Estimated reading time: 4 minutes, 24 seconds
Want to get into cryptocurrency, but don’t know how? We’ve got the top four ways to buy bitcoin and other cryptocurrencies!
Jeremy is here to tell you all about them. So everybody is looking to get in on the crypto craze, and what was once a daunting task has now been simplified. As demand for cryptocurrencies has risen and more people have looked to buy, the process has gotten easier. So now that you’ve done your own research and are ready to buy some cryptocurrency, we’re going to go over a few of your options. (And if you haven’t DYOR, check out a couple of our guides, like WTF is crypto? and our Essential Wallet Guide.)
Option 1 – Exchanges
You’re first option is to head online to an exchange. This is, by far, the most widely used option because it is also the most convenient. Exchanges like Coinbase and Robinhood allow you to exchange fiat for some select cryptocurrencies. For example, Coinbase allows you to buy bitcoin, bitcoin cash, ether, and litecoin.
You simply deposit that fiat (using your bank account or debit card), select which cryptocurrency you’d like to buy, and that cryptocurrency will be credited to your Coinbase account. From there you should move it to your cryptocurrency wallet of choice. Be aware that exchanges kind of have a target on their back, and several have been hacked. So we don’t recommend keeping your crypto on the exchange. (For more info on security, check out our wallets guides and find a wallet that’s right for you.)
These exchanges make it really easy to buy cryptocurrency. They even have mobile apps, but with convenience comes a downside. Fees. Coinbase currently charges fees around 4%, and some people simply aren’t willing to pay that fee. Especially if they are making a big purchase. Additionally, some banks have blacklisted sites like Coinbase, and they will reject any payment made to websites they have labeled as having to do with cryptocurrency.
Option 2 – Trade with friends
If you’re looking for a route with less fees, it might be a little bit more difficult to buy cryptocurrency. Our second option is actually pretty simple. Use decentralization to your advantage, and find a friend to transact with.
Buying from a friend allows you to set an agreed upon rate and interact with someone you trust. We realize that may not be the most realistic option for some people. Especially since we were once the crazy people telling everyone we knew about this awesome thing that was going to take over the world.
Option 3 – LocalBitcoins
Don’t have a friend to buy off of, but still want to conduct a peer-to-peer transaction? Well then localbitcoins.com might be your move. LocalBitcoins is a peer-to-peer bitcoin exchange.
Buyers create advertisements with the price and the payment method they want to offer. The website uses an escrow system to ensure users aren’t getting scammed. They are essentially a platform and medium to exchange bitcoin, giving more assurance to buyers.
Typically with LocalBitcoins, you are paying a lesser fee than on an exchange, and you have several more payment options to select from.
Option 4 – Bitcoin ATMs
But let’s say you don’t want to wait, and you want to buy your bitcoin now! Well there’s an option for that too. Bitcoin ATM locations are growing rapidly, and you can use several websites to find out if one is near you! One is Coin ATM Radar, which has a comprehensive map.
These Bitcoin ATMs are exactly like traditional banking ATMs. You can both buy and sell cryptocurrency near instantly. Seems too good to be true? Well it kind of is. You can do everything I just told you, but it is going to cost you. You may pay fees around 15% or 20%. However, expect these fees to go down as more and more of these machines pop up. The increased accessibility and competition should bring those fees down. It’s going to vary from machine to machine so be sure you know what you’re getting into before you use a Bitcoin ATM.
Are you ready to buy?!
So those are your options for how to buy bitcoin, ether, litecoin, and more. The choice can really be summed up like this. At this point, you have two options when buying. The convenient route, which is going to require fees. Or the slightly more difficult peer-to-peer transaction, which may be harder to set up.
If you have any questions about how to buy bitcoin and other cryptocurrencies, let us know! For a more comprehensive guide on ways to buy cryptocurrencies, check out our full guide page here! And now that you are ready to buy, set up a wallet for your security and safety of your tokens!
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