Everything You Need to Know About How to Buy Bitcoin
- By -
- June 26, 2023
It’s hard to think of a time when cryptocurrency wasn’t capturing headlines. From celebrities and academics to political figures, it feels like everyone is talking about cryptocurrency — especially Bitcoin. Millions of people all over the world own Bitcoin and recognize the potential value in investing. If you're ready to purchase your first Bitcoins, it’s helpful to understand the different ways you can go about it. So let’s get you started! This quick guide will cover what you need to know about how to buy Bitcoin
1.Why Buy Bitcoin?
2.Bitcoin Quick Facts & Stats
3.The Bitcoin Buyer’s Toolkit: What You Need to Start Buying Bitcoin
4.Three Ways to Buy Bitcoin
Why Buy Bitcoin?
It’s important to identify what you’d like to get out of buying Bitcoin. People who hold, trade and invest in Bitcoin do so for a wide variety of reasons, including:
Investing in cryptocurrency can be exciting and community-building, especially when you find a coin you’re optimistic about. Hobby investors aim to capitalize on crypto market opportunities with help from other investors in online communities.
Cryptocurrency rivals wire transfers with its lower fees and faster transfer speeds. This can make it easier and less expensive for individuals looking to send money internationally.
Making Private Transactions:
Decentralized currencies such as Bitcoin offer a way to essentially be your own bank without having to share personal information with governments or intermediaries.
Bitcoin Quick Facts & Stats:
It always helps to have a solid knowledge base around the coins you are looking to buy! Here are some quick facts and stats on Bitcoin and some additional resources for you to check out.
- Bitcoin was created in 2009 to be a decentralized, peer-to-peer form of digital currency.
- The blockchain technology used to uphold the Bitcoin network is now used by thousands of other crypto coins and has additional uses outside of cryptocurrency.
- As of December 7, 2021, Bitcoin has a market capitalization of more than nine hundred billion dollars. If you want to follow Bitcoin’s price changes, click here.
- As of December 7, 2021, there are more than 18 million Bitcoins in circulation out of the 21 million that can be mined. There is a finite amount of Bitcoin that can be mined into circulation by design.
The Bitcoin Buyer’s Toolkit: What You Need to Start Buying Bitcoin
So you’ve outlined your reasons for buying Bitcoin, you’ve got the facts and possibly even your investment strategy. Now it’s time to get organized to make your purchase. Depending on how you choose to purchase Bitcoin, here’s a breakdown of what you’ll need to start buying Bitcoin.
1. A Bitcoin-Compatible Crypto Wallet:
Crypto wallets are a necessary part of any Bitcoin transaction. You’ll need to set up your wallet of choice and get familiar with how it works before you get to the point of purchase. It’s also important to make sure your wallet is Bitcoin compatible.
2. A Method of Payment:
You will need one of the following methods of payment handy:
- Debit card
- Canadian bill(s)
- PayPal account
- Wire transfer
- Gift cards (for peer-to-peer transactions)
3. Personal Identification:
Many exchange platforms, brokers, trading apps and Bitcoin ATMs require identity verification. This may also depend on the amount of Bitcoin you are buying.
4. Directions to A Local Bitcoin ATM:
If you’re using a crypto ATM to purchase Bitcoin, find an ATM that’s easy for you to get to, whether you’re coming from home, work or running errands in the neighbourhood. You can find the Localcoin ATM nearest you here.
5. An Account on an Exchange, Trading or Peer-to-Peer Platform
If you’re using an online platform to purchase Bitcoin, set up an account with a secure internet connection.
Three Ways to Buy Bitcoin
You’re finally ready to buy Bitcoins! The only thing left is to choose how you’d like to buy them. Buying crypto for the first time can seem daunting; you can’t just buy Bitcoin at the bank, and a quick online search will generate thousands of options. But it’s easier than you think!
Here are three popular methods for how to buy Bitcoin:
1. Online Crypto Exchange Platforms
One of the most common ways to buy, sell and trade cryptocurrencies like Bitcoin is through online exchange platforms. These are marketplaces that use internet-connected crypto wallets to facilitate crypto transactions. Once you’ve made an account, you can purchase coins using fiat currencies such as the Canadian dollar, or by trading between crypto coins.
- Cryptocurrency exchanges allow for convenient transactions, but come with security risks
- Exchanges may collect your personal information to verify your identity
- Bitcoin transaction fees on exchanges vary widely between exchange platforms
2. Peer-to-Peer Platforms
In contrast to exchange platforms, peer-to-peer marketplaces match up individual buyers and sellers, making direct trades possible. These platforms operate without holding any funds during the trade, and even allow you to trade for other commodities such as gift cards. That said, these exchanges can invite scams and fraudulent behavior. The security, safety, privacy and asset control associated with these peer-to-peer exchanges can vary drastically. This makes them a less than ideal option for newcomers to cryptocurrency.
- Peer-to-peer platforms allow users to make direct trades with other users
- Other users may use peer-to-peer platforms fraudulently
- They may also collect personal information to verify your identity
- Bitcoin transaction fees can vary widely
3. Bitcoin ATMs
Using a local Bitcoin ATM is an excellent, user-friendly option for crypto newcomers looking for a way to buy Bitcoin. These internet-enabled terminals help both newcomers and experts buy and sell Bitcoin safely, securely and with ease. They work by connecting directly to blockchain networks, allowing you to purchase cryptocurrency with cash or sell cryptocurrency from your wallet. Because they don’t host your wallet, you have the freedom to choose which crypto wallet works best for you. Once you’ve located your local Bitcoin ATM, the process is simple and straightforward:
- Step 1: If the ATM offers buying/selling services for more than one currency, select Bitcoin (BTC).
- Step 2: Find the QR code associated with your Bitcoin address in your wallet, or plug in your hardware wallet.
- Step 3: Scan the QR code using the built-in camera.
- Step 4: Insert your bills when prompted.
- Step 5: Confirm the amount and complete your purchase. Transactions are usually instantaneous but may take anywhere between 10–30 minutes, or even 1–2 hours in some cases.
- Step 6: It’s recommended to wait for at least one confirmation on the blockchain before spending or sending your purchased funds.
- Bitcoin ATMs are physical locations that make crypto transactions easy, safe and secure.
- Identification may be required for transactions over a certain dollar amount.
- ATM service fees are tied to changes in the price of Bitcoin.
- Many different Bitcoin-compatible wallets work at Bitcoin ATMs, so choose the one that’s best for you!
Buy Bitcoin with Localcoin!
Now that you have read this comprehensive guide on how to buy Bitcoin, you can think about purchasing digital currencies of your choice. Localcoin ATMs offer a simple, user-friendly way for anyone to buy and sell Bitcoin, Ethereum, Litecoin and Doge. Newcomers and experts alike can easily access Localcoin ATMs when and where they need to. As one of North America’s largest Bitcoin ATM networks with more than 900 terminals, we make buying and selling cryptocurrencies easy and accessible for crypto enthusiasts in their communities.
At Localcoin, our mission is to provide a simple, secure buying and selling experience of digital currency for customers across North America. From running North America’s largest Bitcoin ATM network to our online retail platform, we are constantly seeking to innovate in the blockchain infrastructure space. Welcome to our blog, where customers can educate themselves on the world of cryptocurrency, learn more about our company vision and more!