make sure to check whether the address of the website you’re using is correct and doesn’t contain any random digits, letters, or full stops or has a wrong domain name (like .org instead of .com). If you enter your credit card info when you buy and sell crypto on a fake website like that, you risk losing the funds on your bank account.
You should also look out for fraudulent activity when using Bitcoin ATMs, especially when purchasing with your bank card. Sometimes thieves use devices that can read your credit card information when you insert the card into the ATM – carefully check the area that your card will go through to make sure nothing has been attached to it. This type of fraud isn’t limited to crypto ATMs.
Additionally, you should also make sure to keep your cryptocurrency wallet safe the same way you would protect your bank account. Don’t share any info about it with anyone you don’t trust. Always keep track of your private key to make sure you don’t lose it.
Most platforms offer users a wide variety of payment options to buy Bitcoin with. No matter what country you’re a resident of and what payment method you prefer, you are sure to find a platform that will work for you.
How to Buy Bitcoin with Credit Card or Debit Card
Buying Bitcoin with your bank card is really easy. This payment option is offered by almost all platforms and is the most accessible one.
To buy crypto with a credit card or a debit card, go to your favorite exchange and choose a bank card as a payment method. Then, enter your card details during checkout.
How to Buy Bitcoin with PayPal
Buying Bitcoin using your PayPal account is also a good option that is available on many exchanges. The main downside of this option is having to pay PayPal fees – the platform charges a commission for international payments.
How to Buy Bitcoin with Apple Pay
This is arguably the fastest and easiest way to purchase Bitcoin. All you need to do is confirm the transaction, no need to enter any info.
Apple Pay is supported by a wide variety of different exchanges. It is a quick and easy payment method to use if you have an Apple phone, tablet, or computer. You can purchase Bitcoin and over 200 cryptocurrencies with a credit card, bank transfer, or Apple Pay on Changelly.
How to Buy Bitcoin with Bank Transfer
It is also possible to buy Bitcoin directly with your bank account using a bank transfer. This is a good option to go for if you don’t want to share your credit card information and don’t want to pay PayPal fees. Bank transfers are supported by most exchanges.
What Are the Fees for Buying Bitcoin?
Now, let’s talk about the fees associated with buying Bitcoin. Nobody wants to lose an arm while trying to buy some digital currency, yet, unfortunately, that does happen sometimes – not literally, of course (or at least we hope not)!
Because of how cryptocurrencies in general and Bitcoin in particular work, there are transaction fees for buying, selling, exchanging, and trading almost all of them.
Here are the type of transaction fees you have to pay when you buy Bitcoin:
All exchanges charge a different fee for their services. Peer-to-peer exchanges typically have either very low fees or no fees at all. Centralized exchanges usually have one platform-wide fee. If the transaction is carried out via a fiat provider, which is the case for most CEXs, then users will also have to pay the fee of that provider. All these fees are usually rather small.
Network fees are the commission that has to be paid every time a cryptocurrency goes through a blockchain. It is different for every digital currency, including Bitcoin.
Payment option-related fee
Some payment options require you to pay a fee when you use them, especially if the fiat currency you’re paying in isn’t supported by the exchange and has to be converted.
Why Do I Need to Verify My Identity to Purchase Bitcoin?
If you’ve ever tried to exchange or purchase cryptocurrency, you’ve probably heard of KYC. AML/KYC compliance is an essential part of the crypto world that is necessary to make the industry safe and crime-free. Additionally, regulation is one of the keys to crypto mass adoption.
The anonymity and cross-border payment options cryptocurrencies provide are both amazing features, but, unfortunately, they can be exploited by criminals. Users are often required to pass KYC when purchasing, selling, or exchanging high amounts of crypto in order to safeguard both the exchange and themselves against money laundering and other criminal activities.
How to Buy Bitcoin Anonymously
The best way to purchase Bitcoin anonymously is to use a peer-to-peer exchange. There are some that offer fully anonymous transactions, like HodlHodl.
If you are concerned about privacy and want to keep your personal information safe, we recommend checking out privacy coins such as Monero.
How to Store Bitcoin After Purchase: Types of BTC Wallets
Getting a good secure crypto wallet is the most important step in every new crypto investor’s journey. Unlike fiat currencies, digital currencies are not stored in a financial institution like a bank and require dedicated cryptocurrency wallets. If you want to buy and store BTC, you will need a Bitcoin wallet. Learn how to create one here.
Just like a bank, a wallet is meant to keep your funds safe no matter for how long you hold them. However, keeping your funds safe is not the only function the wallet should do. There are many different factors that influence the type and the model of the wallet you should get. Let’s take a look at the different kinds of crypto wallets and the types of users that will get the most use out of them!
Hot wallets are crypto wallets that store cryptocurrency on the cloud. These are digital wallets that are naturally great for storing digital assets. However, since they are online wallets and are connected to the Internet, they’re relatively unsafe and are vulnerable to hacker attacks. On the other hand, a hot wallet is your best bet if you want to use crypto in your daily life or just make a lot of transactions.
Most hot wallets are also either cheap or free, which makes them the perfect choice for beginners – just make sure to not store large amounts of crypto inside them.
Here are some great reliable hot wallets:
A secure hot crypto wallet with a beautiful design and a user-friendly interface. Exodus makes it easy for Bitcoin owners to use their crypto and, if they hold other cryptocurrencies, manage a diversified crypto portfolio.
A cross-platform hot wallet that will give you access to not only secure crypto storage, but also an in-app exchange, crypto news, and more.
In contrast to hot wallets, cold wallets (also called hardware wallets) store user funds on a physical device that is not connected to the Internet. They’re an incredibly secure and reliable way of storing cryptocurrency.
Although many hardware wallets now have in-built exchange functionality and user-friendly desktop applications, they are still not as intuitive to use as hot wallets. Additionally, they are not cheap.
A cold Bitcoin wallet will be the perfect choice for people who want to store big amounts of cryptocurrency.
Here are some of the best cold wallets:
An extremely reliable and secure crypto cold wallet. It recently introduced Ledger Swap – an in-wallet crypto exchange functionality powered by Changelly.
An offline cold crypto wallet that is sure to keep user funds safe. Trezor provides users with great flexibility when it comes to exchanging crypto.
A paper wallet is a printed QR code or a piece of paper that contains keys that can be used to make cryptocurrency transactions. As they are not connected to the Internet, this type of wallet is extremely secure. However, it is not very reliable, as a piece of paper can be easily lost or even stolen. As your private key is not going to be recorded anywhere else, the loss of a paper wallet leads to the loss of all the cryptocurrency holdings that were stored in it.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.